Krane Funds Advisors LLC (“KraneShares”), a provider of China-focused
Exchange Traded Funds (ETFs), today announced the launch of the
KraneShares Bosera MSCI China A Share ETF (NYSE ticker: KBA) on the New
York Stock Exchange. The fund will provide investors direct access to
Chinese securities listed on the Shanghai and Shenzhen Stock Exchanges.
This new ETF is a collaboration between KraneShares and Bosera, one of
China's largest asset managers (with $32 billion in client assets) to
license the MSCI China A Index. MSCI is the gold standard of equity
index providers globally, with approximately $8 trillion benchmarked to
its indexes1. Ninety-five percent of U.S. pension fund assets
invested in international equities are benchmarked to MSCI.2
"KraneShares Bosera MSCI China A Share ETF is the first China A Share
ETF on the NYSE to provide meaningful exposure to both large and mid cap
Chinese companies. We believe mid cap Chinese companies stand to benefit
the most from China’s shift to a domestic consumption economy and the
growth of its middle class from 300 million to 600 million people over
the next 10 years," said Jonathan Krane, Chief Executive Officer of
KraneShares. “KBA will provide global investors direct access to this
asset class, and we are excited to be working with Bosera to offer this
MSCI index-linked ETF,” said Krane.
“Recent developments in the Chinese domestic capital markets have had
wide implications for investors globally, and the MSCI China A Index
represents broad access to the opportunity set in the region,” said
Diana Tidd, Managing Director and Head of the MSCI Index Business in the
Americas. “We are pleased to be working with KraneShares and Bosera as
they introduce this new MSCI index-linked ETF that will give US
investors direct access to the China A share market.”
"KraneShares Bosera MSCI China A Share ETF is an innovative product.
China A Shares have historically had low correlation to US, European and
Japanese equities, and provide a new opportunity for global investors to
help diversify their portfolios and gain exposure to the potential
growth of China. We are pleased to partner with KraneShares and MSCI to
bring this fund to the market" said Charles Wang, Bosera’s Chief
Investment Officer.
1As of September, 2013, as reported on January 31,
2014 by eVestment, Lipper and Bloomberg
2 Intersec, 2012
About MSCI China A Index
The MSCI China A Index captures large and mid cap representation across
China securities listed on the Shanghai and Shenzhen exchanges.
About Bosera
Established on July 13, 1998, Bosera Asset Management Co., Ltd. was one
of the first five fund management companies established in China. Bosera
is an independent asset management institution serving over 12 million
investors. Total client assets under management at the end of December
2013 exceeded US$32.2 billion, including US$13.8 billion in pension
assets. Bosera's product portfolio consists of a comprehensive line of
products in the categories of equity, equity-biased, balanced, bonds,
money market and indexed products.
About KraneShares
KraneShares (www.kraneshares.com)
provides access for US investors to the Chinese capital markets through
innovative investment products. Founded in 2011, our New York based firm
offers proprietary ETFs constructed to provide US investors with broad,
diverse exposure to China’s investment opportunities. KraneShares
reflects the positive, inter-dependent economic relationship between the
United States and China. Similarly, our innovative products were
conceived as a result of our trusted and invaluable relationship with
our Chinese partners. KraneShares is focused on delivering Chinese
investment opportunities to US investors by helping them navigate
China’s historic economic evolution so they can participate in this
potential growth story through a US based, US lead platform.
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 by clicking
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 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 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.
Diversification may not protect against market loss.
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.
Copyright Business Wire 2014