UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________
FORM N-CSRS
_______________
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act File Number 811-22263
KraneShares Trust
(Exact name of registrant as specified in charter)
_______________
1350 Avenue of the Americas
2nd Floor
New York, New York, 10019
(Address of principal executive offices) (Zip code)
Jonathan Krane
KraneShares Trust
1350 Avenue of the Americas
2nd Floor
New York, New York, 10019
(Name and address of agent for service)
Copy to:
Christopher D. Menconi
Bingham McCutchen LLP
2020 K Street NW
Washington, DC 20006
Registrant’s telephone number, including area code: (855) 857-2638
Date of fiscal year end: April 30, 2015
Date of reporting period: September 30, 2014
Item 1. Reports to Stockholders.
KraneShares Trust
KraneShares Bosera MSCI China A Share ETF
KraneShares CSI New China ETF
(formerly, KraneShares CSI China Five Year Plan ETF)
KraneShares CSI China Internet ETF
Semi-Annual Report
September 30, 2014
Table of Contents
![](https://capedge.com/proxy/N-CSRS/0001144204-14-072538/line.gif)
The Funds file their complete schedules of Fund holdings with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q within sixty days after the end of the period. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov, and may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that KraneShares Trust use to determine how to vote proxies relating to Fund securities, as well as information relating to how the Funds voted proxies relating to Fund securities during the most recent 12-month period ended June 30, will be available (i) without charge, upon request, by calling 1-855-8KRANE8; and (ii) on the Commission’s website at http://www.sec.gov.
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares Bosera MSCI China A Share ETF | ||
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† | Percentages are based on total investments. More narrow industries are utilized for compliance purposes, whereas broad sectors are utilized for reporting purposes. |
![]() | ![]() | |||||||
Shares | Value | |||||||
COMMON STOCK — 98.1% ‡ | ||||||||
CHINA — 98.1% | ||||||||
Consumer Discretionary — 11.7% | ||||||||
Anhui Jianghuai Automobile, Cl A | 3,100 | $ | 6,418 | |||||
Anhui Zhongding Sealing Parts, Cl A | 1,800 | 3,973 | ||||||
Beijing Gehua CATV Network, Cl A | 2,071 | 4,962 | ||||||
Beijing Wangfujing Department Store Group, Cl A | 800 | 2,457 | ||||||
Beiqi Foton Motor, Cl A | 4,592 | 4,301 | ||||||
BesTV New Media, Cl A(A)(B) | 1,582 | 8,088 | ||||||
Byd, Cl A | 1,386 | 11,023 | ||||||
Chengdu B-Ray Media, Cl A | 2,631 | 5,588 | ||||||
China CYTS Tours Holding, Cl A | 1,800 | 4,820 | ||||||
China International Travel Service, Cl A | 866 | 5,342 | ||||||
China South Publishing & Media Group, Cl A | 1,594 | 4,019 | ||||||
Chongqing Changan Automobile, Cl A | 6,193 | 13,819 | ||||||
Chongqing Department Store, Cl A | 400 | 1,461 | ||||||
Chongqing Zongshen Power Machinery, Cl A | 2,267 | 2,862 | ||||||
CITIC Guoan Information Industry, Cl A | 3,387 | 4,899 | ||||||
Dashang Group, Cl A | 900 | 4,458 | ||||||
Elec-Tech International, Cl A*(A)(B) | 2,765 | 3,670 | ||||||
FAW CAR, Cl A | 2,990 | 5,406 | ||||||
Fujian Septwolves Industry, Cl A | 1,476 | 2,604 | ||||||
Fuyao Glass Industry Group, Cl A | 4,787 | 8,202 | ||||||
GoerTek, Cl A | 2,468 | 11,075 | ||||||
Great Wall Motor, Cl A | 1,500 | 7,430 | ||||||
Gree Electric Appliances, Cl A | 8,314 | 37,551 | ||||||
Guangdong Advertising, Cl A | 1,400 | 5,733 | ||||||
Guangdong Alpha Animation and Culture, Cl A | 654 | 3,751 |
The accompanying notes are an integral part of the financial statements.
1
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Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares Bosera MSCI China A Share ETF | ||
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Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Consumer Discretionary — continued | ||||||||
Guangdong Yihua Timber Industry, Cl A(A)(B) | 3,993 | $ | 3,336 | |||||
Haining China Leather Market, Cl A | 1,193 | 2,845 | ||||||
Hisense Electric, Cl A | 2,853 | 5,400 | ||||||
Huawen Media Investment Group, Cl A | 3,700 | 7,636 | ||||||
Huayu Automotive Systems, Cl A | 3,770 | 7,897 | ||||||
Hunan TV & Broadcast Intermediary, Cl A | 2,600 | 7,178 | ||||||
Jiangling Motors, Cl A | 553 | 2,625 | ||||||
Jiangsu Phoenix Publishing & Media, Cl A(A)(B) | 2,260 | 3,942 | ||||||
Jishi Media, Cl A | 2,185 | 4,659 | ||||||
Liaoning Cheng Da, Cl A* | 4,176 | 11,033 | ||||||
Luthai Textile, Cl A | 1,597 | 2,521 | ||||||
Midea Group, Cl A | 6,191 | 20,057 | ||||||
NavInfo, Cl A | 1,600 | 6,505 | ||||||
Pang Da Automobile Trade, Cl A* | 2,359 | 2,332 | ||||||
Qingdao Haier, Cl A | 5,567 | 14,327 | ||||||
SAIC Motor, Cl A | 8,133 | 23,950 | ||||||
Shanghai Oriental Pearl Group, Cl A(A)(B) | 4,527 | 8,258 | ||||||
Shanghai Yuyuan Tourist Mart, Cl A | 3,363 | 5,056 | ||||||
Shenzhen Grandland Decoration Group, Cl A(A)(B) | 700 | 1,895 | ||||||
Shenzhen MTC, Cl A* | 2,107 | 2,890 | ||||||
Shenzhen Overseas Chinese Town, Cl A | 10,732 | 9,527 | ||||||
Sichuan Changhong Electric, Cl A(A)(B) | 12,700 | 8,957 | ||||||
Sichuan Chengfei Integration Technology, Cl A | 600 | 5,517 | ||||||
Suning Commerce Group, Cl A | 13,515 | 18,843 | ||||||
TCL, Cl A | 27,661 | 12,164 | ||||||
Wanxiang Qianchao, Cl A | 3,542 | 7,661 | ||||||
Weifu High-Technology Group, Cl A | 1,957 | 8,316 | ||||||
Yintai Resources, Cl A | 1,368 | 2,974 | ||||||
Youngor Group, Cl A | 4,900 | 6,608 | ||||||
Zhejiang Yasha Decoration, Cl A | 1,263 | 4,450 | ||||||
403,271 | ||||||||
Consumer Staples — 6.7% | ||||||||
Beijing Dabeinong Technology Group, Cl A | 2,667 | 5,990 | ||||||
Beijing Shunxin Agriculture, Cl A | 800 | 2,243 | ||||||
Beijing Yanjing Brewery, Cl A | 4,587 | 5,081 | ||||||
Beingmate Baby & Child Food, Cl A | 1,971 | 5,390 | ||||||
Bright Dairy & Food, Cl A | 1,957 | 5,221 | ||||||
Chongqing Brewery, Cl A | 687 | 1,817 | ||||||
Chuying Agro-pastora Group, Cl A(A)(B) | 1,400 | 2,486 | ||||||
Fujian Sunner Development, Cl A | 1,300 | 3,108 | ||||||
Gansu Yasheng Industrial Group Cl A | 5,395 | 7,408 | ||||||
Guangdong Haid Group, Cl A | 1,242 | 2,268 |
The accompanying notes are an integral part of the financial statements.
