KMLM | KFA Mount Lucas Index Strategy ETF

KMLM ISSUER

The KMLM issuer, managed by Krane Funds Advisors, LLC, seeks to achieve its investment objectives through a diversified portfolio of commodity, currency, and global fixed income futures contracts. This is in accordance with a modified version of the MLM Index, which evaluates market trends to determine weightings and constituents. The Index, provided by Fuzzy Logix, Inc., employs a trend-following methodology, rolling futures contracts on a market-by-market basis and rebalancing monthly to maintain exposure and manage risk. To optimize investment efficiency, the Fund utilizes a subsidiary, advised by Krane and sub-advised by Mount Lucas Index Advisers LLC, while complying with regulatory constraints. Additionally, the Fund may invest in debt instruments and ETFs to further diversify its holdings, while maintaining flexibility to invest in instruments outside the Index. However, due to its utilization of CFTC-regulated futures and swaps, the Fund is classified as a commodity pool, subject to specific regulatory requirements. As of the most recent report, the Index was primarily invested in futures contracts across a range of commodities, currencies, and global bond markets, reflecting the Fund's commitment to global diversification and risk management.

KMLM DIVIDEND

As a commodity pool seeking to optimize returns through a diversified portfolio of futures contracts, KMLM Dividend, managed by Krane Funds Advisors, LLC, focuses on generating income for its investors. By investing in a variety of commodity, currency, and global fixed income futures contracts, the fund aims to capture dividend-like returns from these assets. Leveraging the modified MLM Index methodology, which prioritizes trend following and risk management, KMLM Dividend strategically selects constituents and adjusts weightings based on market signals, aiming for consistent income generation. The fund may also invest in debt instruments and ETFs to complement its futures holdings, further enhancing potential dividend yields. Through adherence to regulatory standards and active management by its advisors, KMLM Dividend seeks to provide investors with a reliable income stream while navigating the complexities of global futures markets.

KMLM TRACKING

KMLM Tracking, under the guidance of Krane Funds Advisors, LLC, is designed to closely mirror the performance of the modified MLM Index. With a focus on tracking the movements of commodity, currency, and global fixed income futures contracts, the fund aims to provide investors with an investment vehicle that replicates the Index's returns. Utilizing a trend-following methodology and periodic rebalancing, KMLM Tracking ensures alignment with the Index's composition and weightings. Through diligent monitoring and adjustment of its holdings, the fund seeks to minimize tracking error and deliver results consistent with the underlying Index. Investors in KMLM Tracking can thus gain exposure to a diversified basket of futures contracts, offering potential for returns that reflect the broader movements of commodity, currency, and fixed income markets.

KMLM CORRELATION

KMLM Correlation, managed by Krane Funds Advisors, LLC, aims to provide investors with exposure to a diversified portfolio of commodity, currency, and global fixed income futures contracts while focusing on correlation strategies. By closely aligning with the modified MLM Index, the fund seeks to capitalize on correlations between different asset classes, aiming to mitigate risk and enhance returns. Through the Index's trend-following methodology and periodic rebalancing, KMLM Correlation strategically adjusts its holdings to maintain correlation with the underlying assets. This approach allows investors to potentially benefit from market movements while managing overall portfolio risk through diversification. With a focus on correlation strategies, the fund offers investors an opportunity to access a dynamic portfolio designed to navigate changing market conditions effectively.

KMLM SECTOR

KMLM Sector, managed by Krane Funds Advisors, LLC, is tailored to provide investors with exposure to specific sectors within commodity, currency, and global fixed income markets. Leveraging the modified MLM Index methodology, the fund focuses on identifying and capitalizing on opportunities within targeted sectors, allowing investors to allocate their capital strategically. By aligning with sector-specific trends and rebalancing accordingly, KMLM Sector aims to optimize returns while managing sector-specific risks. This approach enables investors to gain targeted exposure to sectors such as commodities, currencies, and global bond markets, offering the potential for enhanced returns within chosen segments of the market. With active management and adherence to the Index's sector allocations, KMLM Sector provides investors with a specialized investment vehicle designed to capture opportunities within specific sectors of the market.

KMLM EXPOSURE

KMLM Exposure, overseen by Krane Funds Advisors, LLC, is crafted to provide investors with broad exposure across commodity, currency, and global fixed income markets. By adhering closely to the modified MLM Index, the fund aims to capture the performance of these diverse asset classes. Through a combination of trend-following methodologies and regular rebalancing, KMLM Exposure seeks to maintain a balanced and diversified portfolio, reflecting the composition of the underlying Index. Investors can benefit from exposure to a wide range of commodities, currencies, and global bond markets, allowing for potential returns across various market conditions. With active management and a focus on maintaining exposure to the Index constituents, KMLM Exposure offers investors a comprehensive vehicle for participating in global financial markets.