The KBND issuer, managed by Krane Funds Advisors, LLC, primarily focuses on investing in Chinese onshore renminbi (RMB)-denominated fixed income securities issued into the China Interbank Bond Market (CIBM). With a commitment to mirroring the performance of its Underlying Index, the fund ensures at least 80% of its net assets are allocated to instruments within this index or those with similar economic characteristics. The Underlying Index comprises debt from the Chinese government, government-related entities, policy banks, and corporations, with specified minimum par values. Notably, the weightings within the index are carefully structured to maintain diversification, with approximately 25% allocated to various categories such as PRC-issued bonds and policy bank bonds, and 50% to corporate RMB bonds. To qualify for inclusion, corporate RMB bonds must meet specific credit rating criteria set by recognized agencies. While the fund primarily invests in CIBM-traded RMB bonds, it may also consider other instruments and investment avenues, such as off-shore RMB markets and derivatives, to enhance tracking performance. Despite the option to replicate the Underlying Index, the fund typically employs representative sampling. Furthermore, the fund's non-diversified nature means it may reflect the concentration of its index, with rebalancing occurring monthly.
The KBND Dividend, managed by Krane Funds Advisors, LLC, is structured to provide investors with income through dividend distributions. This fund aims to generate returns by investing in Chinese onshore renminbi (RMB)-denominated fixed income securities issued into the China Interbank Bond Market (CIBM). With a focus on instruments within its Underlying Index or those with similar economic characteristics, the KBND Dividend allocates at least 80% of its net assets to such securities. The Underlying Index encompasses various debt instruments, including those issued by the Chinese government, government-related entities, policy banks, and corporations, ensuring a diversified portfolio. Furthermore, the fund may engage in securities lending to optimize returns for investors. By emphasizing dividend generation within the fixed income space, KBND Dividend provides an avenue for investors seeking regular income from Chinese RMB-denominated bonds traded in the CIBM.
The KBND Tracking fund, overseen by Krane Funds Advisors, LLC, is designed to closely track the performance of its Underlying Index, which comprises Chinese onshore renminbi (RMB)-denominated fixed income securities traded in the China Interbank Bond Market (CIBM). With a strategic allocation strategy, the fund invests a minimum of 80% of its net assets in instruments within the index or those with similar economic characteristics. This approach ensures that investors gain exposure to the Chinese fixed income market while minimizing tracking error. The Underlying Index includes a diverse range of debt instruments issued by the Chinese government, government-related entities, policy banks, and corporations, providing broad market coverage. KBND Tracking may utilize various investment avenues, including the CIBM Program, Bond Connect, or a Qualified Foreign Investor (QFI) license, to gain exposure to the CIBM. By employing representative sampling rather than full replication, the fund maintains efficiency and flexibility in its tracking strategy, striving to deliver performance closely aligned with its benchmark index.
The KBND Correlation fund, managed by Krane Funds Advisors, LLC, aims to maintain a strong correlation with its designated benchmark index, which consists of Chinese onshore renminbi (RMB)-denominated fixed income securities traded in the China Interbank Bond Market (CIBM). By investing at least 80% of its net assets in instruments within the index or those with similar economic characteristics, the fund seeks to replicate the performance of the underlying market. This strategy ensures that investors can benefit from movements in the Chinese fixed income market while minimizing deviation from the benchmark. The Underlying Index encompasses a wide array of debt instruments issued by the Chinese government, government-related entities, policy banks, and corporations, ensuring comprehensive market coverage. KBND Correlation may utilize various investment channels, such as the CIBM Program, Bond Connect, or a Qualified Foreign Investor (QFI) license, to access the CIBM. Employing strategies to closely align with the benchmark index, the fund aims to deliver consistent returns that mirror the performance of the Chinese RMB-denominated fixed income market.
The KBND Sector fund, managed by Krane Funds Advisors, LLC, strategically focuses on specific sectors within the Chinese onshore renminbi (RMB)-denominated fixed income market traded in the China Interbank Bond Market (CIBM). With a targeted approach, the fund allocates its investments to sectors within its designated benchmark index, which encompasses a diverse range of debt instruments issued by the Chinese government, government-related entities, policy banks, and corporations. By investing at least 80% of its net assets in securities within the index or those exhibiting similar economic characteristics, the KBND Sector fund provides investors with exposure to selected sectors within the Chinese fixed income market. This specialized strategy allows investors to capitalize on opportunities and potential growth within specific segments of the market, while maintaining diversification and mitigating risk. Leveraging various investment channels such as the CIBM Program, Bond Connect, or a Qualified Foreign Investor (QFI) license, the fund endeavors to capture the potential for sector-specific outperformance while closely aligning with its benchmark index.
The KBND Exposure fund, managed by Krane Funds Advisors, LLC, offers investors broad exposure to the Chinese onshore renminbi (RMB)-denominated fixed income market traded in the China Interbank Bond Market (CIBM). With a primary objective of providing comprehensive coverage of this market segment, the fund invests at least 80% of its net assets in instruments within its designated benchmark index or those with similar economic characteristics. This approach ensures that investors gain exposure to a diverse array of debt instruments issued by the Chinese government, government-related entities, policy banks, and corporations. KBND Exposure leverages various investment channels such as the CIBM Program, Bond Connect, or a Qualified Foreign Investor (QFI) license to access the CIBM and capitalize on opportunities within the Chinese fixed income market. By maintaining a broad exposure to this market segment, the fund aims to capture potential returns while diversifying risk for investors seeking exposure to Chinese RMB-denominated fixed income securities.
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