KraneShares CSI China Internet UCITS ETF Accum Hedged GBP · LSE:KWBH
KraneShares CSI China Internet UCITS ETF Accum Hedged GBP — KraneShares — Investor Presentation (June 2020)
18 slides from KraneShares CSI China Internet UCITS ETF Accum Hedged GBP's investor presentation, Jun 30, 2020
Slide 1: MSCI China A-Share Inclusion: A Long Term Catalyst For The Mainland Chinese Equity Market
KBA 30/Jun/2020 MSCI China A-Share Inclusion: A Long Term Catalyst For The Mainland Chinese Equity Market Overview of the KraneShares MSCI China A Share UCITS ETF (ticker: KBA) info@kraneshares.com 1
Slide 2: Introduction to KraneShares
Introduction Introduction to KraneShares About KraneShares Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. The firm is focused on providing investors with strategies to capture China’s importance as an essential element of a well-designed investment portfolio. KraneShares E
Slide 3: KBA Investment Strategy and MSCI Inclusion Overview
Introduction Investment Strategy: KBA KBA is benchmarked to the MSCI China A Index which captures large and mid-cap representation across China securities listed on the Shanghai and Shenzhen exchanges (A-shares). Over the coming years, MSCI will complete the incremental inclusion of China A-shares i
Slide 4: The Evolution of China's Capital Markets and KraneShares
Introduction The Evolution of China’s Capital Markets and KraneShares China’s currency, Oct 2016 the RMB, designated a reserve currency by the International Monetary Fund MSCI announces March 2019 KraneShares Bosera MSCI Shanghai Hong Kong CICC (China HKEX RQFII is established MSCI puts China 2011 J
Slide 5: The China A-Share market is too big to ignore
Why China? The China A-Share market is too big to ignore. Even though China is the world’s second largest economy and stock market, China A-Shares are still underrepresented in global capital markets. Top 5 Country Weights in the MSCI All Country World Top 5 Country Weights in the MSCI All Country W
Slide 6: Emerging Market Evolution
Why China? Emerging Market Evolution • China’s weighting in the MSCI ACWI Index has grown since 1997 but remains a small percentage overall. • We believe China will occupy a larger portion of both the MSCI All Country World Index and investors’ portfolios in general as its markets continue to open u
Slide 7: The Index Matters
Index Overview The Index Matters MSCI is a trusted index provider for the largest global investment managers. 1 As of June 30, 2018, as reported on September 30, 2018 by eVestment, Morningstar and Bloomberg, retrieved 30/Jun/2020. 2 Based on latest P&I AUM data and MSCI clients as of March 2018, ret
Slide 8: MSCI's current definition of China represents a small portion of the total market
Index Overview MSCI’s current Global Standard definition of China only represents a small portion of China’s total market. The MSCI China Index was historically limited to Chinese companies listed on the Hong Kong Stock Exchange. Recently, MSCI expanded this definition to include US-listed Chinese c
Slide 9: MSCI made a larger than expected China A-Share inclusion announcement
Inclusion Overview On February 28, 2019, MSCI made a larger than expected China A-Share inclusion announcement. MSCI increased the inclusion factor of China A-Shares in their Global Standard Indexes from 5% to 20% in 2019. Currently, $1.8 trillion track the MSCI EM Index. Up to $360b are expected to
Slide 10: MSCI China A Index advantages over the CSI 300 Index
Inclusion Overview We believe that the MSCI China A Index has distinct advantages over the CSI 300 Index. • The CSI 300 Index, originally built for domestic Chinese investors, consists of the 300 largest China A-Share stocks ranked by market capitalization. • In comparison, the MSCI China A Index cu
Slide 11: MSCI China A Index stocks are the largest and most liquid in A-Share market
A-Share Characteristics China Mainland Market Capitalization and 30 day Average Trading Volume Decile Breakdown as of 31/Mar/2020 The MSCI China A Index stocks are the largest and most liquid stocks in the Average Market Cap 30 Day Average Daily Volume A-Share market. 91% • There are currently 4,191
Slide 12: Mainland China A-Share equities exhibit low correlation to other global markets
A-Share Characteristics Mainland China A-Share equities exhibit low correlation to other global markets. As Emerging Markets (EM) have become more correlated with Developed Markets over the years, the diversification benefits of EM investing have largely diminished. • Frontier Markets, countries who
Slide 13: Current valuations in Mainland China are lower than the US
A-Share Characteristics Price/Earnings Ratio of KraneShares Bosera MSCI China A Share ETF Current Valuations in the (12/31/2014-6/30/2019) Mainland Chinese equity market are lower than those in the US 24 equity market. 22 KBA is currently close to its long run Price- Earnings (P/E)1 average. 20 18 K
Slide 14: Foreign investors and Northbound Connect flows vs. KBA performance
A-Share Characteristics Foreign investors largely refrained from buying the dip in Mainland equities surrounding the COVID- 19 pandemic and have been allocating to catch up with the market rebound since its bottom in mid- March. Year to date, foreign investors have bought $15.27 billion* worth of A-
Slide 15: Key Fund Information: KraneShares MSCI China A Share UCITS ETF
Key Fund Information KraneShares MSCI China A Share London Stock UCITS ETF (LSE: KBA) Exchange Exchange Top Ten Holdings as of 30/Jun/2020 % of Fund The Fund’s Holdings Are Subject to Change. Management Fee 40bps KraneShares MSCI China A Share UCITS ETF is “A sub fund of KWEICHOW MOUTAI CO LTD-A 5.7
Slide 16: Conclusion: Potential Full Inclusion of China A-Shares Within the MSCI EM Index
Potential Full Inclusion of China A-Shares Conclusion: Within the MSCI Emerging Markets Index • On June 1, 2018, MSCI commenced the multi-year process of including China A-Shares into their Global Standard Indexes. Others 23% China • This rebalance has triggered what may be one of the 29% largest as
Slide 17: Index Definitions
Index Definitions: MSCI China Index: captures large and mid cap representation across China H shares, B shares, Red chips and P chips. MSCI All China Investable Market Index (IMI): captures large, mid and small cap representation across all China securities that are listed in China and Hong Kong, th
Slide 18: Important Notes
Important Notes Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before investing. This and additionalinformation can be found in the Funds' full and summary prospectus, which may be obtained by visiting www.kraneshareseu.com. Read the prospectus carefully befo