, July 29, 2020
/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, today announced the launch of the KraneShares MSCI China ESG Leaders ETF (Ticker: KESG)
on the New York Stock Exchange.
KESG tracks the MSCI China ESG Leaders 10/40 Index, a capitalization-weighted index that provides exposure to large and mid-cap companies in China
with high Environmental, Social, and Governance ratings relative to their sector peers. KESG's index provider, MSCI
, is the number one provider of ESG, Socially Responsible Investment (SRI) and, corporate governance indexes based on a survey of global institutions.1
Over the past decade, a "New China" economy has developed with services surpassing manufacturing as the most significant contributor to China's
Typically, companies aligned with the "New China" economy experience higher growth than companies from China's
legacy sectors. MSCI's ESG methodology not only identifies more socially responsible investment opportunities, but it can also be an effective filter for capturing companies aligned with the "New China" economy.
Since its inception in July 2013
, the MSCI China ESG Leaders Index has outperformed the MSCI China Index by 76%. The 5-year annualized return of the MSCI China ESG Leaders Index was 10.51% as compared to just 5.32% from the MSCI China Index.3
"Across markets and strategies, investments with high ESG ratings have become a priority to many investors – China
is no exception," said Jonathan Krane
, CEO of KraneShares. "We are proud to partner with MSCI, a global leader in ESG indexing, to deliver a China
-focused ESG strategy to our clients with the US-listing of the KraneShares MSCI China ESG Leaders ETF (Ticker: KESG)."
For more information about KESG, visit kraneshares.com/kesg,
or talk to your financial advisor. 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 ETFs represent innovative, first to market strategies that have been developed based on the firm and its partners' deep knowledge of investing. These strategies allow investors to stay current on global market trends and provide meaningful diversification. Krane Funds Advisors, LLC is majority owned by China International Capital Corporation (CICC).1.
Data from MSCI as voted by 1,300 participants of the SRI Connect and Extel Survey in 20182.
Bloomberg as of June 21, 20193.
Data from Bloomberg as of June 30, 2020
. Note: The MSCI China ESG Leaders Index is highlighted to display a longer performance track record of ESG in China
and is for illustrative purposes only. KESG's benchmark is the MSCI China ESG Leaders 10/40 Index, incepted November 8, 2019
, which is different than the MSCI China ESG Leaders Index. Since its inception, the net return for the MSCI China ESG Leaders 10/40 Index performance was 18.14% as of 7/17/20. The two indexes may perform differently. Index returns are for illustrative purposes only and do not represent actual Fund performance. Index returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.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 before investing.
Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. 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. To achieve its investment objective the Fund 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 Fund may underperform other similar funds that do not consider conscious company/ESG guidelines when making investment decisions. The Fund is non-diversified.
Although the information provided in this document has been obtained from sources which Krane Funds Advisors, LLC believes to be reliable, it does not guarantee accuracy of such information and such information may be incomplete or condensed.
The KraneShares ETFs are distributed by SEI Investments Distribution Company (SIDCO), which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Fund. [R_US_KS_SEI]
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SOURCE Krane Funds Advisors, LLC