NEW YORK, Oct. 5, 2021 /PRNewswire/ -- Krane Funds
Advisors, LLC, ("KraneShares"), an asset management firm known for
its global exchange-traded funds (ETFs) and innovative investment
strategies, is pleased to announce the expansion of its carbon
market offering with the launch of the KraneShares European
Carbon Allowance ETF (KEUA) and the KraneShares
California Carbon Allowance ETF (KCCA).
Under the cap-and-trade programs, carbon allowances put a price
on carbon emissions, engaging market forces to tackle climate
change. Each emissions trading program covered in the KraneShares
suite is a powerful policy tool for achieving the ambitious climate
targets set in the Paris Agreement.
The two new funds join KraneShares growing carbon market suite
alongside the KraneShares Global Carbon ETF (NYSE: KRBN), which was
listed in July 2020 on the New York
Stock Exchange. Since its inception, the fund has accumulated over
$900 million in assets under
management (AUM) and returned 105.45%.1 KRBN is the
first, largest, and most liquid publicly-listed carbon allowance
ETF in the world.2 KRBN currently offers exposure to
three major cap-and-trade programs: European Union Allowances
(EUA), California Carbon Allowances (CCA), and the Regional
Greenhouse Gas Initiative (RGGI).
"Through the phenomenal success of KRBN, we learned that many of
our clients also want targeted exposure to the underlying markets,"
said Luke Oliver, Managing Director
and Head of Strategy at KraneShares. "KEUA and KCCA provide access
to the component carbon allowance markets at various stages of
their growth cycle. With these new ETFs, investors can take a
customizable precision-approach to invest in carbon markets."
- The KraneShares European Carbon Allowance ETF (KEUA) provides
exposure to the European Union Allowances (EUA) cap-and-trade
program, the world's oldest and most liquid carbon allowance
market. The program aims to reduce emissions by at least 55% of
1990 levels by 2030 and climate neutrality by 2050. It covers
approximately 40% of the EU's total emissions.3
- The KraneShares California Carbon Allowance ETF (KCCA) provides
exposure to the California Carbon Allowances (CCA) cap-and-trade
program and covers approximately 80% of the state's emissions. In
2014, the program expanded to cover Quebec. The program plans to achieve a 40%
reduction from 1990 greenhouse gas levels and carbon neutrality by
2045.4
"We believe investors are attracted to the carbon allowance
investment opportunity because they see its low-correlated growth
potential, which can also have a positive impact on the planet,"
said Jonathan Krane, CEO of
KraneShares. "Our Europe and California carbon ETFs join KRBN in
expanding KraneShares' position as a leader in carbon market
investment solutions."
"Economists agree that one of the best policy tools we have to
confront the enormous challenge of climate change are emissions
trading programs," said Eron
Bloomgarden, Co-Founder of Climate Finance Partners, the
non-discretionary subadvisor to KRBN, KEUA, and KCCA. "Our suite of
carbon market ETFs helps to catalyze climate-action and compliment
the progress of cap-and-trade programs. We believe there may also
be significant upside potential in the market as the world
addresses the climate crisis."
For more information about KRBN, KEUA, or KCCA, email
info@kraneshares.com.
About KraneShares
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 a signatory of
the United Nations-supported Principles for Responsible Investing
(UN PRI). The firm is majority-owned
by China International Capital Corporation (CICC).
About Climate Finance Partners
Climate Finance
Partners (CLIFI) serves as the non-discretionary subadvisor to
KRBN, KEUA and KCCA. CLIFI delivers innovative climate finance
solutions and investment products to address capital needs for
emerging environmental challenges. CLIFI is led by a team of
investment professionals with deep experience in the fields of
traditional investment and environmental finance. The Advisory
Board is Chaired by Nobel Laureate, Robert
Engle.
Diversification does not ensure a profit or guarantee against a
loss.
KRBN Performance as of 9/30/21
Average Annualized
%
|
|
1
Yr
|
Since
Inception
|
Fund
NAV
|
101.48%
|
84.04%
|
Closing
Price
|
97.07%
|
84.84%
|
Index
|
99.69%
|
82.88%
|
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 investors 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. For performance data current
to the most recent month end, please
visit www.kraneshares.com.
Citations
1. Data as of 9/30/21
2. Data from Bloomberg as of 10/1/21
3. IHS Markit, 12/31/2020
4. California Air Resources Board, 2017
Important Notes
Carefully consider the Funds' investment objectives, risk
factors, charges, and expenses before investing. This and
additional information can be found in the Funds' full and summary
prospectus, which may be obtained by
visiting KRBN, KEUA,
KCCA. Read the prospectus carefully before
investing.
Risk Disclosures
Investing involves risk,
including possible loss of principal. There can be no assurance
that a Fund will achieve its stated objectives.
The Funds are subject to liquidity risk, meaning that certain
investments may become difficult to purchase or sell at a
reasonable time and price. If a transaction for these securities is
large, it may not be possible to initiate which may cause the Fund
to suffer losses.
The Funds rely on the existence of cap-and-trade regimes. There
is no assurance that cap and trade regimes will continue to exist,
or that they will prove to be an effective method of reduction in
GHG emissions. Changes in U.S. law and related regulations may
impact how the Fund operates, increase Fund costs and/or change the
competitive landscape. Funds may underperform other similar funds
that do not consider conscious company/ESG guidelines when making
investment decisions.
The Funds invest through a subsidiary and are indirectly exposed
to the risks associated with the respective Subsidiary's
investments. Since the Subsidiary is organized under the law of the
Cayman Islands and is not
registered with the SEC under the Investment Company Act of 1940,
as such the Fund will not receive all of the protections offered to
shareholders of registered investment companies.
The Funds and their subsidiaries will be considered commodity
pools upon commencement of operations, and will be subject to
regulation under the Commodity Exchange Act and CFTC rules.
Commodity pools are subject to additional laws, regulations and
enforcement policies, which may increase compliance costs and may
affect the operations and performance of the Fund and the
Subsidiary. Futures and other contracts may have to be liquidated
at disadvantageous times or prices to prevent the Fund from
exceeding any applicable position limits established by the
CFTC.
The value of a commodity-linked derivative investment typically
is based upon the price movements of a physical commodity and may
be affected by changes in overall market movements, volatility of
the Index, changes in interest rates, or factors affecting a
particular industry or commodity.
Investments in non-U.S. instruments may involve risk of loss due
to foreign currency fluctuations and political or economic
instability. The Fund's assets are expected to be concentrated in
an industry or group of industries to the extent that the Index
concentrates in a particular industry or group of industries. The
Funds are non-diversified.
Fund shares are bought and sold on an exchange at market price
(not NAV) and are not individually redeemed from the Fund. However,
shares may be redeemed at NAV directly by certain authorized
broker-dealers (Authorized Participants) in very large
creation/redemption units. The returns shown do not represent the
returns you would receive if you traded shares at other times.
Shares may trade at a premium or discount to their NAV in the
secondary market. Brokerage commissions will reduce returns.
Beginning 12/23/2020, market price returns are based on the
official closing price of an ETF share or, if the official closing
price isn't available, the midpoint between the national best bid
and national best offer ("NBBO") as of the time the ETF calculates
the current NAV per share. Prior to that date, market price returns
were based on the midpoint between the Bid and Ask price. NAVs are
calculated using prices as of 4:00 PM
Eastern Time.
The KraneShares ETFs are distributed by SEI Investments
Distribution Company (SIDCO), which is not affiliated with Krane
Funds Advisors, LLC, the Investment Adviser for the Fund, or
any sub-advisers for the Funds.
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SOURCE Krane Funds Advisors, LLC