2
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Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares Bosera MSCI China A Share ETF | ||
![]() |
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Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Consumer Staples — continued | ||||||||
Hebei Chengde Lolo, Cl A | 980 | $ | 3,508 | |||||
Henan Shuanghui Investment & Development, Cl A | 2,354 | 12,868 | ||||||
Inner Mongolia Yili Industrial Group, Cl A | 9,020 | 38,052 | ||||||
Jiangsu Yanghe Brewery Joint-Stock, Cl A | 767 | 7,887 | ||||||
Jointown Pharmaceutical Group, Cl A | 1,159 | 3,200 | ||||||
Kweichow Moutai, Cl A | 1,519 | 40,113 | ||||||
Luzhou Laojiao, Cl A | 2,589 | 7,502 | ||||||
MeiHua Holdings Group, Cl A(A)(B) | 2,798 | 2,529 | ||||||
New Hope Liuhe, Cl A | 1,852 | 4,314 | ||||||
Shandong Denghai Seeds, Cl A | 500 | 2,876 | ||||||
Shanghai Friendship Group, Cl A | 2,777 | 5,952 | ||||||
Shanghai Jahwa United, Cl A | 1,652 | 9,660 | ||||||
Shanxi Xinghuacun Fen Wine Factory, Cl A | 1,000 | 2,705 | ||||||
Shenzhen Agricultural Products, Cl A | 3,100 | 6,438 | ||||||
Tsingtao Brewery, Cl A | 988 | 6,295 | ||||||
V V Food & Beverage, Cl A | 2,772 | 2,474 | ||||||
Wuliangye Yibin, Cl A | 6,268 | 18,857 | ||||||
Yantai Changyu Pioneer Wine, Cl A | 400 | 2,011 | ||||||
Yonghui Superstores, Cl A | 5,372 | 6,886 | ||||||
Yuan Longping High-tech Agriculture, Cl A | 2,152 | 5,282 | ||||||
Zhangzidao Group, Cl A | 884 | 2,350 | ||||||
232,771 | ||||||||
Energy — 3.9% | ||||||||
China Coal Energy, Cl A | 5,000 | 3,820 | ||||||
China Merchants Energy Shipping, Cl A | 5,199 | 2,837 | ||||||
China Oilfield Services, Cl A | 2,200 | 6,977 | ||||||
China Petroleum & Chemical, Cl A | 16,673 | 14,393 | ||||||
China Shenhua Energy, Cl A | 6,631 | 16,806 | ||||||
Datong Coal Industry, Cl A | 2,477 | 2,969 | ||||||
Guanghui Energy, Cl A* | 10,500 | 15,067 | ||||||
Guizhou Panjiang Refined Coal, Cl A | 1,470 | 1,985 | ||||||
Henan Shenhuo Coal & Power, Cl A | 3,777 | 2,885 | ||||||
Jizhong Energy Resources, Cl A | 2,465 | 2,831 | ||||||
Offshore Oil Engineering, Cl A | 6,482 | 8,605 | ||||||
PetroChina, Cl A | 11,903 | 15,103 | ||||||
Pingdingshan Tianan Coal Mining, Cl A | 3,854 | 3,063 | ||||||
SDIC Xinji Energy, Cl A | 3,264 | 2,398 | ||||||
Shanxi Lanhua Sci-Tech Venture, Cl A | 2,262 | 3,264 | ||||||
Shanxi Lu’an Environmental Energy Development, Cl A | 2,961 | 4,466 | ||||||
Shanxi Xishan Coal & Electricity Power, Cl A | 5,205 | 5,570 | ||||||
Wintime Energy, Cl A | 5,827 | 4,632 | ||||||
Wuhan Kaidi Electric Power, Cl A(A)(B) | 2,177 | 2,659 |
The accompanying notes are an integral part of the financial statements.
3
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Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares Bosera MSCI China A Share ETF | ||
![]() |
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Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Energy — continued | ||||||||
Yang Quan Coal Industry Group, Cl A | 3,996 | $ | 4,660 | |||||
Yantai Jereh Oilfield Services Group, Cl A | 1,450 | 9,206 | ||||||
134,196 | ||||||||
Financials — 31.2% | ||||||||
Agricultural Bank of China, Cl A | 86,167 | 34,947 | ||||||
Avic Capital, Cl A*(A)(B) | 2,652 | 8,134 | ||||||
Bank of Beijing, Cl A | 19,360 | 25,321 | ||||||
Bank of China, Cl A | 21,537 | 9,471 | ||||||
Bank of Communications, Cl A | 64,749 | 45,244 | ||||||
Bank of Nanjing, Cl A | 5,979 | 8,765 | ||||||
Bank of Ningbo, Cl A | 4,197 | 7,027 | ||||||
Beijing Capital Development, Cl A | 3,685 | 3,307 | ||||||
Beijing Huaye Realestate, Cl A* | 3,077 | 3,609 | ||||||
Beijing North Star, Cl A | 4,888 | 2,373 | ||||||
Beijing Urban Construction Investment & Development, Cl A | 1,996 | 3,381 | ||||||
Bohai Leasing, Cl A | 1,575 | 2,637 | ||||||
Changjiang Securities, Cl A | 9,590 | 10,669 | ||||||
China CITIC Bank, Cl A | 9,365 | 6,925 | ||||||
China Construction Bank, Cl A | 33,400 | 22,142 | ||||||
China Enterprise, Cl A | 4,413 | 4,032 | ||||||
China Everbright Bank, Cl A | 51,100 | 23,055 | ||||||
China Fortune Land Development, Cl A | 1,667 | 6,850 | ||||||
China Life Insurance, Cl A | 5,278 | 13,368 | ||||||
China Merchants Bank, Cl A | 49,100 | 83,093 | ||||||
China Merchants Property Development, Cl A | 3,821 | 7,649 | ||||||
China Merchants Securities, Cl A* | 5,339 | 10,114 | ||||||
China Minsheng Banking, Cl A | 74,500 | 75,720 | ||||||
China Pacific Insurance Group, Cl A | 9,233 | 29,190 | ||||||
China Vanke, Cl A | 30,186 | 45,135 | ||||||
CITIC Securities, Cl A | 26,965 | 58,502 | ||||||
COFCO Property Group, Cl A | 3,265 | 2,893 | ||||||
Everbright Securities, Cl A | 3,792 | 5,929 | ||||||
Financial Street Holdings, Cl A | 8,264 | 8,669 | ||||||
Founder Securities, Cl A* | 8,885 | 8,886 | ||||||
Gemdale, Cl A | 13,900 | 18,769 | ||||||
Geo-Jade Petroleum, Cl A | 1,977 | 3,726 | ||||||
GF Securities, Cl A | 6,493 | 11,580 | ||||||
Guoyuan Securities, Cl A | 2,928 | 6,538 | ||||||
Haitong Securities, Cl A | 20,800 | 34,963 | ||||||
Hangzhou Binjiang Real Estate Group, Cl A | 1,460 | 1,681 | ||||||
Huatai Securities, Cl A | 8,161 | 12,123 | ||||||
Huaxia Bank, Cl A | 11,389 | 15,749 |
The accompanying notes are an integral part of the financial statements.
