London, U.K. 26 May 2020 – Krane Funds Advisors, LLC, (“KraneShares”), a global asset management firm known for its China-focused exchange-traded funds and innovative China investment strategies, today announced the launch of the KraneShares Bloomberg Barclays China Bond Inclusion UCITS ETF (ticker: KBND) on the London Stock Exchange.

KBND is benchmarked against the Bloomberg Barclays China Treasury and Policy Bank Capped Index, which is designed to track the performance of China’s onshore renminbi (RMB)-denominated government and policy bank bond market. KBND will hold bonds issued by either China’s Ministry of Finance or government-owned banks within China.

KBND offers investors access to the RMB-denominated securities being included in the Bloomberg Barclays Global Aggregate Index, an index with an estimated $2.5 trillion in assets passively tracking or actively managed against it.¹ In April 2019, Bloomberg began including Chinese RMB-denominated government and policy bank securities to the Bloomberg Barclays Global Aggregate Index, phased in over a 20 month period. The full inclusion is expected to attract around $150 billion of fund inflows into China’s $13 trillion bond market.²

“With attractive yields and low correlations relative to other government bond markets, China fixed income presents a compelling opportunity,” said Jonathan Krane, CEO of KraneShares.“We’re proud to partner with Bloomberg Barclays and Citigroup on KBND, which is an important fund marking a key milestone of the evolution of China’s Fixed Income market for the asset management industry.”

"Our goal at Bloomberg is to provide innovative solutions in indexing,” Steve Berkley, CEO of Bloomberg Index Services Limited (BISL), explained. “The inclusion of RMB-denominated bonds in Bloomberg's fixed income indexes is a significant development for China's integration with global financial markets. We are excited to partner with KraneShares to make the Bloomberg Barclays China Treasury and Policy Bank Index investable through KBND.”

Additionally, KraneShares has partnered with Citigroup to be the distributor for KBND. KraneShares’ Capital Markets team will leverage Citi’s bond connect capabilities to trade and source the underlying bonds for KBND.

For more information about KBND visit kraneshares.eu/kbndln or email [email protected].

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1. IMF Blog, “China Deepens Global Finance Links as It Joins Benchmark Indexes”, 6/19/2019
2. Financial Times, “Bloomberg adds Chinese government bonds to flagship index”, 3/31/2019

About KraneShares
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.

In 2019, KraneShares established a London headquarters to better deliver its renowned China-focused ETFs to European investors. In addition to launching Europe-specific versions of its most popular US-listed funds, KraneShares also develops strategies tailored to meet the specific needs of its European clients. 

This information is being communicated by KraneShares, which is an appointed representative of DMS Capital Solutions U.K. 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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Any investment, and investment activity or controlled activity, to which this information relates is available only to such persons and will be engaged in only with such persons. Persons that do not have professional experience should not rely or act upon this information unless they are persons to whom any of paragraphs (2)(a) to (d) of article 49 apply to whom distribution of this information may otherwise lawfully be made.

For additional fund documentation, please visit www.DMSGovernance.com.

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