LONDON, Feb. 4, 2020 /PRNewswire/ -- Krane Funds Advisors, LLC, ("KraneShares"), a global asset management firm known for its China-focused exchange-traded funds (ETFs) and innovative China investment strategies, today announced the launch of the KraneShares MSCI China ESG Leaders UCITS ETF (Ticker: KESG) on the London Stock Exchange.
KESG tracks the MSCI China ESG Leaders 10/40 Index, a capitalization weighted index that provides exposure to companies with high Environmental, Social and Governance ratings relative to their sector peers. The Index consists of large and mid-cap companies domiciled in China. KESG's index provider, MSCI, is the number one provider of ESG, Socially Responsible Investment (SRI) and corporate governance indexes based on a survey of global institutions.1
China's economy is moving from manufacturing to services. Typically, companies aligned with the "New China" economy experience greater growth than companies from China's legacy sectors. MSCI's ESG methodology not only identifies more socially responsible investment opportunities, it can also be an effective filter for capturing companies that are aligned with China's future growth trajectory.
Since its inception in 2013, the MSCI China ESG Leaders Index has outperformed the standard MSCI China Index by 58%. The 5-year annualized return of the MSCI China ESG Leaders Index was 12.34% as compared to just 7.49% from the MSCI China Index.2
"We have seen a lot of investor demand for a China-focused ESG UCITS ETF," said Jonathan Krane, CEO of KraneShares. "We are proud to partner with MSCI, a global leader in ESG indexing, to deliver the KraneShares MSCI China ESG Leaders UCITS ETF (Ticker: KESG) to our clients."
Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. The firm is focused on providing investors with strategies to capture China's importance as an essential element of a well-designed investment portfolio. KraneShares ETFs represent innovative, first to market strategies that have been developed based on the firm and its partners' deep knowledge of investing. These strategies allow investors to stay current on global market trends and provide meaningful diversification. Krane Funds Advisors, LLC is majority owned by China International Capital Corporation (CICC).
This information is being communicated by KraneShares, which is an appointed representative of DMS Capital Solutions UK Limited, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom under the reference number 503325.
Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. The Funds are 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. Emerging markets involve heightened risk related to the same factors as well as increase volatility and lower trading volume.
Narrowly focused investments typically exhibit higher volatility. Internet companies are subject to rapid changes in technology, worldwide competition, rapid obsolescence of products and services, loss of patent protections, evolving industry standards and frequent new product productions. Such changes may have an adverse impact on performance.
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For additional fund documentation, please visit www.DMSGovernance.com.
1 As voted by 1,300 participants of the SRI Connect and Extel Survey in 2018
2 Data from Bloomberg as of 31 December 2019
SOURCE Krane Funds Advisors, LLC