NEW YORK, Feb. 2, 2018 /PRNewswire/ -- Krane Funds
Advisors, LLC, ("KraneShares") a U.S. asset management firm known
for its China focused KraneShares
exchange traded funds (ETFs) and innovative China investment strategies, announced the
launch of the KraneShares MSCI All China Health Care Index ETF
(NYSE: KURE) listed on the NYSE. KURE tracks the performance of
MSCI China All Shares Health Care 10/40 Index which includes
publicly listed companies in Mainland China, Hong Kong and United
States that are involved in the healthcare industry,
specifically: patent and generic pharmaceuticals, hospital
administration, biotechnology, medical equipment production,
healthcare IT, and traditional Chinese medicine.
China currently has the fastest
growing major healthcare market in the world with a five-year
compound annual growth rate of 17%, compared to just 4% in
the United States, and -2% in
Japan1. In 2015 China
surpassed Japan to become the
second largest healthcare market globally, in terms of total
healthcare expenditure, at $594
billion1. This number is projected to nearly
double to $1.1 trillion by
20202. There is still opportunity for considerable
growth in China's healthcare
sector with per capita healthcare spending at just $420, compared to an average of over $5,800 for the world's top eight healthcare
markets3.
"China's aging population,
rising incomes and increasing urbanization may provide a sustained
catalyst for growth in China's
healthcare sector," said Jonathan
Krane, CEO of KraneShares. "We believe China's competitive research and development
environment and favorable government policies also make
China's healthcare sector
particularly attractive."
KURE measures the performance of MSCI China All Shares Health
Care 10/40 Index. The Index is a free float adjusted market
capitalization weighted index designed to track the equity market
performance of Chinese companies engaged in the healthcare sector.
The securities in the Index include all types of publicly issued
shares of Chinese issuers, which are listed in Mainland China,
Hong Kong and United States. Issuers eligible for inclusion
must be classified under the Global Industry Classification
Standard (GICS) as engaged in the healthcare sector. The issuers
included in the Underlying Index may include small-cap, mid-cap and
large-cap companies.
About Krane Funds Advisors, LLC:
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 provide innovative, first to market
strategies that have been developed based on our strong
partnerships and our 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 majority
owned by China International Capital Corporation (CICC).
- Major healthcare markets defined as top five global markets by
the World Health Organization. Data from the World Health
Organization as of 12/31/2015
retrieved 01/29/2018
- International Trade Association, "2016 Top Markets Report
Pharmaceuticals, 2016". Retrieved 1/26/2018.
- Data from IMS Market Prognosis, 10/2016
Carefully consider the Funds' investment objectives, risk
factors, charges and expenses before investing. This and additional
information can be found in the Funds' full & summary
prospectus, which may be obtained here:
KURE. 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. ETF shares are not redeemable with the issuing fund
other than in large Creation Unit aggregations. Instead, investors
must buy or sell ETF Shares in the secondary market with the
assistance of a stockbroker. In doing so, the investor may incur
brokerage commissions and may pay more than net asset value when
buying and receive less than net asset value when selling. The NAV
of the Fund's shares is calculated each day the national securities
exchanges are open for trading as of the close of regular trading
on the New York Stock Exchange ("NYSE"), normally 4:00 p.m. Eastern time (the "NAV Calculation
Time"). Shares are bought and sold at market price (closing price),
not NAV. Market price returns are based on the midpoint of the
bid/ask spread at 4:00 pm Eastern
Time (when NAV is normally determined).
The Fund is subject to political, social or economic instability
within China which may cause
decline in value. Fluctuations in currency of foreign countries may
have an adverse effect to domestic currency values. Narrowly
focused investments typically exhibit higher volatility.
The ability of the fund to achieve its objective is dependent,
in part, on the continuous availability of A Shares and the ability
to obtain, if necessary, additional A Shares quota. If a Fund is
unable to obtain sufficient exposure to limited availability of A
Share quota, the Fund could seek exposure to the component
securities of the Underlying Index by investment in other types of
securities. The fund may in invest in derivatives, which are often
more volatile than other investments and may magnify the Funds'
gains or losses. The fund is non-diversified.
The fund invests primarily in the health care industry. The
profitability of companies in the healthcare sector may be affected
by government regulations, healthcare programs, or reimbursement
for medical expenses; increases/decreases in the costs; limited
product lines and others. Many companies are heavily dependent on
patent protection. New products in the healthcare sector require
significant research and development and may be subject to
regulatory approvals, which may be time consuming and costly and
with no guarantee that the product will come to market. Healthcare
companies are subject to competitive forces that may result in
pricing pressure, including price discounting, and may be thinly
capitalized and susceptible to product obsolescence.
Indices are unmanaged and do not include the effect of fees. One
cannot invest directly in an index.
The KraneShares ETFs are distributed by SEI Investments
Distribution Company (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456, which is not affiliated with
Krane Funds Advisors, LLC, the Investment Adviser for the Fund.
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SOURCE Krane Funds Advisors, LLC