KraneShares MSCI China Clean Technology Index ETF · AMEX:KGRN
KraneShares MSCI China Clean Technology Index ETF — KraneShares — Investor Presentation (September 2020)
19 slides from KraneShares MSCI China Clean Technology Index ETF's investor presentation, Sep 30, 2020
Slide 1: MSCI China A-Share Inclusion: A Long Term Catalyst For The Mainland Chinese Equity Market
KBA 9/30/2020 MSCI China A-Share Inclusion: A Long Term Catalyst For The Mainland Chinese Equity Market Overview of the KraneShares Bosera MSCI China A Share 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. Our suite of China focused ETFs provides investors with solutions to capture China’s importance as an essential element of a well-designed investment portfolio. We str
Slide 3: KBA Investment Strategy and MSCI Inclusion Overview
Introduction KBA Investment Strategy: 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 2000 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 9/30/2020. 2 Based on latest P&I AUM data and MSCI clients as of March 2018, retri
Slide 8: MSCI's Global Standard definition of China represents a small portion of 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 China A-Shares inclusion announcement, February 28, 2019
Inclusion Overview On February 28, 2019, MSCI made a larger than expected China A-Shares inclusion announcement. MSCI increased the inclusion factor of China A-Shares in their Global Standard Indexes from 5% to 20% in2019. Currently, $1.5 trillion track the MSCI EM Index. Up to $360B are expected to
Slide 10: MSCI China A Index has distinct 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
A-Share Characteristics China Mainland Market Capitalization and 30-day Average Trading Volume Decile Breakdown as of 12/31/2019 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. 93% • There are currently 4,363
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 whos
Slide 13: Current valuations in Mainland China lower than US equity market
A-Share Characteristics Price/Earnings Ratio of KraneShares Bosera MSCI China A Share ETF Current Valuations in the (9/30/2015-9/30/2020) Mainland Chinese equity market 30 are lower than those in the US 28 equity market. 26 KBA’s valuation is currently attractive 24 compared to that of the S&P 500 I
Slide 14: 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, for the most part, allocated to catch up with the market rebound since its bottom in mid-March. Year to date, foreign investors have bought $13.5 billion*
Slide 15: KraneShares Bosera MSCI China A Share ETF
KraneShares Bosera MSCI China A Share ETF Fund Details Data as of 9/30/2020 Top 10 Holdings as of Ticker % 9/30/2020 Holdings are Investment Strategy: Primary Exchange NYSE subject to change. KBA is benchmarked to the MSCI China A Index which captures CUSIP 500767405 KWEICHOW MOUTAI CO LTD-A 600519
Slide 16: Conclusion: Potential Full Inclusion of China A-Shares Within 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 USD Net Index: captures large and mid cap representation across China H shares, B shares, Red chips and P chips. MSCI ACWI Market Cap Weighted USD Net Index: captures large and mid cap representation across 23 Developed Markets (DM) and 23 Emerging Markets (EM) countrie
Slide 18: Term Definitions
Term Definitions: Investable Market Index (IMI): Refers to an index consisting of stocks that have been determined by MSCI to be suitable for international investors. Qualified Foreign Institutional Investor (QFII/RQFII):The Qualified Foreign Institutional Investor program grants access to China’s d
Slide 19: 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.kraneshares.com. Read the prospectus carefully befor