KHYB

KraneShares Asia Pacific High Income Bond ETF*

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Investment Strategy:

KHYB is an active ETF managed by sub-advisor Nikko Asset Management Americas, Inc. (“Nikko”). KHYB is benchmarked to the JP Morgan Asia Credit Index (JACI) Non-Investment Grade Corporate Index. The fund provides exposure to USD-denominated high yield debt securities issued by companies in Asia.

Asia Bond Market Features:

  • The Asia Bond Market has witnessed steady growth over the last decade. The JP Morgan Asia Credit Index grew from a market capitalization of $250 billion in 2010 to over $1.2 trillion in 2020, an increase of 368%1.
  • The Asia high yield bond market currently offers higher yields than other global high yield bond markets. As of September 2021, Asia high yield bonds had a yield of 11.0% compared to 4.7% for US high yield bonds.2
  • The default rate of Asia high-yield corporate bonds has been lower than that of high yield bonds in other emerging market regions in six of the past nine years, and was lower than the US high yield default rate in both 2019 and 2020.3

KHYB Features:

    • Sub-advised by Nikko. Nikko was established in 1959 and is one of Asia's largest asset managers with over $282 billion in assets under management. Nikko is a leader in Asia fixed income with 30+ years of experience in the market4.
    • KHYB portfolio manager Wai Hoong Leong is supported by one of the largest Asia fixed income teams. His team uses top-down macro research and bottom-up credit research to construct the Fund’s portfolio.
    • The portfolio management team uses a proprietary process that involves both quantitative and qualitative factors, the team assesses an issuer’s credit profile, security value, and relative value compared to other similar securities.

    *Formerly the KraneShares Asia Pacific High Yield Bond ETF, and prior to August 2, 2021, the KraneShares CCBS China Corporate High Yield Bond USD Index ETF (ticker: KCCB)

    1.) Data from JP Morgan as of 3/31/2021.
    2.) Data from Bloomberg as of 9/30/2021. Asia high yield bond market represented by the Bloomberg Barclays Asia USD High Yield Diversified Credit Index. US high yield bond market represented by the Bloomberg Barclays US Corporate High Yield Index.
    3.) Data from JP Morgan Asia Credit Outlook and Strategy, April 2021.
    4.) Data from Nikko Asset Management as of 3/31/2021.

Fund Details

Data as of 12/03/2021
TickerKHYB
Primary ExchangeNYSE
CUSIP500767843
ISINUS5007678437
Net Assets$29,194,811
Total Annual Fund Operating Expense 0.69%
Inception Date6/26/2018
Distribution FrequencyMonthly

Daily Performance

Data as of 12/03/2021
Premium Discount Chart
NAV
Net Asset Value$32.44 
Daily Change -0.14%
Price
Market Price $0.00 
Daily Change0.00%
30 Day Median Bid/Ask Spread
Value0%

The ETF’s 30 Day Median Bid-Ask Spread is calculated by identifying the ETF’s national best bid and national best offer ("NBBO") as of the end of each 10 second interval during each trading day of the last 30 calendar days and dividing the difference between each such bid and offer by the midpoint of the NBBO. The median of those values is identified and that value is expressed as a percentage rounded to the nearest hundredth.

Performance History

Distributions
Cumulative %
Data as of: 11/30/2021
Fund NAV Closing Price Index
1 Month-1.40% -0.88% -0.48%
3 Month-13.92% -13.19% -11.11%
6 Month-14.30% -13.93% -12.38%
Since Inception-1.29% -0.33% 5.19%
Avg Annualized %
Data as of month end: 11/30/2021
Fund NAV Closing PriceIndex
1 Year-12.40% -11.76% -10.44%
3 Year-0.19% -0.01% 1.99%
Since Inception-0.38% -0.10% 1.48%
Avg Annualized %
Data as of quarter end: 09/30/2021
Fund NAV Closing Price Index
1 Year-1.36% -0.86% -3.04%
3 Year3.00% 2.99% 3.78%
Since Inception2.96% 3.02% 3.74%
Growth of $10,000
Data as of 12/03/2021

The Hybrid KHYB Index (noted as “index” above in the chart) consists of the Solactive USD China Corporate High Yield Bond Index from the inception of the fund through August 2, 2021 and the JP Morgan Asia Credit Index (JACI) Non-Investment Grade Corporate Index going forward.

Performance shown for periods before August 2, 2021, reflects that of the prior Fund. Future performance may be different than past performance due to changes, including investment objectives and principal investment strategies. Additionally, before August 2, 2021, a co-manager assisted in the day-to-day portfolio management, and the Fund previously sought to track the performance of a different Index before fees and expenses.

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 investor's 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.

The Growth of $10,000 chart reflects an initial investment of $10,000 on the day prior to the selected time period and assumes reinvestment of dividends and capital gains. For the growth of $10,000 chart since inception, the initial investment of $10,000 is instead made on the inception date of the Fund. Fund expenses, including management fees and other expenses were deducted. The growth of a $10,000 investment in the fund is hypothetical and for illustration purposes only.

KHYB Key Metrics

Data as of 11/30/2021
Current Yield7.79%
30-day SEC Yield7.28%
Unsubsidized 30-day SEC Yield 7.28%

Current Yield reflects the current yield of the bond holdings within a fund, calculated by dividing annual income (interest or dividends) by the current price of the security.

30-day SEC Yield (Subsidized/Unsubsidized) is a standard yield calculation developed by the U.S. Securities and Exchange Commission (SEC) that allows for fairer comparisons of bond funds. It is based on the most recent 30-day period covered by the fund's filings with the SEC. Unsubsidized yield does not adjust for any fee waivers and/or expense reimbursements in effect.

This material must be preceded or accompanied by a current prospectus. Investors should read it carefully before investing or sending money.

Top 10 Holdings

Data as of 12/03/2021
Full Holdings .CSV
Rank Name % of Net Assets Ticker Identifier Shares Held Market Value($)
1 Cash 15.18% 4,432,306 4,432,306
2 HRINTH 4 PERP 2.70% XS1711550456 800,000 789,000
3 SOFTBK 6 PERP 2.70% XS1642682410 800,000 787,000
4 GLPSP 4 1/2 PERP 2.14% XS2340147813 650,000 625,950
5 NWDEVL 5 1/4 PERP 2.13% XS2132986741 600,000 622,620
6 NWSZF 5 3/4 PERP 2.12% XS1940852145 600,000 618,142
7 CAPLSP 4.076 09/20/22 2.10% XS0831700421 600,000 612,180
8 ICBCAS 3.2 PERP 2.09% XS2383421711 600,000 608,858
9 KTBTB 4.4 PERP 2.05% XS2313655677 600,000 599,280
10 NANYAN 5 PERP 1.90% XS1618163452 550,000 555,500

Holdings are subject to change.