Investment Strategy:

KURE seeks to measure 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 health care 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 the 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.

China Health Care Sector Highlights:

• China is one of the fastest growing major healthcare markets in the world with a ten-year compound annual growth rate of 13%, compared to just 3% in the United States and 2% in Japan¹.
• China is the second largest healthcare market globally with total healthcare expenditures reaching $1.02 trillion in 2019, an increase of roughly 87% over the last 5 years².
• There is still opportunity for considerable growth in China’s healthcare market with per capita health spending at just $441, compared to an average of over $5,400 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.

KURE features:

• Exposure to Chinese companies listed in the Mainland, 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.
• Exposure to companies that benefit from China’s growing middle class and aging population.
• Access to leading Chinese pharmaceutical companies which have been recipients of favorable policy and market conditions for research and development and the invention of new medicines and devices.

1.) Major healthcare markets defined as top five global markets by the World Health Organization. Data from the World Health Organization as of 31/Dec/2017, last updated on 7/Apr/2020. Retrieved 31/Dec/2020.

2.) Statista, Health expenditure in China 2000-2019”, Published by Lai Lin Thomala, Dec 17, 2020, Retrieved 31/Dec/2020.

3.) Data from the World Health Organization, last updated on 7/Apr/2020. Retrieved 31/Dec/2020.