NEW YORK, Aug. 22, 2019 /PRNewswire/ -- Krane Funds Advisors, LLC, ("KraneShares"), a global asset management firm known for its China-focused exchange-traded funds (ETFs) and innovative China investment strategies, announced the launch of the Krane Platform, a central hub for Krane's growing service offering. The platform includes:
China Last Night: A daily blog produced by KraneShares research team led by Chief Investment Officer Brendan Ahern. Daily posts cover top news and events that moved China's capital markets the night before. This daily recap provides color on China's equity, fixed income, and currency markets performance. The analysis includes local broker insights, policy, trade, public company announcements, and sector performance.
KraneShares UCITS: KraneShares launched a UCITS platform to meet European demand for its China-focused investment strategies. The first two funds to launch are the KraneShares CSI China Internet UCITS ETF (ticker:KWEB LN) and the KraneShares MSCI China A-Share UCITS ETF (ticker:KBA LN)
KFA Funds: is a premier platform for developing and delivering differentiated, high-conviction investment strategies to global investors. The first fund under this division is The Quadratic Interest Rate Volatility and Inflation Hedge ETF (IVOL) launched in collaboration with Quadratic Capital Management led by Chief Investment Officer Nancy Davis. Additional funds include KFA Large Cap Quality Dividend Index ETF (ticker:ticker::KLCD) and the KFA Small Cap Quality Dividend Index ETF (ticker:ticker::KSCD). KLCD and KSCD track the Russell Dividend Select Equal Weight Indexes designed to capture a concentrated portfolio of constituents demonstrating increased dividends and positive momentum.
"With the launch of our China Last Night blog and KraneShares UCITS platform, we are deepening our commitment to providing world-class China-focused research and investment products," said Jonathan Krane, Chief Executive Officer of KraneShares. "At the same time, we are excited to launch KFA Funds. KFA Funds is our platform for developing and delivering differentiated, high-conviction investment strategies."
KFA Funds have accumulated over $100 million in assets under management since launching in May 2019.
About Krane Funds Advisors, LLC
Krane Funds Advisors, LLC is the investment manager for KraneShares and KFA Funds ETFs. We strive to provide innovative, first to market strategies that have been developed based on our strong partnerships and our deep knowledge of investing. We help investors stay current on global market trends and aim to provide meaningful diversification. Krane Funds Advisors, LLC is majority-owned by China International Capital Corporation (CICC).
KraneShares US registered China-focused ETFS and KFA Funds (collectively "KraneShares ETFs") are distributed by SEI Investment Distribution Company (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456, which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Funds, or DMS, the distributor for the KraneShares UCITS.
Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' full & summary prospectus. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. ETF shares are not redeemable with the issuing fund other than in large Creation Unit aggregations. Instead, investors must buy or sell ETF Shares in the secondary market with the assistance of a stockbroker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling. The NAV of the Fund's shares is calculated each day the national securities exchanges are open for trading as of the close of regular trading on the New York Stock Exchange ("NYSE"), normally 4:00 p.m. Eastern time (the "NAV Calculation Time"). Shares are bought and sold at market price (closing price) not NAV. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined).
The Funds are subject to political, social or economic instability within China which may cause decline in value. Fluctuations in currency of foreign countries may have an adverse effect to domestic currency values. Emerging markets involve heightened risk related to the same factors as well as increase volatility and lower trading volume.
Narrowly focused investments typically exhibit higher volatility. Internet companies are subject to rapid changes in technology, worldwide competition, rapid obsolescence of products and services, loss of patent protections, evolving industry standards and frequent new product productions. Such changes may have an adverse impact on performance. Technology companies may be subject to severe competition and rapid obsolescence. The KraneShares CSI China Internet ETF, the KraneShares MSCI One Belt One Road ETF, the KraneShares Zacks New China ETF, the KraneShares Emerging Markets Consumer Technology ETF, the KraneShares MSCI China Environment ETF, the KraneShares Electric Vehicles and Future Mobility Index ETF, the KraneShares MSCI All China Health Care Index ETF, the KraneShares CCBS China Corporate High Yield Bond USD Index ETF, and the KraneShares Emerging Market Healthcare Index ETF are non-diversified.
