NEW YORK, June 4, 2021 / PRNewswire / – Krane Funds Advisors, LLC, (“KraneShares”), a global asset management firm known for its China-targeted and innovative exchange traded funds (ETFs) China investment strategies, today announced the launch of KraneShares Bloomberg Barclays China Bond Inclusion ETF (symbol: KBND).
KBND provides investors with access to RMB-denominated securities included in the Bloomberg Barclays Global Aggregate Index, an index with assets in the billions of dollars that are estimated to passively track or be actively managed against. to him.1 In december 2020, Bloomberg Barclays Completed Inclusion Process Of Chinese RMB Denominated Securities In Benchmark2.
Analysts estimated that inclusion exceeded 150 billion dollars fresh money in from China onshore bond market3 and significantly broadened the universe of international investors participating in the market. KBND is the first US-listed ETF to track the Bloomberg Barclays China Inclusion Focused Bond Index, which covers issuers of China included in the Bloomberg Barclays Global Aggregate Index with ratings from international rating agencies.4
from China $ 17 trillion The bond market is the second in the world.5 Yield on from China government bonds are significantly higher than government bond yields in many developed markets. China has a sovereign credit A +4 10-year government bond rating and yield comfortably above 3%.4 from China the market for government bonds, government bonds and investment grade bonds can offer attractive returns at a level of sovereign risk comparable to Japan.6 Additionally, from China government bonds have been a source of stability during the global pandemic, and from China currency was among the least volatile in emerging countries Asia in 2020.4
“With attractive yields, low correlations, low sovereign risk and ratings from international agencies, we believe from China bond market presents an irresistible opportunity, ”said Jonathan krane, CEO of KraneShares. “We are proud to partner with Bloomberg on KBND to bring new access to from China fixed income market to our clients.
“The inclusion of RMB-denominated bonds in Bloomberg Fixed Income Indices is an important development for from China integration with global financial markets “, Steve berkley, CEO of Bloomberg Index Services Limited (BISL), explained. “We are delighted to partner with KraneShares to make the Bloomberg Barclays China Inclusion Focused Bond Index investable through KBND.
The launch was achieved by converting and renaming the KraneShares E Fund China Commercial Paper ETF (symbol: KCNY). Effective June 4, 2021, the Fund replicates the Bloomberg Barclays China Inclusion Focused Bond Index.
For more information on KBND, visit kraneshares.com/kbnd or email [email protected].
Krane Funds Advisors, LLC is the investment manager of the KraneShares ETFs. Our suite of ChinaMarket-driven ETFs provide solutions for investors to capture from China importance as an essential part of a well-designed investment portfolio. We strive to deliver innovative and market-leading strategies, developed on the basis of our strong partnerships and in-depth knowledge of investing. We help investors stay on top of global market trends and aim to provide meaningful diversification. Krane Funds Advisors, LLC, is a signatory of the United Nations-backed Principles for Responsible Investment (A PRI). The company is majority owned by China International Capital Corporation (CICC).
- Chen, Sally. “China Deepens Global Financial Ties By Joining Benchmarks,” IMF. June 19, 2019.
- “Bloomberg Confirms Inclusion of China in Bloomberg Barclays Global Aggregate Indices”, Bloomberg Professional Services. January 30, 2019.
- Financial Time. “Bloomberg Adds Chinese Government Bonds to Flagship Index”, 03/31/2021.
- Bloomberg data as of 04/30/2021
- Data from the Bank for International Settlements as of 09/30/2020.
- S&P rating. According to S&P Global Ratings as of 04/30/2021.
Diversification does not ensure a profit or a guarantee against loss.
Carefully consider the investment objectives, risk factors, fees and expenses of the Funds before investing. This and other information can be found in the full prospectus and summary of the Funds, which can be obtained by visiting www.kraneshares.com. Read the prospectus carefully before investing.
Disclosure of risks
Investing involves risks, including the possible loss of capital. 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 can lead to a decrease in value. Fluctuations in the currencies of foreign countries may adversely affect the value of national currencies. Emerging markets involve increased risk related to the same factors as well as increased volatility and lower trading volume.
The KraneShares Bloomberg Barclays China Bond Inclusion ETF is subject to interest rate risk, which is the possibility that the value of bonds will fall as interest rates rise. The Fund is subject to sovereign and quasi-sovereign debt risk. The government authority that controls the repayment of sovereign and quasi-sovereign debt may be unwilling or unable to repay principal and / or interest when due. The Fund may invest in perpetual bonds, which offer a fixed return with no maturity date. Perpetual bonds can be more volatile than other types of bonds that have a maturity date and can be more sensitive to changes in interest rates. The Fund depends on the China Interbank Bond Market program to invest directly in RMB bonds. There can be no assurance that the Fund will be able to continue to participate in the program. The Fund may invest in high yielding and unrated securities, the prices of which are generally more sensitive to adverse economic changes and therefore more volatile. The Fund is subject to sector concentration risk and is not diversified. Closely targeted investments tend to exhibit higher volatility.
KraneShares ETFs are distributed by SEI Investments Distribution Company (SIDCO), which is not affiliated with Krane Funds Advisors, LLC, the Fund’s investment adviser, any sub-advisor of the Funds or Bloomberg Index Services Limited.
SOURCE Krane Funds Advisors, LLC