LONDON, Oct. 1, 2020
LONDON, Oct. 1, 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, announced today that the KraneShares CSI China Internet UCITS ETF (LSE: KWEB) surpassed USD $175 million in assets under management (AUM) since launching in November 2018. The increase in AUM comes as KraneShares launched a securities lending program to benefit KWEB's investors.
KWEB seeks to capture the compelling growth potential of China's leading, innovation-driven internet companies. The fund tracks the CSI Overseas China Internet Index, the same benchmark and strategy as KraneShares' flagship New York Stock Exchange-listed China internet ETF, which has a seven-year track record and $2.8 billion in assets under management.1
"Surpassing USD $175 million in AUM is a major achievement for the KraneShares CSI China Internet UCITS ETF," said Jonathan Krane, CEO of KraneShares. "This milestone coincides with the launch of securities lending on KWEB's holdings, which we believe makes KWEB more attractive to European and U.K. investors."
For UCITS* ETF investors, funds with securities lending programs offer the added benefit of an additional income stream. When the securities-lending income stream is juxtaposed against the management fee, the overall cost of ownership of a UCITS ETF can be thought of as being significantly reduced given the general offsetting economic impact of income versus fees.
KraneShares' three additional UCITS funds, listed below, have also entered into a Securities Lending Agency Agreement with Brown Brothers Harriman & Co. ("BBH") as Lending Agent:
Up to 50% of KWEB's assets can be lent out. Currently, 90% of net securities lending income earned is distributed directly to investors via the share price – a percentage that can only increase as KraneShares assets grow. Regardless of a security being on loan, the UCITS ETF's value includes that of the underlying security. All of the UCITS ETF's corporate action elections and income are protected for shares on loan. The income earned from securities lending is estimated and accrued daily into the ETF's NAV and is distributed on a monthly basis.
"KWEB's impressive AUM growth speaks to European and UK-based investors' appetite for innovative China investment strategies," said Dr. Xiaolin Chen, Head of KraneShares International. "We are always looking for ways to enhance the client experience. We believe the income provided from securities lending will benefit investors and make our funds even more attractive."
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' in-depth 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).
*UCITS: Undertakings for Collective Investment in transferable Securities
1. Data from KraneShares as of 9/8/2020
This information is being communicated by KraneShares, which is an appointed representative of DMS Capital Solutions U.K. Limited, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom under the reference number 503325.
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. 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.
This material is for information only and does not constitute an offer or recommendation to buy or sell any investment, or subscribe to any investment management or advisory service. You are accessing information which constitutes a financial promotion under section 21 of the Financial Services and Markets Act 2000 ("FSMA").
Any investment, and investment activity or controlled activity, to which this information relates is available only to such persons and will be engaged in only with such persons. Persons that do not have professional experience should not rely or act upon this information unless they are persons to whom any of paragraphs (2)(a) to (d) of article 49 apply to whom distribution of this information may otherwise lawfully be made.
For additional fund documentation, please visit www.DMSGovernance.com.