4
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares Bosera MSCI China A Share ETF | ||
![]() |
![]() | ![]() | |||||||
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Financials — continued | ||||||||
Industrial & Commercial Bank of China, Cl A | 58,221 | $ | 33,475 | |||||
Industrial Bank, Cl A | 34,941 | 58,164 | ||||||
Industrial Securities, Cl A | 10,436 | 10,896 | ||||||
New China Life Insurance, Cl A | 1,481 | 5,905 | ||||||
Northeast Securities, Cl A | 3,171 | 4,979 | ||||||
Oceanwide Holdings, Cl A | 4,202 | 3,963 | ||||||
Pacific Securities, Cl A | 4,698 | 7,522 | ||||||
Ping An Bank, Cl A | 16,652 | 27,502 | ||||||
Ping An Insurance Group of China, Cl A | 13,200 | 88,882 | ||||||
Poly Real Estate Group, Cl A | 21,617 | 19,541 | ||||||
RiseSun Real Estate Development, Cl A | 2,371 | 4,109 | ||||||
Sealand Securities, Cl A | 2,068 | 3,385 | ||||||
Shaanxi International Trust, Cl A | 1,600 | 2,166 | ||||||
Shanghai AJ, Cl A | 2,552 | 4,793 | ||||||
Shanghai Chengtou Holding, Cl A | 4,875 | 5,781 | ||||||
Shanghai Industrial Development, Cl A | 1,365 | 1,914 | ||||||
Shanghai Lujiazui Finance & Trade Zone Development, Cl A | 1,200 | 3,532 | ||||||
Shanghai Pudong Development Bank, Cl A | 37,646 | 59,785 | ||||||
Shanghai Shimao, Cl A | 1,100 | 1,806 | ||||||
Shanghai Zhangjiang High-Tech Park Development, Cl A | 2,788 | 3,746 | ||||||
Shanxi Securities, Cl A | 2,820 | 3,794 | ||||||
Shenzhen Zhenye Group, Cl A | 2,496 | 2,382 | ||||||
Sinolink Securities, Cl A | 2,096 | 7,975 | ||||||
SooChow Securities, Cl A | 3,500 | 5,872 | ||||||
Southwest Securities, Cl A(A)(B) | 3,100 | 5,160 | ||||||
Suning Universal, Cl A | 2,575 | 2,282 | ||||||
Sunshine City Group, Cl A | 2,067 | 4,242 | ||||||
Western Securities, Cl A | 1,052 | 2,493 | ||||||
Xinhu Zhongbao, Cl A | 6,869 | 4,688 | ||||||
Zhejiang China Commodities City Group, Cl A | 3,967 | 4,316 | ||||||
Zhongtian Urban Development Group, Cl A | 2,385 | 2,983 | ||||||
1,080,199 | ||||||||
Health Care — 8.1% | ||||||||
Beijing SL Pharmaceutical, Cl A | 892 | 6,160 | ||||||
Beijing Tiantan Biological Products, Cl A* | 900 | 3,514 | ||||||
Beijing Tongrentang, Cl A | 2,195 | 6,771 | ||||||
Changchun High & New Technology Industries, Cl A | 355 | 5,914 | ||||||
China National Accord Medicines, Cl A | 382 | 3,217 | ||||||
China National Medicines, Cl A | 1,000 | 4,390 | ||||||
China Resources Double Crane Pharmaceutical, Cl A | 1,000 | 3,096 | ||||||
China Resources Sanjiu Medical & Pharmaceutical, Cl A | 1,391 | 4,982 | ||||||
Guangxi Wuzhou Zhongheng Group, Cl A | 3,200 | 7,344 |
The accompanying notes are an integral part of the financial statements.
5
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares Bosera MSCI China A Share ETF | ||
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![]() | ![]() | |||||||
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Health Care — continued | ||||||||
Guangzhou Baiyunshan Pharmaceutical Holdings, Cl A | 1,800 | $ | 8,168 | |||||
Guizhou Yibai Pharmaceutical, Cl A | 900 | 5,497 | ||||||
Harbin Gloria Pharmaceuticals, Cl A | 750 | 2,901 | ||||||
Harbin Pharmaceutical Group, Cl A | 3,165 | 4,366 | ||||||
Hengkang Medical Group, Cl A | 999 | 3,813 | ||||||
Huadong Medicine, Cl A | 693 | 6,761 | ||||||
Hualan Biological Engineering, Cl A | 1,100 | 5,205 | ||||||
Huapont-Nutrichem, Cl A* | 1,128 | 3,559 | ||||||
Humanwell Healthcare Group, Cl A | 1,500 | 6,748 | ||||||
Jiangsu Hengrui Medicine, Cl A | 2,491 | 15,041 | ||||||
Jiangsu Kanion Pharmaceutical, Cl A | 1,151 | 5,139 | ||||||
Jiangsu Yuyue Medical Equipment & Supply, Cl A | 661 | 3,122 | ||||||
Jilin Aodong Medicine Industry Groups, Cl A | 2,483 | 7,583 | ||||||
Joincare Pharmaceutical Group Industry, Cl A(A)(B) | 2,000 | 2,049 | ||||||
Kangmei Pharmaceutical, Cl A | 5,177 | 13,509 | ||||||
Livzon Pharmaceutical Group, Cl A(A)(B) | 358 | 3,078 | ||||||
North China Pharmaceutical, Cl A* | 2,996 | 2,996 | ||||||
Searainbow Holding, Cl A* | 2,494 | 8,742 | ||||||
Shandong Dong-E E-Jiao-A, Cl E | 1,858 | 10,547 | ||||||
Shanghai Fosun Pharmaceutical Group, Cl A | 3,779 | 11,720 | ||||||
Shanghai Kehua Bio-Engineering, Cl A | 1,398 | 6,134 | ||||||
Shanghai Pharmaceuticals Holding, Cl A | 2,769 | 6,697 | ||||||
Shanghai RAAS Blood Products, Cl A | 1,000 | 7,136 | ||||||
Shenzhen Salubris Pharmaceuticals, Cl A | 580 | 2,960 | ||||||
Shijiazhuang Yiling Pharmaceutical, Cl A | 400 | 2,077 | ||||||
Shinva Medical Instrument, Cl A | 900 | 5,484 | ||||||
Sichuan Kelun Pharmaceutical, Cl A | 1,167 | 6,048 | ||||||
Tasly Pharmaceutical Group, Cl A | 2,100 | 14,222 | ||||||
Tianjin ZhongXin Pharmaceutical Group, Cl A | 766 | 1,899 | ||||||
Tonghua Dongbao Pharmaceutical, Cl A | 2,365 | 5,381 | ||||||
Xizang Haisco Pharmaceutical Group, Cl A | 767 | 2,743 | ||||||
Yunnan Baiyao Group, Cl A | 1,875 | 15,658 | ||||||
Zhangzhou Pientzehuang Pharmaceutical, Cl A | 199 | 2,684 | ||||||
Zhejiang Conba Pharmaceutical, Cl A | 1,457 | 4,023 | ||||||
Zhejiang Hisun Pharmaceutical, Cl A | 1,491 | 4,172 | ||||||
Zhejiang Huahai Pharmaceutical, Cl A | 1,600 | 3,380 | ||||||
Zhejiang Medicine, Cl A | 2,062 | 3,698 | ||||||
Zhejiang NHU, Cl A | 1,764 | 4,333 | ||||||
Zhongyuan Union Stem Cell Bioengineering, Cl A* | 880 | 5,157 | ||||||
279,818 |
The accompanying notes are an integral part of the financial statements.
