KraneShares Global Carbon Strategy ETF · AMEX:KRBN
KraneShares Global Carbon Strategy ETF — KFA Large Cap Quality Dividend Index ETF — Investor Presentation (September 2019)
16 slides from KraneShares Global Carbon Strategy ETF's investor presentation, Sep 30, 2019
Slide 1: The Long-Term Potential of Dividend Growth
KLCD 9/30/2019 The Long-Term Potential of Dividend Growth An Overview of the KFA Large Cap Quality Dividend Index ETF (Ticker: KLCD) info@kraneshares.com 1
Slide 2: Introduction to KFA Funds
Introduction to KFA Funds About KFA Funds KFA Funds is the premier platform for developing and delivering differentiated, high-conviction investment strategies to global investors. We are passionate about identifying and delivering groundbreaking capital market opportunities. We believe that investo
Slide 3: Investment Strategy
Investment Strategy KLCD KLCD is benchmarked to the Russell 1000 Dividend Select Equal Weight Index, which takes a smart beta1 approach to investing in US Large Cap companies. The strategy seeks to measure the performance of US companies that have KFA Large Cap Quality successfully increased their d
Slide 4: What is dividend growth?
What is dividend growth? • Dividend growth refers to the consistent increase in dividend payments over consecutive years, focusing on repeated increases not necessarily high dividend. • Breaking down a company’s sustainable growth rate* uncovers drivers of dividend growth. The sustainable growth rat
Slide 5: Advantages of Dividend Growth Strategies
Advantages of Dividend Growth Strategies Historical Compounded growth on Dampened drawdown outperformance with dividend reinvestment in declining markets lower volatility When observing US stocks that When observing S&P 500 dividend raised their dividend payouts over a growers3 during the market dec
Slide 6: Historical outperformance combined with lower volatility
Historical outperformance combined with lower volatility • Over the past 1, 5, and 10 years, S&P 500 dividend growers have overperformed the S&P 500 Index with lower volatility. • We believe this outperformance is a testament to the fact that dividend growing companies are firms with enduring invest
Slide 7: Compounded growth on dividend reinvestment
Compounded growth on dividend reinvestment • Data from Bloomberg and NYU Stern shows that from 1970 to 2018, an average of 58% of total return of the S&P 500 can be attributed to compounding growth on reinvested dividends1. • In fact, a $10,000 investment in the S&P 500 in December of 1960 would hav
Slide 8: Dampened drawdown in declining markets
Dampened drawdown in declining markets • Lower drawdown may help prevent an investor from making emotional decisions regarding their portfolio during market turmoil. Greater discipline results in dedication to the investment plan and an increased likelihood of achieving investment goals. • Dividend
Slide 9: KLCD uses a smart-beta approach
The KFA Large Cap Quality Dividend Index ETF (ticker: KLCD) uses a smart-beta approach that not only holds securities demonstrating increased dividends but also those with positive momentum. Smart-Beta Filtering Process for Constituent Selection Russell 1000 Equity Universe Select stocks from the Ru
Slide 10: Momentum is key to unlocking potentially high returns from dividend growing companies
Momentum is key to unlocking potentially high returns from dividend growing companies. • Many of the companies that have consistently increased their dividends tended to be large, old, and slow-growing. • A momentum strategy looks at acceleration in stock prices and seeks investment in companies tha
Slide 11: Stock selection has been the main driver of outperformance
The stock selection of the Russell 1000 Dividend Select Index (DS) has historically been the main driver of its outperformance of the Russell 1000 Index • The attribution analysis below shows the contributions from stock and sector selection to the relative performance of the Russell 1000 DS Index s
Slide 12: Conclusion
Conclusion • We believe dividend growth is an attractive investment theme that should be considered when constructing a portfolio. • Companies exhibiting dividend growth have Advantages of Dividend Growth Strategies historically shown the ability to pay and commitment to paying these dividends and H
Slide 13: KFA Large Cap Quality Dividend Index ETF
Top Ten Holdings as of 9/30/2019 % of Fund KFA Large Cap Quality Dividend Index ETF The Fund’s Holdings Are Subject to Change. NEXTERA ENERGY INC 1.07 Investment Strategy: Key Fund Information HASBRO INC 1.06 KLCD is benchmarked to the Russell 1000 Dividend Select Ticker KLCD NORDSON CORP 1.06 Equal
Slide 14: Terminology Definitions
Terminology Definitions Dividend Growth Rate: A company’s dividend growth rate is the rate at which that company is expected to increase its dividend payments. The dividend growth rate is the annualized percentage rate of growth that a particular stock’s dividend undergoes for a period of time. Sust
Slide 15: Index Definitions
Index Definitions S&P Total Return Index: This index tracks the performance of securities in the S&P 500 index based on both price changes and reinvested dividends. S&P Aristocrats Index: This index is designed to measure the performance of S&P 500 index constituents that have followed a policy of c
Slide 16: Important Notes
Important Notes Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' full and summary prospectus, which may be obtained by visiting www.kfafunds.com. Read the prospectus carefully before i
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