Krane Funds Advisors and Mount Lucas Staff As much as Present a Value-based Managed Futures Index for ETF Buyers

NEW YORK, Dec. 8, 2020 /PRNewswire/ — Krane Funds Advisors, in partnership with Mount Lucas, not too long ago launched the KFA Mount Lucas Index Technique ETF (KMLM), a fund that tracks the KFA MLM Index —a modified model of the MLM Index, a extensively regarded benchmark for managed futures investing created by Mount Lucas in 1988.

This new partnership will search to capitalize on the funding experience of each corporations. Mount Lucas is a pioneer in managed futures investing and would be the fund’s sub-advisor. Krane Funds, a frontrunner in ETF investing and in offering traders with asset courses and market exposures that had been beforehand solely obtainable to institutional traders would be the fund’s advisor.

The KFA Mount Lucas Index Technique ETF will spend money on 22 futures contracts—11 commodity markets, six currencies and 5 international bond markets—by monitoring the KFA MLM Index, which evaluates market buying and selling alerts each day.

“We routinely see that institutional portfolios are underexposed to managed futures and over-exposed to fairness danger,” mentioned Timothy Rudderow, CEO & CIO of Mount Lucas. “This state of affairs is okay when volatility is low, however the funding world was reminded in 2020 why extremely liquid and uncorrelated investments are necessary. There could also be important beta in managed futures, and we imagine our Index is the easiest way to passively entry that beta.”

“We’re happy to launch the KMLM ETF in partnership with Mount Lucas, leveraging their 30-year historical past and powerful observe file within the managed futures house,” mentioned Jonathan Shelon, COO of Krane Funds Advisors. “The ETF seeks to ship the Mount Lucas staff’s experience and the potential advantages of managed futures to all traders via a cheap1 and extremely liquid ETF construction. Launching KMLM continues our mission in offering differentiated, high-conviction funding methods to international traders.”

For extra details about KMLM, go to kfafunds.com/kmlm, or discuss to your monetary advisor.

About Krane Funds Advisors

Based in 2012, Krane Funds Advisors, LLC, is the funding supervisor for KFA Funds and KraneShares ETFs. We imagine that traders ought to have cost-effective and clear instruments for attaining publicity to all kinds of asset courses.

The KFA Funds product suite delivers differentiated, high-conviction funding methods to international traders. We’re captivated with figuring out groundbreaking capital market alternatives and creating them into funding automobiles that supply a supply of non-traditional diversification to our purchasers.

Krane Funds Advisors, LLC is majority-owned by China Worldwide Capital Company (CICC).

About Mount Lucas

Since 1986, Mount Lucas, based mostly in Newtown, Pennsylvania, has offered progressive and various funding methods to institutional and high-net-worth traders that improve and diversify conventional investments. Mount Lucas’ funding professionals have intensive expertise within the improvement and use of systematic funding methods and has been a pioneer in providing traders distinctive options to advanced issues throughout fairness, fastened earnings, foreign money and commodity markets. The agency has roughly $1.three billion in property underneath administration as of September 30, 2020.

1. Shopping for and promoting shares of the KFA Funds might lead to brokerage commissions.

Fastidiously contemplate the Fund’s funding goals, danger components, prices and bills earlier than investing. This and extra info might be discovered within the Funds’ full &abstract prospectus, which can be obtained right here: KMLM. Learn the prospectus fastidiously earlier than investing. Please word this hyperlink additionally accommodates the fund’s high ten holdings, efficiency, and different necessary info.

Danger Disclosures

Investing entails danger, together with doable lack of principal. There might be no assurance {that a} Fund will obtain its acknowledged goals..

The Fund might spend money on derivatives, which are sometimes extra risky than different investments and will enlarge the Fund’s positive factors or losses. A by-product (i.e., futures/ahead contracts, swaps, and choices) is a contract that derives its worth from the efficiency of an underlying asset. The first danger of derivatives is that adjustments within the asset’s market worth and the by-product is probably not proportionate, and a few derivatives can have the potential for limitless losses. Derivatives are additionally topic to liquidity and counterparty danger. The Fund is non-diversified.

KMLM is topic to liquidity danger, which means that sure investments might turn out to be tough to buy or promote at an inexpensive time and value. If a transaction for these securities is massive, it is probably not doable to provoke which can trigger the Fund to endure losses.

KMLM make investments via a subsidiary and is not directly uncovered to the dangers related to the Subsidiary’s investments. Because the Subsidiary is organized underneath the legislation of the Cayman Islands and isn’t registered with the SEC underneath the Funding Firm Act of 1940, as such the Fund won’t obtain all the protections provided to shareholders of registered funding corporations.

The worth of a commodity-linked by-product funding usually relies upon the value actions of a bodily commodity and could also be affected by adjustments in general market actions, volatility of the Index, adjustments in rates of interest, or components affecting a specific business or commodity.

KMLM, and the Fund’s Subsidiary can be thought-about commodity swimming pools upon graduation of operations, and every can be topic to regulation underneath the Commodity Change Act and CFTC guidelines. Commodity swimming pools are topic to further legal guidelines, laws and enforcement insurance policies, which can improve compliance prices and will have an effect on the operations and efficiency of the Fund and the Subsidiary. Futures and different contracts might need to be liquidated at disadvantageous occasions or costs to stop the Fund from exceeding any relevant place limits established by the CFTC. Moreover, the fund’s investments are topic to liquidity danger, which exists when an funding is or turns into tough to buy or promote at an inexpensive time and value.

Diversification doesn’t get rid of the chance of experiencing funding loss.

ETF shares will not be redeemable with the issuing fund aside from in massive Creation Unit aggregations. As a substitute, traders should purchase or promote ETF Shares within the secondary market with the help of a stockbroker. In doing so, the investor might incur brokerage commissions and will pay greater than web asset worth when shopping for and obtain lower than web asset worth when promoting. The NAV of the Fund’s shares is calculated every day the nationwide securities exchanges are open for buying and selling as of the shut of standard buying and selling on the New York Inventory Change (“NYSE”), usually 4:00 p.m. Japanese time (the “NAV Calculation Time”). Shares are purchased and bought at market value (closing value) not NAV. Market value returns are based mostly on the midpoint of the bid/ask unfold at 4:00 pm Japanese Time (when NAV is generally decided)

The KMLM ETF is distributed by SEI Investments Distribution Firm (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456, which isn’t affiliated with Krane Funds Advisors, LLC, the Funding Adviser for the Fund, or Mount Lucas Administration, the sub-adviser for the Fund.

SOURCE Krane Funds Advisors, LLC

Associated Hyperlinks

http://kraneshares.com

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