Krane Funds Advisors Launches China Five-Year Plan ETF

Updated

Krane Funds Advisors Launches China Five-Year Plan ETF

KraneShares CSI China Five-Year Plan ETF offers investors a unique strategy for gaining exposure to China

NEW YORK--(BUSINESS WIRE)-- Krane Funds Advisors LLC, a provider of China-focused Exchange Traded Funds (ETFs), today announced the launch on the New York Stock Exchange of KraneShares CSI China Five-Year Plan ETF (NYSE ticker: KFYP), a new ETF that provides exposure to the focus industries highlighted in China's 12th Five Year Plan.


Unique Strategy

KraneShares CSI China Five-Year Plan ETF offers a unique strategy for gaining exposure to China. Every five years China announces its fiscal and domestic spending plan for targeted growth industries. The fund's underlying index, the CSI Overseas China Five-Year Plan Index, focuses on companies in the targeted sectors of China's 12th Five-Year Plan, including technology, domestic consumption, clean energy, industrial and healthcare. In contrast, other China benchmarks tend to be dominated by financial, energy, and telecom sectors and by large, state-owned enterprises.

"Many US investors have little or no exposure to China, the second largest economy in the world. When they do invest in China directly or through broad emerging market exposure, many investment strategies provide a narrower representation of the Chinese economy due to their heavy weights in financials and energy. The KraneShares CSI China Five-Year Plan ETF provides investors with an opportunity to align themselves directly with China's current domestic investment initiatives. We endeavor to deliver compelling Chinese investment opportunities to the US marketplace." said Brendan Ahern, Managing Director of KraneShares. Mr. Ahern went on to say that "We are proud to partner with China Securities Index Co. of Shanghai, as the index provider for this ETF."

"We believe the China markets offer an excellent opportunity for US investors' portfolios. The Five-Year Plan is China's most important document and governs the direction of 1.3 billion people. We are delighted to partner with KraneShares and NYSE on delivering the KraneShares CSI China Five-Year Plan ETF to US investors." said Dr. Zhigang Ma, General Manager of China Securities Index Co.

More information on KraneShares CSI China Five-Year Plan ETF is available at: www.kraneshares.com

About China Securities Index Co. and CSI Overseas China Five-Year Plan Index

China Securities Index Co. ("CSI") is the largest index provider in mainland China. Established in 2005, CSI is a joint partnership of the Shanghai and Shenzhen Stock Exchanges. CSI is dedicated to serving the capital market and promoting financial innovation relying on the information and technical advantages of the two exchanges. CSI is focused on maintaining their leadership as the dominant provider of exchange indices and customized indices in China.

The CSI Overseas China Five-Year Plan Index is designed to measure the performance of the investable universe of publicly traded China-based companies the index sponsor, CSI, has determined will be important in the Five-Year Plan of the Chinese government. The Five-Year Plan is a series of development initiatives that have been released by the Chinese government every five years since 1953. The most recently released Five Year Plan, the Twelfth Five Year Plan (2011-2015), has proposed a focus on several areas including increasing domestic consumption; modernizing agriculture through mechanization and improvement of agricultural service businesses; encouraging stable urbanization; promoting energy saving and environmental protection; and encouraging domestic technological innovation. The Underlying Index is generally comprised of approximately 100-200 securities and was created and is maintained by CSI.

About Krane Funds Advisors

Krane Funds Advisors, LLC, ("Krane") was founded in 2011 and is based in New York City. Krane is an ETF provider and an education leader for US investors on China. Krane was developed with local insight from our Chinese partners with strategies tailored to the specific needs of US investors. Krane is focused on delivering Chinese investment opportunities to US investors by helping them navigate China's continuing economic evolution so they can invest in China with confidence.

Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' prospectus, which may be obtained byclicking here.Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal. There can be no assurance that the Funds will achieve its stated objectives. The Funds focus their investments primarily with Chinese issuers and issuers with economic ties to China. 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 affect to domestic currency values. Emerging markets involve heightened risk related to the same factors as well as increase volatility and lower trading volume. Current and future holdings are subject to risk.

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.

The KraneShares ETFs are distributed by SEI Investments Distribution Company, which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Fund.



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KEYWORDS: United States Asia Pacific North America China New York

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