Overview

Investment Strategy:

The KraneShares Rockefeller℠ Ocean Engagement ETF (KSEA) provides exposure to the rise of the "blue economy" by allocating to public companies whose business activities materially impact oceans and ocean resources. The blue economy is defined as economic activities that are based in and actively beneficial for the ocean. KSEA’s subadvisor Rockefeller Asset Management will proactively engage with companies held within KSEA on ocean related matters in pursuit of healthier oceans and outperformance versus its benchmark the MSCI All Country World Index. Holdings include companies from diverse sectors such as aquaculture, commercial fishing, waste management, renewable energy, and logistics, among others.

KSEA Features:

• Sub-advised by Rockefeller Asset Management, a division of Rockefeller Capital Management, which brings capabilities in engagement, sustainability, and thematic investing to institutions, high net-worth individuals, and families.
• Rockefeller Asset Management has 30 years of experience investing in global markets and long-standing partnerships with leading non-profit organizations for ocean conservation, including the Ocean Foundation, World Resources Institute and PRI.
• Direct exposure to companies and industries exposed to the blue economy, with a focus on “those that may offer the biggest potential engagement opportunities.”
• Holdings are grouped into three categories critical to ocean health and the blue economy: Ocean Leaders, Ocean Solutions, and Ocean Improvers (Companies with the intention to reduce risk to ocean environments, and may be seeking to enhance business segments that are more solution oriented).

Global Ocean and Blue Economy Features:

• Economic value derived from the ocean’s goods and services is estimated to be $282 billion in the U.S. alone, with 3 million people working in ocean sectors including tourism and recreation, shipping and transport and related goods and services.¹
• If the ocean were a country, it would represent the world's seventh largest economy. The expansion of the "blue economy" is expected to continue at twice the rate of the mainstream economy by 2030.²
• The ocean’s deep seas have already absorbed 90% of the excess heat from global warming and is the sink for 25% of human-caused CO2 emissions.³ As the ocean absorbs the heat and ocean temperatures rise, the water expands. This contributes to rising sea levels already threatening coastal communities.⁴

1. National Ocean Service, “Why should we care about the ocean?” retrieved 6/30/2024.
2. United Nations, Dept of Economic and Social Affairs, “Making waves for a blue economy”
3. Oceanpanel.org, “Why is the Ocean Important?” retrieved 6/30/2024.
4. NASA Sea Level Change, "Understanding Sea Level" Retrieved 6/30/2024.