6
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares Bosera MSCI China A Share ETF | ||
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Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Industrials — 17.2% | ||||||||
Air China, Cl A | 6,155 | $ | 4,000 | |||||
AVIC Aircraft, Cl A(A)(B) | 4,399 | 11,314 | ||||||
Avic Heavy Machinery, Cl A | 1,582 | 6,725 | ||||||
Beijing New Building Material, Cl A | 900 | 2,800 | ||||||
Beijing Orient Landscape, Cl A | 1,319 | 4,045 | ||||||
Beijing SPC Environmental Protection Tech, Cl A | 852 | 2,948 | ||||||
China Aerospace Times Electronics, Cl A* | 2,868 | 7,315 | ||||||
China Avic Electronics, Cl A | 1,267 | 5,522 | ||||||
China Baoan Group, Cl A | 4,746 | 10,273 | ||||||
China CAMC Engineering, Cl A | 963 | 3,041 | ||||||
China CNR, Cl A | 13,204 | 11,334 | ||||||
China COSCO Holdings, Cl A* | 8,400 | 5,555 | ||||||
China CSSC Holdings, Cl A | 1,468 | 8,703 | ||||||
China Eastern Airlines, Cl A* | 6,207 | 3,094 | ||||||
China First Heavy Industries, Cl A | 8,428 | 4,956 | ||||||
China Gezhouba Group, Cl A | 6,831 | 5,307 | ||||||
China International Marine Containers Group, Cl A | 2,883 | 7,246 | ||||||
China National Chemical Engineering, Cl A | 5,381 | 5,715 | ||||||
China Railway Construction, Cl A | 9,414 | 8,020 | ||||||
China Railway Erju, Cl A | 2,690 | 2,594 | ||||||
China Railway Group, Cl A | 18,815 | 9,592 | ||||||
China Railway Tielong Container Logistics, Cl A | 3,290 | 3,360 | ||||||
China Shipbuilding Industry, Cl A | 16,132 | 17,237 | ||||||
China Shipping Container Lines, Cl A* | 8,652 | 4,481 | ||||||
China Shipping Development, Cl A | 2,277 | 2,062 | ||||||
China Southern Airlines, Cl A | 9,033 | 4,384 | ||||||
China Spacesat, Cl A | 2,190 | 8,557 | ||||||
China State Construction Engineering, Cl A | 44,031 | 24,312 | ||||||
China XD Electric, Cl A | 4,713 | 3,639 | ||||||
CMST Development, Cl A | 3,402 | 5,070 | ||||||
CPT Technology Group, Cl A | 721 | 2,567 | ||||||
CSR, Cl A | 12,955 | 11,099 | ||||||
Daqin Railway, Cl A | 19,085 | 24,184 | ||||||
Dazhong Transportation Group, Cl A | 2,690 | 3,387 | ||||||
Dongfang Electric, Cl A | 2,364 | 5,583 | ||||||
East China Engineering Science and Technology, Cl A | 654 | 1,960 | ||||||
Fangda Carbon New Material, Cl A | 2,785 | 4,840 | ||||||
Fujian Expressway Development, Cl A | 4,977 | 2,221 | ||||||
Fujian Longking, Cl A | 1,155 | 5,021 | ||||||
Guangdong Guangzhou Daily Media, Cl A | 872 | 2,691 | ||||||
Guangshen Railway, Cl A | 11,439 | 5,534 | ||||||
Guangxi Liugong Machinery, Cl A | 2,697 | 3,128 |
The accompanying notes are an integral part of the financial statements.
7
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares Bosera MSCI China A Share ETF | ||
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Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Industrials — continued | ||||||||
Guangzhou Baiyun International Airport, Cl A | 1,700 | $ | 2,312 | |||||
Guangzhou Shipyard International, Cl A(A)(B) | 3,300 | 9,213 | ||||||
Hafei Aviation Industry, Cl A | 500 | 2,867 | ||||||
Hainan Airlines, Cl A | 19,492 | 6,509 | ||||||
Han’s Laser Technology, Cl A | 2,696 | 8,585 | ||||||
Henan Pinggao Electric, Cl A | 2,300 | 5,155 | ||||||
Jiangsu Yueda Investment, Cl A | 2,267 | 3,992 | ||||||
Jiangsu Zhongtian Technologies, Cl A | 2,100 | 5,514 | ||||||
Jiangsu Zongyi, Cl A* | 2,574 | 4,440 | ||||||
Jiangxi Ganyue Expressway, Cl A | 4,304 | 2,384 | ||||||
Jiangxi Hongdu Aviation Industry, Cl A | 1,273 | 5,615 | ||||||
Jihua Group, Cl A | 4,200 | 2,859 | ||||||
Keda Clean Energy, Cl A | 1,856 | 5,777 | ||||||
Luxshare Precision Industry, Cl A | 690 | 3,681 | ||||||
Meidu Holding, Cl A | 4,100 | 4,341 | ||||||
Mesnac, Cl A | 1,977 | 3,961 | ||||||
Metallurgical Corp of China, Cl A | 14,916 | 6,317 | ||||||
Minmetals Development, Cl A | 1,600 | 3,216 | ||||||
NARI Technology Development, Cl A | 4,901 | 13,674 | ||||||
Ningbo Port, Cl A | 7,000 | 3,877 | ||||||
Ningbo Yunsheng Group, Cl A | 1,100 | 3,035 | ||||||
North Navigation Control Technology, Cl A | 1,400 | 5,655 | ||||||
Orient Group, Cl A | 4,601 | 5,321 | ||||||
Palm Landscape Architecture, Cl A | 664 | 2,106 | ||||||
Power Construction Corp of China, Cl A | 24,258 | 11,537 | ||||||
Rizhao Port, Cl A | 4,467 | 2,612 | ||||||
Sany Heavy Industry, Cl A | 11,197 | 10,669 | ||||||
Shanghai Construction, Cl A | 4,045 | 3,288 | ||||||
Shanghai International Airport, Cl A | 3,469 | 8,509 | ||||||
Shanghai International Port Group, Cl A(A)(B) | 7,475 | 6,453 | ||||||
Shanghai Mechanical and Electrical Industry, Cl A | 1,161 | 3,570 | ||||||
Shanghai Tunnel Engineering, Cl A | 3,840 | 3,815 | ||||||
Shanghai Waigaoqiao Free Trade Zone Development, Cl A | 683 | 3,307 | ||||||
Shanghai Zhenhua Heavy Industries, Cl A* | 5,582 | 4,055 | ||||||
Shanghai Zhixin Electric, Cl A(A)(B) | 2,300 | 4,664 | ||||||
Shanxi Coal International Energy Group, Cl A | 2,463 | 1,902 | ||||||
Shenzhen Yantian Port Holding, Cl A | 2,500 | 2,671 | ||||||
Shuangliang Eco-Energy Systems, Cl A | 1,167 | 2,062 | ||||||
Sieyuan Electric, Cl A | 1,400 | 2,697 | ||||||
Sinochem International, Cl A | 2,719 | 3,556 | ||||||
Sinoma International Engineering, Cl A | 1,554 | 2,060 | ||||||
Sinotrans Air Transportation Development, Cl A | 1,200 | 3,123 |
The accompanying notes are an integral part of the financial statements.
8
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares Bosera MSCI China A Share ETF | ||
![]() |
![]() | ![]() | |||||||
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Industrials — continued | ||||||||
Suzhou Gold Mantis Construction Decoration, Cl A | 2,917 | $ | 9,203 | |||||
Taiyuan Heavy Industry, Cl A | 5,799 | 4,052 | ||||||
TBEA, Cl A | 9,300 | 15,102 | ||||||
Tian Di Science & Technology, Cl A | 1,500 | 2,736 | ||||||
Tianjin Capital Environmental Protection Group, Cl A | 1,352 | 1,947 | ||||||
Tianjin Port, Cl A | 2,777 | 4,885 | ||||||
Tianjin Teda, Cl A | 3,500 | 2,845 | ||||||
Weichai Power, Cl A | 3,057 | 10,098 | ||||||
XCMG Construction Machinery, Cl A | 2,970 | 4,301 | ||||||
Xi’ An Aero-Engine, Cl A | 1,765 | 8,544 | ||||||
Xiamen C & D, Cl A | 5,682 | 5,942 | ||||||
Xi’An Shaangu Power, Cl A | 1,770 | 1,995 | ||||||
Xinjiang Goldwind Science & Technology, Cl A | 5,166 | 9,845 | ||||||
XJ Electric, Cl A | 2,200 | 7,489 | ||||||
Zhefu Holding Group, Cl A* | 3,600 | 4,316 | ||||||
Zhejiang Dun’An Artificial Environment, Cl A | 1,366 | 2,009 | ||||||
Zhengzhou Coal Mining Machinery Group, Cl A | 2,792 | 3,252 | ||||||
Zhengzhou Yutong Bus, Cl A | 2,981 | 8,851 | ||||||
Zoomlion Heavy Industry Science and Technology, Cl A | 13,777 | 10,973 | ||||||
594,757 | ||||||||
Information Technology — 6.1% | ||||||||
Aisino, Cl A | 1,900 | 7,795 | ||||||
Beijing Shiji Information Technology, Cl A | 300 | 3,429 | ||||||
Beijing Zhongke Sanhuan High-Tech, Cl A | 2,470 | 6,529 | ||||||
Besttone Holdings, Cl A | 665 | 2,203 | ||||||
BOE Technology Group, Cl A* | 31,055 | 12,342 | ||||||
Datang Telecom Technology, Cl A* | 1,100 | 3,286 | ||||||
DHC Software, Cl A(A)(B) | 2,260 | 6,247 | ||||||
Dongxu Optoelectronic Technology, Cl A* | 2,168 | 2,850 | ||||||
Eastern Communications, Cl A | 1,377 | 2,321 | ||||||
Fiberhome Telecommunication Technologies, Cl A | 1,565 | 4,028 | ||||||
Glodon Software, Cl A | 1,041 | 4,624 | ||||||
GRG Banking Equipment, Cl A | 1,274 | 3,800 | ||||||
Guangzhou Haige Communications Group, Cl A | 2,375 | 6,801 | ||||||
Hangzhou Hikvision Digital Technology, Cl A | 4,367 | 13,707 | ||||||
Hundsun Technologies, Cl A | 1,668 | 11,460 | ||||||
Iflytek, Cl A | 1,864 | 9,503 | ||||||
Inspur Electronic Information Industry, Cl A | 852 | 5,638 | ||||||
Neusoft, Cl A | 2,498 | 6,412 | ||||||
People.cn, Cl A | 588 | 4,695 | ||||||
Sanan Optoelectronics, Cl A | 3,546 | 8,918 | ||||||
Shanghai Aerospace Automobile Electromechanical, Cl A | 2,475 | 4,237 |
The accompanying notes are an integral part of the financial statements.
