Kuwait Projects Company KSCC (KPRO)

Overview

This financial product focuses on investing primarily in a specific segment of the market, namely, the Chinese internet sector. By directing at least 80% of its net assets, as well as employing borrowings for investment purposes, into the KraneShares CSI China Internet ETF, the fund aims to leverage the growth and potential of Chinese internet companies. Additionally, the fund invests in options, including FLEX options, to potentially enhance returns or manage risk related to its primary investments in the underlying ETF. However, it's important to note that it is classified as non-diversified, indicating that it may focus its investments more narrowly than a diversified fund would, potentially increasing the risk of volatility or loss.

Products and Services

The fund primarily offers investment in two types of financial instruments related to the KraneShares CSI China Internet ETF:

• KraneShares CSI China Internet ETF (Underlying ETF)

  This is the primary investment vehicle of the fund, constituting at least 80% of its net assets plus any borrowings for investment purposes. The underlying ETF targets the Chinese internet sector, aiming to capture growth from internet and internet-related companies within China—a market that has seen rapid expansion and increasing global influence. Investing in this ETF allows exposure to a dynamic and potentially high-growth sector of the Chinese economy.

• Options and FLEX Options

  Apart from the underlying ETF, the fund also invests in options, including FLEX options, that reference the underlying ETF. These financial derivatives provide the fund with additional strategies to potentially enhance returns or protect against downside risk. Options are contracts that give the holder the right, but not the obligation, to buy or sell the underlying asset at a predetermined price within a specific timeframe. FLEX options are customizable options that provide the flexibility to specify various terms such as exercise prices, styles, and expiration dates. By utilizing these instruments, the fund aims to achieve more tailored risk management and investment outcomes.