Overview

Performance

Holdings

Listings

Security Documents

Overview

Investment Strategy:

The KraneShares Global Carbon Strategy ETC (KRBN) is intended to track the level of its reference index, the S&P Global Carbon Credit 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. The index covers the major European and North American cap-and-trade programs: European Union Allowances (EUA), California Carbon Allowances (CCA), United Kingdom Allowances (UKA), and the Regional Greenhouse Gas Initiative (RGGI), which covers the Northeast US Power Market.

Performance

  • Carbon portfolio historically provides annualized returns nearly 2x the S&P 500.1
  • Structurally designed for long-term price appreciation due to the markets’ increasing supply scarcity.2
  • Low correlations to major asset classes, including 0.3 to US large cap.1
  • Provides alternative return profile with potential inflation and climate risk hedging.

Impact

  • Provides potential impact by supporting price discovery and liquidity in carbon markets.3
  • Counterbalance portfolio’s emissions exposure and energy transition/climate risk.
  • Cap and trade supports fuel switching and capital directed toward innovation in renewable technology.3

1. Data from Bloomberg and S&P Dow Jones Indices as of 31/Jul/2024.
2. European Commission, “What is the EU ETS?” retrieved 25/Jun/2024.
3. International Swaps and Derivatives Association, “Role of Derivatives in Carbon Markets,” Sep 2021.

Security Details

Data as of 19/Dec/2024
Ticker KRBN
Primary SEDOL BSTJGN8
Primary ISIN XS2879867773
Net Assets $11,345,351
Total Expense Ratio 0.78%
Inception Date 03/Oct/2024
Distribution Frequency Accumulating

Daily Performance

Data as of 19/Dec/2024
Daily Net Asset Value (NAV)
NAV $24.40
NAV Daily Change 2.48%

Performance History

Cumulative %
Data as of: 30/Nov/2024
Security NAV Underlying Index
1 Month -1.08%
3 Month –
6 Month –
YTD –
Since Inception 2.80% –
Cumulative %
Data as of quarter end: 30/Sep/2024
Security NAV Underlying Index
Since Inception – –

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.

Topics:

Carbon Allowance Futures

Data as of 20/Dec/2024
Name Identifier Position Current Exposure ($) % NAV
European Union Allowance (EUA) 2025 Future MOZ25 Comdty 86 6,098,910 53.25%
California Carbon Allowance (CCA) Vintage 2025 Future BCYZ25 Comdty 63 2,268,630 19.81%
California Carbon Allowance (CCA) Vintage 2026 Future KBCZ26 Comdty 16 612,480 5.35%
Regional Greenhouse Gas Initiative (RGGI) Vintage 2025 Future JELZ25 Comdty 24 583,920 5.1%
European Union Allowance (EUA) 2026 Future MOZ26 Comdty 8 583,812 5.1%
Washington Carbon Allowance (WCA) Vintage 2025 Future WKCZ25 Comdty 10 538,000 4.7%
UK Allowance (UKA) 2025 Future UKEZ5 Comdty 12 513,305 4.48%
11,199,057 98%

Collateral and Currency Management

Data as of 20/Dec/2024
Name Identifier Position Current Exposure($) % NAV
Euro FX Futures ECH5 Curncy 52 6,814,925 59.5%
USD Cash & Equivalents** USD 4,028,699 4,028,699 35.18%
BRITISH STERLING POUND GBP 340,348 426,811 3.73%
EURO EUR 338,712 352,209 3.08%
11,622,645 101%

Holdings, carbon allowance futures, and collateral are subject to change.
**Includes USD cash deposits & cash in margin accounts ($10,843,624), and implied short USD exposure from Euro FX futures