9
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares Bosera MSCI China A Share ETF | ||
![]() |
![]() | ![]() | |||||||
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Information Technology — continued | ||||||||
Shanghai DZH, Cl A*(A)(B) | 2,100 | $ | 2,045 | |||||
Shengyi Technology, Cl A | 3,074 | 3,845 | ||||||
Shenzhen Kaifa Technology, Cl A | 2,192 | 2,342 | ||||||
Shenzhen Laibao Hi-tech, Cl A | 1,654 | 3,570 | ||||||
Shenzhen O-film Tech, Cl A | 1,900 | 7,403 | ||||||
Taiji Computer, Cl A | 500 | 3,825 | ||||||
Tianjin Zhonghuan Semiconductor Joint-Stock, Cl A* | 1,100 | 3,938 | ||||||
Tongfang Guoxin Electronics, Cl A | 765 | 4,214 | ||||||
Tsinghua Tongfang, Cl A | 5,565 | 9,545 | ||||||
Wuhan Guide Infrared, Cl A | 700 | 2,668 | ||||||
YGSOFT, Cl A | 1,081 | 3,682 | ||||||
Yonyou Software, Cl A | 1,865 | 5,070 | ||||||
Zhejiang Chint Electrics, Cl A | 894 | 3,685 | ||||||
Zhejiang Dahua Technology, Cl A | 1,900 | 8,532 | ||||||
ZTE, Cl A | 6,200 | 15,309 | ||||||
210,498 | ||||||||
Materials — 9.1% | ||||||||
Advanced Technology & Materials, Cl A | 1,864 | 3,176 | ||||||
Aluminum Corp of China, Cl A* | 8,810 | 5,568 | ||||||
Anhui Conch Cement, Cl A | 6,580 | 18,412 | ||||||
Baoshan Iron & Steel, Cl A | 12,100 | 8,553 | ||||||
BBMG, Cl A | 2,567 | 2,768 | ||||||
Beijing Kangde Xin Composite Material, Cl A | 2,100 | 10,645 | ||||||
Chenzhou Mining Group, Cl A | 2,200 | 3,214 | ||||||
China Hainan Rubber Industry Group, Cl A | 3,593 | 4,898 | ||||||
China Minmetals Rare Earth, Cl A* | 1,568 | 6,089 | ||||||
China Nonferrous Metal Industry’s Foreign Engineering and Construction, Cl A | 2,198 | 4,146 | ||||||
CSG Holding, Cl A | 4,063 | 5,215 | ||||||
Guangdong Guanhao High-Tech, Cl A | 2,202 | 4,171 | ||||||
Hebei Iron & Steel, Cl A | 13,598 | 5,050 | ||||||
Henan Zhongfu Industry, Cl A | 2,882 | 2,530 | ||||||
Huaxin Cement, Cl A | 1,628 | 2,042 | ||||||
Inner Mongolia Baotou Steel Rare-Earth Hi-Tech, Cl A | 4,896 | 17,392 | ||||||
Inner Mongolia Junzheng Energy & Chemical Industry, Cl A | 2,281 | 3,128 | ||||||
Inner Mongolian Baotou Steel Union, Cl A | 29,496 | 13,404 | ||||||
Jiangxi Copper, Cl A | 2,988 | 6,726 | ||||||
Jilin Ji En Nickel Industry, Cl A | 1,152 | 2,891 | ||||||
Jilin Yatai Group, Cl A | 5,583 | 4,483 | ||||||
Jinduicheng Molybdenum, Cl A | 2,966 | 4,155 | ||||||
Kingfa Sci & Tech, Cl A | 5,600 | 4,807 | ||||||
Lianhe Chemical Technology, Cl A | 1,648 | 4,241 |
The accompanying notes are an integral part of the financial statements.
10
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares Bosera MSCI China A Share ETF | ||
![]() |
![]() | ![]() | |||||||
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Materials — continued | ||||||||
Luxin Venture Capital Group, Cl A | 792 | $ | 2,218 | |||||
Maanshan Iron & Steel, Cl A* | 8,678 | 2,799 | ||||||
Org Packaging, Cl A | 994 | 3,690 | ||||||
Pangang Group Vanadium Titanium & Resources, Cl A | 12,608 | 5,545 | ||||||
Pengxin International Mining, Cl A* | 2,400 | 6,661 | ||||||
Qinghai Salt Lake Industry, Cl A | 1,500 | 4,471 | ||||||
Rising Nonferrous Metals Share, Cl A* | 498 | 3,575 | ||||||
Shandong Chenming Paper Holdings, Cl A | 3,465 | 2,856 | ||||||
Shandong Gold Mining, Cl A(A)(B) | 2,562 | 6,906 | ||||||
Shandong Hualu Hengsheng Chemical, Cl A | 1,888 | 2,614 | ||||||
Shandong Humon Smelting, Cl A* | 765 | 1,876 | ||||||
Shandong Nanshan Aluminum, Cl A | 4,278 | 4,662 | ||||||
Shanxi Taigang Stainless Steel, Cl A | 7,280 | 3,676 | ||||||
Shenzhen Zhongjin Lingnan Nonfemet, Cl A | 4,864 | 6,069 | ||||||
Sichuan Hongda, Cl A* | 3,000 | 2,800 | ||||||
Sinopec Shanghai Petrochemical, Cl A | 6,687 | 4,215 | ||||||
Tangshan Jidong Cement, Cl A | 1,698 | 2,453 | ||||||
Tangshan Sanyou Chemical Industries, Cl A | 3,429 | 3,558 | ||||||
Tongling Nonferrous Metals Group, Cl A | 2,600 | 4,828 | ||||||
Wanhua Chemical Group, Cl A | 3,992 | 11,255 | ||||||
Western Mining, Cl A | 5,676 | 6,102 | ||||||
Wuhan Iron & Steel, Cl A | 12,851 | 4,856 | ||||||
Xiamen Tungsten, Cl A | 969 | 4,744 | ||||||
Xinjiang Zhongtai Chemical, Cl A | 3,100 | 3,848 | ||||||
Xinxing Ductile Iron Pipes, Cl A | 6,658 | 4,891 | ||||||
Yunnan Chihong Zinc & Germanium, Cl A(A)(B) | 2,961 | 5,011 | ||||||
Yunnan Copper Industry, Cl A* | 2,300 | 3,889 | ||||||
Yunnan Lincang Xinyuan Germanium Industrial, Cl A | 1,176 | 2,743 | ||||||
Yunnan Tin, Cl A | 1,700 | 4,679 | ||||||
Yunnan Yuntianhua, Cl A | 1,185 | 1,783 | ||||||
Zhejiang Juhua, Cl A | 3,016 | 3,090 | ||||||
Zhejiang Longsheng Group, Cl A | 3,869 | 9,780 | ||||||
Zhejiang Runtu, Cl A | 1,290 | 3,820 | ||||||
Zhongjin Gold, Cl A | 5,398 | 7,517 | ||||||
Zhuzhou Times New Material Technology, Cl A | 1,500 | 2,734 | ||||||
Zijin Mining Group, Cl A | 26,064 | 10,528 | ||||||
314,446 | ||||||||
Telecommunication Services — 0.8% | ||||||||
China United Network Communications, Cl A | 31,122 | 18,148 | ||||||
Dr Peng Telcom & Media Group, Cl A | 4,081 | 11,180 | ||||||
29,328 |
The accompanying notes are an integral part of the financial statements.
