KraneShares MSCI China Clean Technology Index ETF (6KS1)

Overview

The company in question operates a specialty investment fund focused on capitalizing upon the growth and sustainable initiatives within China’s industrial, utility, real estate, and technology sectors. By allocating at least 80% of its net assets towards either direct investments in its underlying index or similar economic instruments, the fund leverages market performance insights to enhance the economic sustainability of these critical sectors. It employs a modified 10/40 Constraint approach within a free-float adjusted, market capitalization weighted index strategy, aiming to maximize investor returns while adhering to a focused investment philosophy. Despite its concentrated investment approach, the fund maintains a commitment to advancing environmentally sustainable economic development within China’s burgeoning markets.

Products and Services

• Specialty Investment Funds

  These funds are designed to specifically target investments within the Chinese industrial, utility, real estate, and technology sectors which are viewed as pivotal to fostering a more environmentally sustainable economic framework. Through a strategic focus on these areas, the company aims to offer investors exposure to sectors with potential for high growth and sustainability impact.

• Market Capitalization Weighted Index Strategy

  The investment strategy primarily involves the free-float adjusted market capitalization weighting of its assets, modified to comply with the 10/40 Constraint. This strategy is crafted to optimize performance by measuring the equity market performance of select Chinese companies committed to sustainable development, thereby offering a specialized investment avenue that aligns with both financial goals and sustainability commitments.

• Non-Diversified Fund Structure

  Contrary to a diversified fund structure that spreads investments across a wide range of sectors and assets, this fund maintains a non-diversified status, concentrating its investments in a narrow selection of sectors. This approach is predicated on the belief that specialized, targeted investments in sectors critical to China’s transition to a more sustainable economy can yield superior returns for informed investors.