Top 10 Holdings

Data as of 20/Dec/2024 Full Holdings .CSV
Rank Name % of Net Assets Ticker Identifier Type Shares Held Market Value($) Notional Value($)
1 Cash 93.20% – – Cash 10,673,764 10,673,764 0
2 BRITISH STERLING POUND 3.73% – – Currency 340,348 426,811 0
3 EURO 3.08% – – Currency 338,712 352,209 0
4 CA CARBON ALLOW 25DEC25 0.00% BCYZ25 – Future 63 0 2,268,630
5 CCA VINTAGE 2026 DEC26 0.00% KBCZ26 – Future 16 0 612,480
6 ECX EMISSION DEC25 0.00% MOZ25 – Future 86 0 6,098,910
7 ECX EMISSION DEC26 0.00% MOZ26 – Future 8 0 583,812
8 EURO FX CURR FUT MAR25 0.00% ECH5 – Future 52 0 6,814,925
9 REG GH GAS VNT 25 DEC25 0.00% JELZ25 – Future 24 0 583,920
10 UK EMISS ALLOW FU DEC25 0.00% UKEZ5 – Future 12 0 513,305

Holdings are subject to change.

Listings

Data as of 19/Dec/2024
Exchange Ticker Currency Listing Date SEDOL ISIN
Deutsche Börse Xetra KRBN GY EUR 03/Oct/2024 BSRH0H6 XS2879867773
Deutsche Börse Xfra KRBN GY EUR 03/Oct/2024 BSRH0H6 XS2879867773
Borsa Italiana KRBN IM EUR 03/Oct/2024 BSTJGN8 XS2879867773

Security Documents

©2024 Krane Funds Advisors, LLC
280 Park Avenue, 32nd Floor, New York, NY 10017

Investors will be advised that investing involves risk, including possible loss of principal. There can be no assurance that any series of ETCs will achieve its stated objectives. Under the ETC Programme, the Issuer may offer multiple different ETC Series. The performance of each ETC Series will be linked to specified reference indices comprised of futures contracts in the Global Carbon Credit Markets. The indices, and corresponding future contracts, are subject to political, social or economic changes which may cause decline in value. The Issuer may invest in derivatives, which are often more volatile than other investments and may magnify gains or losses for investors in the relevant ETC Series. Fluctuations in the currencies of foreign countries may have an adverse effect to domestic currency values. Narrowly focused investments typically exhibit higher volatility. Investors will be advised of these and other relevant risk factors before investing in any ETC Series.

The ETCs are not principal protected and are a high-risk investment. The ETCs are secured, limited recourse obligations of the Issuer. The ETCs issued under the Programme will not be guaranteed by any entity and no person other than the Issuer will be obliged to make payments on the ETCs.

For investors in the EU: The information provided is for information purposes only in order to outline the capabilities of the KraneShares ETC Securities Programme. The information contained herein is not provided for the purposes of marketing or selling the ETC or any security nor is it intended to be used for making investment decisions by either select intermediaries or their underlying clients.

For investors in the United Kingdom: Information and material provided is for information only and does not constitute an offer or recommendation to buy or sell any investment, or subscribe to any investment management or advisory service. It is not, under any circumstances, intended for distribution to the general public. You are accessing information which may constitute a financial promotion under section 21 of the Financial Services and Markets Act 2000 ("FSMA"). In relation to the United Kingdom, this information is only directed at, and may only be distributed to, persons who are “Investment Professionals” (being persons having professional experience in matters relating to investments) within the meaning of article 19(5) of the FSMA (Financial Promotion) Order 2005 (the “Financial Promotion Order”), persons to whom any of paragraphs (2)(a) to (d) of article 49 (high net worth companies, unincorporated associations etc.) of the financial promotion order apply, or persons to whom distribution may otherwise lawfully be made.

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.

Any performance quoted represents past performance and is no guarantee of future results. Past performance is not indicative or a guarantee of future performance. These materials do not take into account individual client circumstances, objectives, or needs, and are not intended as recommendations of particular securities, financial instruments, or strategies to particular clients or prospects.

Krane Funds Advisors, LLC acts as Arranger in relation to the Issuer’s ETC Programme as described in a Base Prospectus dated 13 September 2024 approved by the Central Bank of Ireland pursuant to the EU Prospectus Regulation (Regulation (EU) 2017/1129) and available on www.kraneshares.eu. In relation to each ETC Series, Waystone Management Company (IE) Limited acts as Trustee pursuant to a trust deed and as Security Trustee pursuant to an Irish law security trust deed.

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