11
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares Bosera MSCI China A Share ETF | ||
![]() |
![]() | ![]() | |||||||
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Utilities — 3.3% | ||||||||
Beijing Capital, Cl A | 3,168 | $ | 3,973 | |||||
Chengdu Xingrong Investment, Cl A | 6,632 | 6,125 | ||||||
China Yangtze Power, Cl A | 15,052 | 19,368 | ||||||
CPI Yuanda Environmental-Protection Group, Cl A | 700 | 2,553 | ||||||
GD Power Development, Cl A | 25,284 | 10,625 | ||||||
Guangdong Baolihua New Energy Stock, Cl A | 4,393 | 3,542 | ||||||
Guangdong Electric Power Development, Cl A | 1,976 | 1,661 | ||||||
Guangdong Golden Dragon Development, Cl A | 1,500 | 4,322 | ||||||
Guangzhou Development Group, Cl A | 2,468 | 2,239 | ||||||
Huadian Power International, Cl A | 6,475 | 4,250 | ||||||
Huaneng Power International, Cl A | 7,660 | 7,648 | ||||||
Inner Mongolia MengDian HuaNeng Thermal Power, Cl A | 7,419 | 3,734 | ||||||
SDIC Power Holdings, Cl A | 12,415 | 14,013 | ||||||
Shanghai Dazhong Public Utilities Group, Cl A | 4,483 | 4,191 | ||||||
Shanghai Electric Power, Cl A | 2,382 | 1,967 | ||||||
Shenergy, Cl A | 8,286 | 6,411 | ||||||
Shenzhen Energy Group, Cl A | 2,900 | 3,387 | ||||||
Sichuan Chuantou Energy, Cl A | 2,596 | 7,510 | ||||||
Sound Environmental, Cl A | 1,664 | 6,459 | ||||||
113,978 | ||||||||
TOTAL COMMON STOCK (Cost $3,001,918) | 3,393,262 | |||||||
TOTAL INVESTMENTS — 98.1% (Cost $3,001,918) | $ | 3,393,262 |
Percentages are based on Net Assets of $3,458,149
‡ | Narrow Industries are utilized for compliance purposes, whereas broad sectors are used for reporting. |
* | Non-income producing security. |
Cl — | Class |
(A) | Security is fair valued using methods determined in good faith by the Fair Value Committee of the Fund. The total value of such securities as of September 30, 2014, was $116,094 and represents 3.4% of Net Assets. |
(B) | Securities considered illiquid. The total value of such securities as of September 30, 2014 was $116,094 and represented 3.4% of Net Assets. |
The accompanying notes are an integral part of the financial statements.
12
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares Bosera MSCI China A Share ETF | ||
![]() |
The following is a list of the inputs used as of September 30, 2014, in valuing the Fund’s investments carried at value:
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stock | ||||||||||||||||
China | ||||||||||||||||
Consumer Discretionary | $ | 365,125 | $ | — | $ | 38,146 | $ | 403,271 | ||||||||
Consumer Staples | 227,756 | — | 5,015 | 232,771 | ||||||||||||
Energy | 131,537 | — | 2,659 | 134,196 | ||||||||||||
Financials | 1,066,905 | — | 13,294 | 1,080,199 | ||||||||||||
Health Care | 274,691 | — | 5,127 | 279,818 | ||||||||||||
Industrials | 563,113 | — | 31,644 | 594,757 | ||||||||||||
Information Technology | 202,206 | — | 8,292 | 210,498 | ||||||||||||
Materials | 302,529 | — | 11,917 | 314,446 | ||||||||||||
Telecommunication Services | 29,328 | — | — | 29,328 | ||||||||||||
Utilities | 113,978 | — | — | 113,978 | ||||||||||||
Total Investments in Securities | $ | 3,277,168 | $ | — | $ | 116,094 | $ | 3,393,262 |
The following is a reconciliation of the investments in which significant unobservable inputs (Level 3) were used in determining value ($ Thousands):
![]() | ![]() | |||
Common Stock | ||||
Beginning balance as of April 1, 2014 | $ | 90,145 | ||
Accrued discounts/premiums | — | |||
Realized gain/(loss) | — | |||
Change in unrealized appreciation/(depreciation) | — | |||
Purchases | — | |||
Sales | — | |||
Transfer into Level 3 | 116,094 | |||
Transfer out of Level 3 | (90,145 | ) | ||
Ending balance as of September 30, 2014 | $ | 116,094 | ||
Changes in unrealized gains (losses) included in earnings | ||||
Related to securities held at reporting date | $ | — |
For the period ended September 30, 2014, there have been no transfers between Level 1 and Level 2 investments.
For the period ended September 30, 2014, there have been no transfers between Level 2 and Level 3 investments
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
13
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares Bosera MSCI China A Share ETF | ||
![]() |
The following table summarizes the quantitative inputs and assumptions used for items categorized as recurring Level 3 assets as of September 30, 2014. The disclosures below also include qualitative information on the sensitivity of the fair value measurements to changes in the significant unobservable inputs.
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
Asset Sub Category | Fair Value as of September 30, 2014 | Valuation Technique (All are Fair Valued – Level 3) | Unobservable Inputs | Ranges (Average) | ||||||||||||
Common Stock | $ | 116,094 | Discount/Premium from the last close price | Discount/Premium from last traded price Comparability adjustment % | 0.0% to 3.0% |
The unobservable inputs used to determine fair value of recurring Level 3 assets may have similar or diverging impacts on valuation. Significant increases and decreases in these inputs in isolation and interrelationships between those inputs could result in significantly higher or lower fair value measurement.
The accompanying notes are an integral part of the financial statements.
14
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares CSI New China ETF (formerly, KraneShares CSI China Five Year Plan ETF) | ||
![]() |
† | Percentages are based on total investments. More narrow industries are utilized for compliance purposes, whereas broad sectors are utilized for reporting purposes. |
![]() | ![]() | |||||||
Shares | Value | |||||||
COMMON STOCK — 99.6%‡ | ||||||||
CHINA — 77.1% | ||||||||
Consumer Discretionary — 9.8% | ||||||||
500.com ADR, Cl A* | 152 | $ | 5,127 | |||||
Ajisen China Holdings | 5,800 | 4,578 | ||||||
ANTA Sports Products | 5,943 | 12,108 | ||||||
Baoxin Auto Group | 4,490 | 3,365 | ||||||
Bosideng International Holdings | 28,137 | 4,058 | ||||||
Byd, Cl H | 4,309 | 28,606 | ||||||
China Distance Education Holdings ADR | 99 | 1,387 | ||||||
China Dongxiang Group | 21,938 | 4,125 | ||||||
China National Culture Group* | 22,000 | 703 | ||||||
Ctrip.com International ADR* | 948 | 53,809 | ||||||
Dongfeng Motor Group, Cl H | 20,758 | 34,111 | ||||||
E-Commerce China Dangdang ADR, Cl A* | 261 | 3,184 | ||||||
Golden Eagle Retail Group | 3,367 | 3,915 | ||||||
Goodbaby International Holdings | 5,502 | 2,374 | ||||||
Great Wall Motor, Cl H | 6,974 | 27,078 | ||||||
Guangzhou Automobile Group, Cl H | 15,135 | 14,638 | ||||||
Hisense Kelon Electrical Holdings, Cl A* | 3,121 | 3,288 | ||||||
Home Inns & Hotels Management ADR* | 226 | 6,552 | ||||||
Intime Retail Group | 7,519 | 6,391 | ||||||
Kandi Technologies Group* | 184 | 2,390 | ||||||
Li Ning* | 4,772 | 2,520 |
The accompanying notes are an integral part of the financial statements.
