March 15, 2021

KraneShares ICAV continues to closely monitor the impact of Executive Order 13959 (“Executive Order”). As of March 15, 2021, we can confirm that none of our Funds hold Subject Securities.

January 1, 2021

KraneShares ICAV offers four index-based UCITS ETFs that invest in the securities of issuers worldwide, including China. On 12 November 2020, Executive Order 13959 (“Executive Order”) was issued, prohibiting transactions by U.S. persons in certain Chinese issuers’ securities (“Subject Securities”), beginning on 11 January 2021. On 28 December 2020, the Office of Foreign Assets Control (“OFAC”) issued a list, specifying the Subject Securities.

• Three of the KraneShares UCITS ETFs are not affected by the Executive Order as they do not hold, or have any exposure to, Subject Securities. 
• The one KraneShares UCITS ETF that currently does hold, or has exposure to, Subject Securities will liquidate such positions no later than 5 January 2021.
• KraneShares UCITS ETFs have no exposure to the three U.S.-listed Chinese telecom stocks that will be suspended by the New York Stock Exchange (NYSE).

As index-based ETFs, the four KraneShares UCITS ETFs track underlying indexes. Three such underlying indexes do not include any Subject Securities.  While the KraneShares MSCI China A-Share UCITS ETF (ticker: KBA)’s underlying index does currently include Subject Securities, it will remove all Subject Securities in advance of 11 January the effective date of the Executive Order. KBA will subsequently rebalance its portfolio to the revised underlying index. 

Please see the table below for detailed information on the weight of Subject Securities in the KraneShares UCITS ETFs before and after the actions described above.

[R-KS-EU]