KraneShares CSI China Internet UCITS ETF AccumGBP · LSE:KWBP
KraneShares CSI China Internet UCITS ETF AccumGBP — KraneShares — Investor Presentation (May 2021)
22 slides from KraneShares CSI China Internet UCITS ETF AccumGBP's investor presentation, May 26, 2021
Slide 1: Capturing China's Brightest Science & Technology STARs
KSTR Capturing China’s Brightest Science & Technology STARs Overview of the KraneShares ICBCCS SSE STAR Market 50 Index UCITS ETF (Ticker: KSTR) [email protected] 1
Slide 2: Introduction to KraneShares
Introduction to KraneShares About KraneShares 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 provid
Slide 3: Investment Strategy: KSTR
Investment Strategy: KSTR KSTR seeks to track the performance of the Shanghai Stock Exchange (SSE) Science and Technology Innovation Board 50 Index (STAR 50 Index). The Index is comprised of the 50 largest companies listed on the SSE Science and Technology Innovation Board (STAR Market) as determine
Slide 4: The China A-Share market is too big to ignore
Why China? The China A-Share market is too big to ignore Even though China is the world’s second largest economy and stock market, China A-Shares are still underrepresented in global capital markets. Top 5 Country Weights in the MSCI All Country World Top 5 Country Weights in the MSCI All Country Wo
Slide 5: Characteristics of Chinese listing venues
Why China? Characteristics of Chinese listing venues 3M Average Daily Freely accessible to No. of Listed Free-float Market Cap Market Volume foreign investors* Companies ($mm) ($mm) (%) Mainland China 5,111 82,828 4,437,535 80% Shanghai (Main) 2,032 33,079 2,175,991 80% Shanghai (STAR Market) 229 19
Slide 6: The STAR Market has been called the 'Nasdaq of China'
Why China? The STAR Market has been called the ‘Nasdaq of China’, and may follow a similar growth trajectory Nasdaq Composite Index’s First 20 Years Performance History 50,000 45,000 In 1971 Nasdaq had a market cap 40,000 of $140 billion, while the NYSE had a market cap of $1 trillion. 35,000 Growth
Slide 7: The STAR Market primarily supports high-tech infrastructure and strategic emerging industries
STAR Market The STAR Market primarily supports high-tech infrastructure and strategic emerging industries Companies included in the STAR Market seek to integrate several key themes within their core business. Key Themes Emerging Industries Artificial Intelligence High-tech Internet Manufacturing Hig
Slide 8: The STAR Market has been a top location for new listings
STAR Market The STAR Market has been a top location for new listings even amid recent market uncertainty • The STAR Market has quickly gained recognition as one of the world’s top IPO STAR Market IPO Count Since Launch venues. 1 9 • Listings on the STAR Market accounted for 8 47% of capital raised a
Slide 9: STAR Market quick facts and unique listing rules
STAR Market The STAR Market’s unique listing rules and notable success since launching have quickly made the exchange an attractive option for China’s leading science and technology unicorns STAR Market Quick Facts President Xi Jinping introduced the concept of the STAR Market to create a new fundin
Slide 10: The STAR Market offers more inclusive standards compared to other markets in China
STAR Market The STAR Market offers more inclusive standards compared to other markets in China Historically, early-stage Chinese startups were forced to list abroad due to stringent listing requirements in China. The STAR market allows such companies to list on a local exchange. Mainland Chinese Exc
Slide 11: Five differentiated listing standards of the STAR Market
STAR Market By meeting one of the five differentiated listing standards, applicants are eligible for listing on the STAR Market The 5 Core Listing Standards of the STAR Market Applicants must meet one of the five listing standards Operating • Unlike other Mainland Chinese boards, Listing Standard Pr
Slide 12: China's unicorn pipeline reveals potential future IPOs
STAR Market China’s unicorn pipeline reveals potential future IPOs • A unicorn company, or unicorn startup, is a Top 10 Global Unicorn Ranking1 private company with a valuation over $1 billion.1 Rank Company Market Val. Industry Headquarters ($B) • Currently, three of the world's five largest 1 Byte
Slide 13: STAR Index methodology expedites eligibility for largest unicorns
STAR 50 Index STAR 50 Index methodology is designed to expedite eligibility for China’s largest unicorns Eligibility Timeline for STAR 50 Index Inclusion: Eligible for inclusion after… 1 Month for securities among top 3 by average daily The Index market value since initial listing prioritizes the la
Slide 14: The Index consists primarily of new economy sectors
KSTR The Index consists primarily of “new economy” sectors, with a combined weight of over 80% in information technology and healthcare STAR 50 Index Sector Breakdown Consumer Discretionary 5.9% Industrials 6.6% Materials 10.4% Health Care 13.4% Information Technology 63.7% Data from Wind as 30/Apr/
Slide 15: Chinese government policies aim to make China more self-sufficient in chip manufacturing
STAR Market Chinese government policies aim to make China more self-sufficient in chip manufacturing • China established a new national semiconductor fund China's semiconductor annual trade2 worth $28.9 billion in 2019, aimed at closing the 350 technology gap with the US.1 300 • As stated in the “Ma
Slide 16: Substantial R&D investment shows STAR Market companies' commitment to innovation
STAR Market Substantial R&D investment shows STAR Market companies’ commitment to innovation and development • R&D investment for the 50 constituent companies included in the STAR 50 Index at the time of launch was, on average, Average R&D percent of revenue across 13% of operating income, compared
Slide 17: STAR 50 top 10 constituents: high R&D investment and strong revenue growth
KSTR STAR 50 top 10 constituents have shown high R&D investment and strong revenue growth STAR Companies U.S. Companies U.S. Comparable Top 10 Index Constituents Weight % Primary Business 1 Year Average 1 Year Average R&D R&D Expenditure Business Revenue Growth Revenue Expenditure % % of Sales Rate
Slide 18: Companies listed on the STAR Market help advance China's national strategy goals
KSTR Companies listed on the STAR Market help advance China’s national strategy development goals National New Infrastructure Development Initiative Goals1 Theme Goals Example Index Constituents Ensure nationwide 5G coverage by 2025, with plans to have 5 million 5G base 5G stations across the countr
Slide 19: STAR companies exhibit low correlation to other global markets
STAR 50 Index STAR 50 companies exhibit low correlation to other global markets Index Correlation to the STAR 50 Index Nasdaq MSCI ACWI MSCI EAFE MSCI EM MSCI USA MSCI China MSCI Frontier Composite STAR 50 MSCI ACWI 1 MSCI EAFE 0.91 1 MSCI EM 0.87 0.79 1 MSCI USA 0.97 0.80 0.79 1 MSCI China 0.69 0.5
Slide 20: KraneShares ICBCCS SSE STAR Market 50 Index UCITS ETF fund details
Fund Details As of 26/May/2021 Top Ten Holdings as of 26/May/2021. The Fund’s Listed Exchange LSE Holdings are Subject to Change. Ticker % KraneShares ICBCCS SSE STAR Market 50 Index SEDOL BMBNL20 UCITS ETF (Ticker: KSTR) ISIN (Class USD Shares) IE00BKPJY434 – – – KSTR seeks to track the performance
Slide 21: Index Definitions
Index Definitions: Shanghai Stock Exchange (SSE) Science and Technology Innovation Board 50 Index (STAR 50 Index): is comprised of the 50 largest securities listed on SSE Science and Technology Innovation Board (STAR Market) as determined by highest market capitalization and liquidity. Constituents
Slide 22: Important Notes
Important Notes: 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.eu. Read the prospectus carefully befor