15
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares CSI New China ETF (formerly, KraneShares CSI China Five Year Plan ETF) | ||
![]() |
![]() | ![]() | |||||||
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Consumer Discretionary — continued | ||||||||
New Oriental Education & Technology Group* | 1,074 | $ | 24,917 | |||||
Parkson Retail Group | 11,029 | 3,196 | ||||||
Qunar Cayman Islands ADR* | 256 | 7,079 | ||||||
Shenzhou International Group Holdings | 3,378 | 10,875 | ||||||
SinoMedia Holding | 374 | 228 | ||||||
Vipshop Holdings ADR* | 237 | 44,795 | ||||||
VisionChina Media ADR* | 13 | 146 | ||||||
Zhongsheng Group Holdings | 5,444 | 5,833 | ||||||
321,376 | ||||||||
Consumer Staples — 5.0% | ||||||||
China Child Care | 5,126 | 1,135 | ||||||
China Yurun Food Group* | 10,826 | 4,782 | ||||||
Labixiaoxin Snacks Group | 3,059 | 429 | ||||||
Sun Art Retail Group | 18,359 | 20,759 | ||||||
Tingyi Cayman Islands Holding | 15,497 | 40,713 | ||||||
Tsingtao Brewery, Cl H | 1,886 | 13,431 | ||||||
Uni-President China Holdings | 8,141 | 8,136 | ||||||
Want Want China Holdings | 55,872 | 69,650 | ||||||
Yashili International Holdings | 7,892 | 2,144 | ||||||
YuanShengTai Dairy Farm* | 18,000 | 2,898 | ||||||
164,077 | ||||||||
Health Care — 4.0% | ||||||||
Consun Pharmaceutical Group | 3,000 | 2,627 | ||||||
Guangzhou Baiyunshan Pharmaceutical Holdings, Cl H | 1,296 | 4,440 | ||||||
Jintian Pharmaceutical Group | 5,000 | 2,080 | ||||||
Mindray Medical International ADR | 673 | 20,298 | ||||||
Phoenix Healthcare Group | 2,000 | 3,173 | ||||||
Shandong Weigao Group Medical Polymer, Cl H | 12,204 | 12,070 | ||||||
Shanghai Fosun Pharmaceutical Group, Cl H | 2,041 | 6,584 | ||||||
Shanghai Pharmaceuticals Holding, Cl H | 3,124 | 7,636 | ||||||
Sihuan Pharmaceutical Holdings Group | 34,024 | 25,501 | ||||||
Sinopharm Group, Cl H | 6,487 | 23,725 | ||||||
Tong Ren Tang Technologies, Cl H | 3,542 | 4,890 | ||||||
WuXi PharmaTech Cayman* | 469 | 16,424 | ||||||
129,448 |
The accompanying notes are an integral part of the financial statements.
16
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares CSI New China ETF (formerly, KraneShares CSI China Five Year Plan ETF) | ||
![]() |
![]() | ![]() | |||||||
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Industrials — 7.7% | ||||||||
51job ADR* | 142 | $ | 4,250 | |||||
Air China, Cl H | 16,141 | 10,206 | ||||||
AviChina Industry & Technology, Cl H | 15,314 | 10,946 | ||||||
Beijing Capital International Airport, Cl H | 10,538 | 8,061 | ||||||
China Communications Construction, Cl H | 31,333 | 22,597 | ||||||
China Conch Venture Holdings | 6,500 | 12,707 | ||||||
China COSCO Holdings, Cl H | 17,214 | 7,138 | ||||||
China Eastern Airlines, Cl H* | 11,141 | 3,587 | ||||||
China International Marine Containers Group, Cl H | 4,914 | 10,138 | ||||||
China Lesso Group Holdings | 7,401 | 3,689 | ||||||
China Machinery Engineering, Cl H | 6,577 | 3,769 | ||||||
China Railway Construction, Cl H | 14,575 | 13,252 | ||||||
China Railway Group, Cl H | 28,023 | 14,868 | ||||||
China Rongsheng Heavy Industries Group Holdings*(A)(B) | 8,021 | 1,333 | ||||||
China Shipping Container Lines, Cl H* | 24,187 | 6,510 | ||||||
China Shipping Development, Cl H | 9,401 | 5,896 | ||||||
China Southern Airlines, Cl H | 15,323 | 5,012 | ||||||
CSR | 13,349 | 11,741 | ||||||
Dongfang Electric, Cl H | 2,086 | 3,756 | ||||||
First Tractor, Cl H | 2,029 | 1,414 | ||||||
Fosun International | 13,357 | 16,032 | ||||||
Guodian Technology & Environment Group, Cl H | 7,833 | 1,594 | ||||||
Haitian International Holdings | 4,569 | 10,379 | ||||||
Harbin Electric, Cl H | 4,073 | 2,449 | ||||||
Jiangsu Expressway, Cl H | 6,294 | 6,639 | ||||||
JinkoSolar Holding ADR* | 134 | 3,684 | ||||||
Shanghai Electric Group, Cl H | 16,542 | 8,798 | ||||||
Sinotrans, Cl H | 10,000 | 7,263 | ||||||
Weichai Power, Cl H | 3,270 | 11,812 | ||||||
Zhejiang Expressway, Cl H | 7,482 | 7,602 | ||||||
Zhuzhou CSR Times Electric, Cl H | 4,194 | 16,203 | ||||||
253,325 | ||||||||
Information Technology — 43.9% | ||||||||
21Vianet Group ADR* | 402 | 7,236 | ||||||
58.com ADR* | 227 | 8,456 | ||||||
AAC Technologies Holdings | 5,036 | 29,250 | ||||||
Autohome ADR* | 141 | 5,924 | ||||||
Baidu ADR* | 2,510 | 547,757 | ||||||
BitAuto Holdings ADR* | 151 | 11,778 | ||||||
Canadian Solar* | 282 | 10,087 | ||||||
Forgame Holdings* | 300 | 573 |
The accompanying notes are an integral part of the financial statements.
17
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares CSI New China ETF (formerly, KraneShares CSI China Five Year Plan ETF) | ||
![]() |
![]() | ![]() | |||||||
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Information Technology — continued | ||||||||
Hanwha SolarOne ADR* | 85 | $ | 199 | |||||
HC International* | 2,000 | 3,585 | ||||||
Hollysys Automation Technologies* | 231 | 5,195 | ||||||
JA Solar Holdings ADR* | 340 | 3,145 | ||||||
Kingsoft | 5,283 | 12,559 | ||||||
NetEase ADR | 509 | 43,601 | ||||||
Perfect World | 186 | 3,663 | ||||||
Qihoo 360 Technology ADR* | 603 | 40,685 | ||||||
Semiconductor Manufacturing International* | 168,562 | 17,366 | ||||||
SINA* | 450 | 18,513 | ||||||
Sohu.com* | 196 | 9,845 | ||||||
SouFun Holdings ADR | 1,341 | 13,343 | ||||||
Sungy Mobile ADR* | 81 | 528 | ||||||
Tencent Holdings | 40,045 | 595,639 | ||||||
Trigiant Group | 6,000 | 1,646 | ||||||
Trina Solar ADR* | 487 | 5,878 | ||||||
Xinjiang Goldwind Science & Technology, Cl H | 2,867 | 4,918 | ||||||
Yingli Green Energy Holding ADR* | 934 | 2,905 | ||||||
Youku Tudou ADR* | 910 | 16,307 | ||||||
YY ADR* | 227 | 17,000 | ||||||
1,437,581 | ||||||||
Materials — 4.0% | ||||||||
Aluminum Corp of China, Cl H* | 25,141 | 10,231 | ||||||
Angang Steel, Cl H | 8,233 | 5,195 | ||||||
Anhui Conch Cement, Cl H | 8,968 | 28,642 | ||||||
BBMG, Cl H | 8,010 | 5,549 | ||||||
China BlueChemical, Cl H | 14,566 | 6,321 | ||||||
China Hongqiao Group | 7,083 | 5,318 | ||||||
China Lumena New Materials*(A)(B) | 28,720 | 2,922 | ||||||
China Molybdenum, Cl H | 7,681 | 4,679 | ||||||
China National Building Material, Cl H | 21,152 | 19,177 | ||||||
China Shanshui Cement Group | 15,572 | 5,555 | ||||||
Dongyue Group | 9,099 | 3,410 | ||||||
Jiangxi Copper, Cl H | 9,797 | 16,124 |
The accompanying notes are an integral part of the financial statements.
