NEW YORK, Oct. 23, 2014 /PRNewswire/ -- KraneShares and
Bosera Asset Management announce KBA's transition to the new MSCI
China A International Index on October
24th, 2014. KBA is the only US listed
MSCI-benchmarked Exchange Traded Fund providing exposure to the
mainland Chinese markets.¹
"The late October launch of the Shanghai-Hong Kong Stock Connect
program will allow foreign investors to access the onshore market
for the first time without Qualified Foreign Institutional Investor
quota (QFII)," said Brendan Ahern,
Managing Director of KraneShares "We believe the Connect program
will remove investment barriers that have historically blocked
index providers like MSCI from adding the onshore Chinese markets
to their emerging market and global indices. With $1.3 trillion benchmarked to the MSCI Emerging
Markets Index2, full inclusion of the MSCI China A
International Index could see significant flows into the securities
KBA owns today."3
Jonathan Krane, CEO of
KraneShares, added "KBA's strategic transition to the new MSCI
index allows it to hold the mainland securities slated to be owned
by broad based MSCI indices ahead of their possible
inclusion. In addition to the possible upgrade, the mainland
market offers very inexpensive valuations."4
"We have great partners on this fund," said Brendan Ahern, "MSCI Indices have over
$9 trillion of assets benchmarked to
them.5 Bosera has over $32
billion in assets under management and is one of the top
asset managers in mainland China.6 With MSCI and Bosera's
collaboration, KBA provides investors access to the mainland
markets with industry leading partners."
¹According to ETF.com and ETFtrends.com KBA is the only US
listed MSCI China A ETF as of October 14,
2014.
2 There is $1.3 trillion
benchmarked to the MSCI Emerging Markets Index as of
March 31 2014, as reported
June 2014, by eVestment, Lipper and
Bloomberg.
3 According to MSCI Data as of Nov 2013, the full inclusion of China A-shares in
the MSCI Emerging Markets Index could rise China's total weight from 20% to 30%.
4As of September 30, 2014
the MSCI China A Index has a Price/Earnings Ratio (P/E) of 12.56
versus MSCI All Country World Index's P/E of 17.17 and MSCI
USA Index's P/E of
18.91.
5As of March 31 2014, as
reported June 2014, by eVestment,
Lipper and Bloomberg.
6According to Bosera data, and reported in Pensions
& Investments, March 31, 2014
About KraneShares:
KraneShares, a product of Krane Funds Advisors, is focused on
serving global investors with ETFs for the next-wave of
China's development. Founded in
2011, our New York based firm
offers proprietary ETFs constructed to give US and global investors
broad, diverse and quality exposure to China's historic growth story.
KraneShares
New York, NY www.kraneshares.com
– info@kraneshares.com
©2014 KraneShares
Carefully consider the Funds' investment objectives, risk
factors, charges and expenses before investing. This and
additional information can be found in the Funds' summary or
full prospectus, which may be obtained by visiting
http://kraneshares.com/resources/kraneshares_kba_prospectus_2014.pdf
Read the prospectus carefully before investing.
For current holdings of KBA, visit
http://kraneshares.com/kba/#full_holdings
Investing involves risk, including possible loss of principal.
There can be no assurance that the Fund 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
effect 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 and investments in smaller
companies 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 ability of the KraneShares Bosera MSCI China A ETF to
achieve its investment objective is dependent on the continuous
availability of A Shares and the ability to obtain, if necessary,
additional A Shares quota. If the Fund is unable to obtain
sufficient exposure due to the limited availability of A Share
quota, the Fund could seek exposure to the component securities of
the Underlying Index by investing in depositary receipts. The Fund
may, in some cases, also invest in Hong
Kong listed versions of the component securities and B
Shares issued by the same companies that issue A Shares in the
Underlying Index. The Fund may also use derivatives or invest in
ETFs that provide comparable exposures. Investments in derivatives,
including swap contracts and index futures in particular, may pose
risks in addition to those associated with investing directly in
securities or other investments, including illiquidity of the
derivatives, imperfect correlations with underlying investments,
lack of availability and counterparty risk. The use of swap
agreements entails certain risks, which may be different from, and
possibly greater than, the risks associated with investing directly
in the underlying asset. The Fund, may be concentrated in the
financial services sector. Those companies may be adversely
impacted by many factors, including, government regulations,
economic conditions, credit rating downgrades, changes in interest
rates, and decreased liquidity in credit markets. This sector has
experienced significant losses in the recent past, and the impact
of more stringent capital requirements and of recent or future
regulation on any individual financial company or on the sector as
a whole cannot be predicted.
The KraneShares ETFs are distributed by SEI Investments
Distribution Company, 1 Freedom Valley Drive, Oaks, PA 19456, which is not affiliated with
Krane Funds Advisors, LLC, the Investment Adviser for the Fund.
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SOURCE KraneShares