The ability of the KraneShares Bosera MSCI China A ETF, the KraneShares MSCI All China Index ETF, the KraneShares MSCI One Belt One Road ETF, the KraneShares Emerging Markets Consumer Technology ETF, the KraneShares Electric Vechicles and Future Mobility Index ETF, the KraneShares MSCI All China Health Care Index ETF, and the KraneShares Emerging Market Healthcare Index ETF to achieve their respective investment objectives is dependent, in part, on the continuous availability of A Shares and the ability to obtain, if necessary, additional A Shares quota. If a Fund is unable to obtain sufficient exposure to limited availability of A Share quota, the Fund could seek exposure to the component securities of the Underlying Index by investment in other types of securities. The funds may in invest in derivatives, which are often more volatile than other investments and may magnify the Funds' gains or losses.
The KraneShares E Fund China Commercial Paper ETF & The KraneShares CCBS China Corporate High Yield Bond USD Index ETF are subject to interest rate risk, which is the chance that bonds will decline in value as interest rates rise. The components of the securities held by these Funds will be rated by Chinese credit rating agencies, which may use different criteria and methodology than U.S. entities or international credit rating agencies. The Fund may invest in high yield and unrated securities, whose prices are generally more sensitive to adverse economic changes and consequently more volatile. These Funds are subject to industry concentration risk and is non-diversified. Narrowly focused investments typically exhibit higher volatility.
The KraneShares CCBS China Corporate High Yield Bond USD Index ETF invests in perpetual bonds, which offer fixed return with no maturity date. Perpetual bonds can be more volatile than other types of bonds that have a maturity date and may be more sensitive to changes to interest rates.
The KraneShares CCBS China Corporate High Yield Bond USD Index ETF depends on the CIBM Program to invest directly in RMB Bonds. There is no guarantee the Fund will be able to continue to participate in the program.
The KraneShares MSCI All China Health Care Index ETF and the KraneShares Emerging Market Healthcare Index ETF invests primarily in the health care industry. The profitability of companies in the healthcare sector may be affected by government regulations and government healthcare programs, government reimbursement for medical expenses, increases or decreases in the cost of medical products and services, limited product lines, increased emphasis on the delivery of healthcare through outpatient services and product liability claims. Many healthcare companies are heavily dependent on patent protection, which may be time consuming and costly, and the expiration of a company's patent may adversely affect that company's profitability. Healthcare companies are subject to competitive forces that may result in pricing pressure, including price discounting, and may be thinly capitalized and susceptible to product obsolescence. Many new products in the healthcare sector require significant research and development and may be subject to regulatory approvals, which may be time consuming and costly and with no guarantee that the product will come to market.
KSCD invests in small-capitalization companies. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility. KSCD is subject to liquidity risk, meaning that certain investments may become difficult to purchase or sell at a reasonable time and price. If a transaction for these securities is large, it may not be possible to initiate which may cause the Fund to suffer losses. The Funds are non-diversified.
There is no guarantee that issuers of the stocks held by the Fund will declare dividends in the future or that, if declared, such dividends will remain at current levels or increase over time.
IVOL's derivatives investments involve risks. The derivatives used by IVOL may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss. The prices of options can be highly volatile and the use of options can lower total returns. OTC options generally have more flexible terms negotiated between the buyer and the seller. As a result, such instruments generally are subject to greater credit risk and counterparty risk. OTC instruments also may be subject to greater liquidity risk. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer term debt securities. IVOL seeks to mitigate the risk associated with the potential impact of a steepening swap curve ("curve risk") on the performance of U.S. government bonds by investing in products designed to appreciate in value when the swap curve steepens. IVOL's use of such instruments is intended to mitigate the curve risk and is not intended to mitigate credit risk, or non-curve interest rate risk. There is no guarantee that IVOL's investments will completely eliminate the curve or inflation risk of the long positions in U.S. government bonds. In addition, when the swap curve flattens, the Fund's investments will generally underperform a portfolio comprised solely of the U.S. government bonds. In a flattening curve environment, IVOL's hedging strategy could result in disproportionately larger losses in IVOL's options as compared to gains or losses in the U.S. government bond positions attributable to interest rate changes. IVOL's exposure to derivatives tied to interest rates subjects IVOL to greater volatility than investments in traditional securities, such as stocks and bonds. Investing in derivatives tied to interest rates, including through options tied to the shape of the swap curve, is speculative and can be extremely volatile. IVOL is non-diversified.
Indices are unmanaged and do not include the effect of fees. One cannot invest directly in an index. R_KS_SEI