KraneShares Announces Reverse Split and Distribution Policy Change for China Internet and Covered Call Strategy ETF (KLIP)
NEW YORK, December 31, 2024 - Krane Funds Advisors, LLC (“KraneShares”), an asset management firm known for its global exchange-traded funds (ETFs) announced changes to the KraneShares China Internet and Covered Call Strategy ETF (Ticker: KLIP), effective January 1, 2025.
Reverse Split
There will be a 1-for-3 reverse split of KLIP’s issued and outstanding shares after market close on December 31, 2024.
Key details of the reverse split include:
- Every three shares will be exchanged for one share
- The total number of issued and outstanding shares will decrease by approximately 66.67%
- Per share net asset value (NAV) and opening market price will be approximately tripled
- Trading on a split-adjusted basis will begin on January 2, 2025
Shareholders should note that while the number of shares they hold will decrease, the total value of their investment will remain unchanged. Fractional shares resulting from the split will be redeemed for cash at the split-adjusted NAV.
| Fund Name | Reverse Split Ratio | Approximate decrease in total number of outstanding shares |
| KraneShares China Internet and Covered Call Strategy ETF | 1:3 | 66% |
Hypothetical 1 for 3 Reverse Split Example
| Period | # of Shares Owned | Hypothetical NAV | Hypothetical Market Value |
| Pre-Split | 120 | $10 | $1,200 |
| Post-Split | 40 | $30 | $1,200 |
New Distribution Policy
Coinciding with the 1 for 3 reverse split KLIP will be implementing a new distribution policy:
- KLIP will continue to distribute option premium income on a monthly basis
- Monthly distributions will be capped at 2% of net asset value
- Option income exceeding 2% will remain invested in KLIP, increasing its NAV
This change aims to provide more consistent income to shareholders while providing increased NAV appreciation potential.
For more information about the KraneShares China Internet and Covered Call Strategy ETF (KLIP) and these upcoming changes, please visit www.kraneshares.com/klip, read KLIP’s summary prospectus, or contact your financial advisor.
About KraneShares
KraneShares is a specialist investment manager focused on China, Climate, and Uncorrelated Assets. KraneShares seeks to provide innovative, high-conviction, and first-to-market strategies based on the firm and its partners' deep investing knowledge. KraneShares identifies and delivers groundbreaking capital market opportunities and believes investors should have cost-effective and transparent tools for attaining exposure to various asset classes. The firm was founded in 2013 and serves institutions and financial professionals globally. The firm is a signatory of the United Nations-supported Principles for Responsib
