NEW YORK, Nov. 8, 2017 /PRNewswire/ -- Krane Funds Advisors, LLC, ("KraneShares") a U.S. asset management firm known for its China focused KraneShares exchange traded funds (ETFs) and innovative China investment strategies, announced the launch of the KraneShares MSCI China Environment ETF (Ticker: KGRN). KGRN holds Chinese companies that derive at least 50% of their revenues from environmentally beneficial products and services.
China has grown to become the second largest economy and second largest stock market in the world by market capitalization. China's economic growth has triggered an increase in automobile ownership, construction projects and energy consumption, particularly coal consumption; all currently at their decade highs. China's rapid economic development has impacted the environment with current levels of air and water pollution higher than those recommended by the World Health Organization.
In order to address pollution concerns, China has set ambitious goals to expand environmental protections. China is already the world leader in total renewable energy capacity, at 28% of total global capacity1, yet they plan to spend an additional $360 billion on renewable energy by 20202. At the same time China aims to achieve 50% commercial green building certification by 20203. Meeting these standards would create as much new renewable energy capacity as the entire US electricity system4, and half of the world's green building floor space3.
"China is currently undergoing an environmental renaissance, pledging hundreds of billions of dollars to environmental protection projects and policies," said Jonathan Krane, Chief Executive Officer of KraneShares. "We believe Chinese companies focused on contributing to a more environmentally sustainable economy may potentially benefit from this focused initiative."
KGRN seeks to track the MSCI China IMI Environment 10/40 Index. The Index is based on five key Clean Technology environmental themes: Alternative Energy, Sustainable Water, Green Building, Pollution Prevention and Energy Efficiency. Company selection is based on environmental, social and governance (ESG) data from MSCI ESG Research. MSCI is a leading provider of ESG research and indexes according to the 2016 Independent Research in Responsible Investment (IRRI) survey of 1,200 participants conducted by SRI Connect and Extel.
"The MSCI China IMI Environment 10/40 Index highlights MSCI's commitment to helping global investors implement their responsible investment objectives," said Christine Berg, CFA, Managing Director at MSCI. "The index incorporates MSCI ESG Research and is comprised of Chinese companies that focus on contributing to a more environmentally sustainable economy."
KraneShares will be holding a live webinar on Thursday, November 30th at 11:00am EST. During the webinar we will review The KraneShares MSCI China Environment ETF (Ticker: KGRN), the evolution of China's environmental protection initiatives, and the companies that may potentially benefit from positive environmental policy in China. Click here to register for the webinar.
About Krane Funds Advisors, LLC
Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. Our suite of China focused ETFs provides investors with solutions to capture China's importance as an essential element of a well-designed investment portfolio. We strive to provide innovative, first to market strategies that have been developed based on our strong partnerships and our deep knowledge of investing. We help investors stay up to date on global market trends and aim to provide meaningful diversification. Krane Funds Advisors, LLC is majority owned by China International Capital Corporation (CICC).
For more information please visit: www.kraneshares.com.
- REN21's Renewables 2017 Global Status Report (GSR) pg 166
- Michael Forsythe, "China Aims to Spend at Least $360 Billion on Renewable Energy by 2020", The New York Times, 1/5/2017. Retrieved 7/21/2017.
- UTC, "Accelerating the World's Largest Green Building Market: China." Oct. 4, 2016
- Barbara Finamore, "Paris Climate Agreement Explained", National Resource Defense Council, Dec. 12, 2015
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. 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 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.
SOURCE Krane Funds Advisors, LLC