KURE KraneShares MSCI All China Health Care Index ETF

NEW YORK, Feb. 2, 2018 /PRNewswire/ -- Krane Funds Advisors, LLC, ("KraneShares") a U.S. asset management firm known for its China focused KraneShares exchange traded funds (ETFs) and innovative China investment strategies, announced the launch of the KraneShares MSCI All China Health Care Index ETF (NYSE: KURE) listed on the NYSE. KURE tracks the performance of MSCI China All Shares Health Care 10/40 Index which includes publicly listed companies in Mainland China, 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.

China currently has the fastest growing major healthcare market in the world with a five-year compound annual growth rate of 17%, compared to just 4% in the United States, and -2% in Japan¹. In 2015 China surpassed Japan to become the second largest healthcare market globally, in terms of total healthcare expenditure, at $594 billion¹. This number is projected to nearly double to $1.1 trillion by 2020². There is still opportunity for considerable growth in China's healthcare sector with per capita healthcare spending at just $420, compared to an average of over $5,800 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," said Jonathan Krane, CEO of KraneShares. "We believe China's competitive research and development environment and favorable government policies also make China's healthcare sector particularly attractive."

KURE measures 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 healthcare 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 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.

About Krane Funds Advisors, LLC:

Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. Our suite of China focused ETFs provides investors with solutions to capture China's importance as an essential element of a well-designed investment portfolio. We strive to provide innovative, first to market strategies that have been developed based on our strong partnerships and our deep knowledge of investing. We help investors stay up to date on global market trends and aim to provide meaningful diversification. Krane Funds Advisors, LLC is majority owned by China International Capital Corporation (CICC).

1. Major healthcare markets defined as top five global markets by the World Health Organization. Data from the World Health Organization as of 12/31/2015 retrieved 01/29/2018
2. International Trade Association, "2016 Top Markets Report Pharmaceuticals, 2016". Retrieved 1/26/2018.
3. Data from IMS Market Prognosis, 10/2016

Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' full & summary prospectus, which may be obtained here:  KURE. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. ETF shares are not redeemable with the issuing fund other than in large Creation Unit aggregations. Instead, investors must buy or sell ETF Shares in the secondary market with the assistance of a stockbroker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling. The NAV of the Fund's shares is calculated each day the national securities exchanges are open for trading as of the close of regular trading on the New York Stock Exchange ("NYSE"), normally 4:00 p.m. Eastern time (the "NAV Calculation Time"). Shares are bought and sold at market price (closing price), not NAV. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined).

The Fund is 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. Narrowly focused investments typically exhibit higher volatility.

The ability of the fund to achieve its objective is dependent, in part, on the continuous availability of A Shares and the ability to obtain, if necessary, additional A Shares quota. If a Fund is unable to obtain sufficient exposure to limited availability of A Share quota, the Fund could seek exposure to the component securities of the Underlying Index by investment in other types of securities. The fund may in invest in derivatives, which are often more volatile than other investments and may magnify the Funds' gains or losses. The fund is non-diversified.

The fund invests primarily in the health care industry. The profitability of companies in the healthcare sector may be affected by government regulations, healthcare programs, or reimbursement for medical expenses; increases/decreases in the costs; limited product lines and others. Many companies are heavily dependent on patent protection. New products in the healthcare sector require significant research and development and may be subject to regulatory approvals, which may be time consuming and costly and with no guarantee that the product will come to market. Healthcare companies are subject to competitive forces that may result in pricing pressure, including price discounting, and may be thinly capitalized and susceptible to product obsolescence.

Indices are unmanaged and do not include the effect of fees. One cannot invest directly in an index.

The KraneShares ETFs are distributed by SEI Investments Distribution Company (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456, which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Fund.

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SOURCE Krane Funds Advisors, LLC