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NEW YORK, Dec. 15, 2021 /PRNewswire/ -- Krane Funds Advisors, LLC, ("KraneShares") an asset management firm known for its global exchange-traded funds (ETFs) and innovative investment strategies, announced that the KraneShares Global Carbon Strategy ETF (NYSE: KRBN) now includes United Kingdom carbon allowance futures.
KRBN's new base weightings are as follows:
European Union Allowances (EUA) – 60%
California Carbon Allowances (CCA) – 25%
Regional Greenhouse Gas Initiative Allowances (RGA) – 5%
United Kingdom Allowances (UKA) – 5%
KRBN is benchmarked to IHS Markit's Global Carbon Index, which offers broad coverage of cap-and-trade carbon allowances by tracking the most traded carbon credit futures contracts. The index introduces a new measure for hedging risk and going long the price of carbon while supporting responsible investing. UKAs were added to the IHS Markit Global Carbon Index, and subsequently KRBN, following its 2021 rebalance on November 30. New carbon futures markets are eligible for inclusion after they meet accessibility, liquidity, maturity criteria.
"KRBN has been one of the top ten ETF launches in the United States in terms of inflows since inception, as reported by Bloomberg,1" said Luke Oliver, KraneShares Managing Director and Head of Strategy. "Additionally, the fund has seen strong performance, returning 100.12% year-to-date. We believe the inflows and performance are driven by a collective global realization that the price of carbon emissions needs to be higher in order to realize the goals of the Paris Climate Agreement and stave off the detrimental effects of climate change."
KRBN Performance History as of 12/8/21
Avg Annualized %
Total annual fund operating expense: 0.79%. Fund inception 7/30/2020
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please visit our website at www.kraneshares.com/krbn.
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 deliver innovative, first-to-market strategies developed based on our strong partnerships and 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 a signatory of the United Nations-supported Principles for Responsible Investing (UN PRI). The firm is majority owned by China International Capital Corporation (CICC).
About Climate Finance Partners
Climate Finance Partners (CLIFI) serves as the non-discretionary subadvisor to KRBN. CLIFI delivers innovative climate finance solutions and investment products to address capital needs for emerging environmental challenges. CLIFI is led by a team of investment professionals with deep experience in the fields of traditional investment and environmental finance. The Advisory Board is Chaired by Nobel Laureate, Robert Engle.
1. As of 12/2/2021, KRBN is a top 10 ETF launch based on year-to-date AUM inflow data from Bloomberg for all US ETF launches since 1/1/2020.
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/krbn. 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.
KRBN is subject to liquidity risk, meaning that certain investments may become difficult to purchase or sell at a reasonable time and price. If a transaction for these securities is large, it may not be possible to initiate which may cause the Fund to suffer losses.
KRBN relies on the existence of cap and trade regimes. There is no assurance that cap and trade regimes will continue to exist, or that they will prove to be an effective method of reduction in GHG emissions. Changes in U.S. law and related regulations may impact how the Fund operates, increase Fund costs and/or change the competitive landscape. Funds may underperform other similar funds that do not consider conscious company/ESG guidelines when making investment decisions.
KRBN invests through a subsidiary and is indirectly exposed to the risks associated with the respective Subsidiary's investments. Since the Subsidiary is organized under the law of the Cayman Islands and is not registered with the SEC under the Investment Company Act of 1940, as such the Fund will not receive all of the protections offered to shareholders of registered investment companies.
KRBN and its subsidiary will be considered commodity pools upon commencement of operations, and will be subject to regulation under the Commodity Exchange Act and CFTC rules. Commodity pools are subject to additional laws, regulations and enforcement policies, which may increase compliance costs and may affect the operations and performance of the Fund and the Subsidiary. Futures and other contracts may have to be liquidated at disadvantageous times or prices to prevent the Fund from exceeding any applicable position limits established by the CFTC.
The value of a commodity-linked derivative investment typically is based upon the price movements of a physical commodity and may be affected by changes in overall market movements, volatility of the Index, changes in interest rates, or factors affecting a particular industry or commodity.
Investments in non-U.S. instruments may involve risk of loss due to foreign currency fluctuations and political or economic instability. The Fund's assets are expected to be concentrated in an industry or group of industries to the extent that the Index concentrates in a particular industry or group of industries. KRBN is non-diversified.
Fund shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the Fund. However, shares may be redeemed at NAV directly by certain authorized broker-dealers (Authorized Participants) in very large creation/redemption units. The returns shown do not represent the returns you would receive if you traded shares at other times. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Beginning 12/23/2020, market price returns are based on the official closing price of an ETF share or, if the official closing price isn't available, the midpoint between the national best bid and national best offer ("NBBO") as of the time the ETF calculates the current NAV per share. Prior to that date, market price returns were based on the midpoint between the Bid and Ask price. NAVs are calculated using prices as of 4:00 PM Eastern Time.
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, or CLIFI.
SOURCE Krane Funds Advisors, LLC