18
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares CSI New China ETF (formerly, KraneShares CSI China Five Year Plan ETF) | ||
![]() |
![]() | ![]() | |||||||
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Materials — continued | ||||||||
Maanshan Iron & Steel, Cl H | 13,983 | $ | 3,044 | |||||
Sinopec Yizheng Chemical Fibre, Cl H | 15,343 | 7,153 | ||||||
Yingde Gases Group | 6,702 | 6,335 | ||||||
129,655 | ||||||||
Utilities — 2.7% | ||||||||
Beijing Jingneng Clean Energy, Cl H | 9,682 | 4,152 | ||||||
China Datang Renewable Power, Cl H | 19,558 | 2,569 | ||||||
China Longyuan Power Group, Cl H | 24,012 | 23,470 | ||||||
China Suntien Green Energy | 28,000 | 6,995 | ||||||
ENN Energy Holdings | 5,352 | 35,013 | ||||||
Huadian Fuxin Energy, Cl H | 15,340 | 8,989 | ||||||
Huaneng Renewables, Cl H | 24,263 | 7,968 | ||||||
89,156 | ||||||||
TOTAL CHINA | 2,524,618 | |||||||
HONG KONG — 22.5% | ||||||||
Consumer Discretionary — 5.6% | ||||||||
Alibaba Pictures Group*(A)(B) | 40,000 | 7,469 | ||||||
Belle International Holdings | 33,799 | 37,999 | ||||||
Brilliance China Automotive Holdings | 21,174 | 36,975 | ||||||
China LotSynergy Holdings | 40,000 | 3,554 | ||||||
China ZhengTong Auto Services Holdings | 5,698 | 3,331 | ||||||
Daphne International Holdings | 9,826 | 4,973 | ||||||
Fu Shou Yuan International Group | 7,000 | 3,669 | ||||||
Geely Automobile Holdings | 39,138 | 16,381 | ||||||
GOME Electrical Appliances Holding | 68,767 | 11,159 | ||||||
Haier Electronics Group | 6,526 | 17,103 | ||||||
Hengdeli Holdings | 16,637 | 2,657 | ||||||
Man Wah Holdings | 2,400 | 3,530 | ||||||
Minth Group | 4,178 | 8,092 | ||||||
Paradise Entertainment | 4,000 | 1,484 | ||||||
Skyworth Digital Holdings | 15,388 | 7,986 | ||||||
TCL Multimedia Technology Holdings | 5,924 | 2,105 | ||||||
Xinchen China Power Holdings* | 4,495 | 2,385 | ||||||
Xinyi Glass Holdings | 21,219 | 13,253 | ||||||
184,105 |
The accompanying notes are an integral part of the financial statements.
19
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares CSI New China ETF (formerly, KraneShares CSI China Five Year Plan ETF) | ||
![]() |
![]() | ![]() | |||||||
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Consumer Staples — 5.0% | ||||||||
Biostime International Holdings | 1,209 | $ | 3,760 | |||||
China Agri-Industries Holdings | 19,255 | 7,315 | ||||||
China Foods | 8,630 | 3,412 | ||||||
China Huishan Dairy Holdings | 40,000 | 8,860 | ||||||
China Mengniu Dairy | 11,175 | 46,052 | ||||||
China Modern Dairy Holdings* | 17,102 | 7,929 | ||||||
China Resources Enterprise | 8,041 | 19,033 | ||||||
Hengan International Group | 5,911 | 58,120 | ||||||
NVC Lighting Holding(A)(B) | 14,305 | 3,261 | ||||||
Vinda International Holdings | 2,960 | 4,467 | ||||||
162,209 | ||||||||
Health Care — 1.4% | ||||||||
Beijing Tong Ren Tang Chinese Medicine | 1,723 | 2,321 | ||||||
China Medical System Holdings | 6,105 | 10,441 | ||||||
China Traditional Chinese Medicine | 9,973 | 5,009 | ||||||
CSPC Pharmaceutical Group | 11,071 | 9,167 | ||||||
Sino Biopharmaceutical | 20,370 | 20,278 | ||||||
47,216 | ||||||||
Industrials — 5.6% | ||||||||
Beijing Enterprises Holdings | 3,015 | 25,840 | ||||||
Bolina Holding | 4,000 | 1,576 | ||||||
China Everbright International | 18,453 | 24,429 | ||||||
China High Speed Transmission Equipment Group | 8,310 | 6,753 | ||||||
China Merchants Holdings International | 9,130 | 28,218 | ||||||
China Singyes Solar Technologies Holdings | 3,238 | 5,754 | ||||||
China State Construction International Holdings | 13,140 | 19,528 | ||||||
China WindPower Group* | 40,000 | 3,194 | ||||||
CIMC Enric Holdings | 6,473 | 6,469 | ||||||
CITIC Pacific | 13,332 | 22,251 | ||||||
Freetech Road Recycling Technology Holdings | 4,446 | 985 | ||||||
Kerry Logistics Network | 4,500 | 7,012 | ||||||
Lonking Holdings | 24,125 | 4,350 | ||||||
Shanghai Industrial Holdings | 4,086 | 12,103 | ||||||
Shenzhen International Holdings | 7,393 | 10,092 | ||||||
Zoomlion Heavy Industry Science and Technology | 10,599 | 6,183 | ||||||
184,737 |
The accompanying notes are an integral part of the financial statements.
20
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares CSI New China ETF (formerly, KraneShares CSI China Five Year Plan ETF) | ||
![]() |
![]() | ![]() | ![]() | ||||||
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Information Technology — 1.7% | ||||||||
Anxin-China Holdings | 12,158 | $ | 1,237 | |||||
Boyaa Interactive International | 1,000 | 989 | ||||||
Comtec Solar Systems Group* | 6,034 | 1,096 | ||||||
GCL-Poly Energy Holdings | 69,032 | 25,337 | ||||||
Shunfeng Photovoltaic International* | 6,000 | 5,416 | ||||||
Sunny Optical Technology Group | 5,869 | 8,707 | ||||||
V1 Group | 21,133 | 2,150 | ||||||
Xinyi Solar Holdings | 30,000 | 9,852 | ||||||
54,784 | ||||||||
Materials — 1.4% | ||||||||
China Resources Cement Holdings | 13,329 | 9,132 | ||||||
Huabao International Holdings | 16,528 | 12,750 | ||||||
Lee & Man Paper Manufacturing | 14,139 | 7,174 | ||||||
MMG | 11,872 | 4,159 | ||||||
Nine Dragons Paper Holdings | 12,980 | 9,344 | ||||||
Sinofert Holdings | 15,638 | 2,215 | ||||||
44,774 | ||||||||
Utilities — 1.8% | ||||||||
China Gas Holdings | 17,330 | 28,745 | ||||||
China Oil & Gas Group | 39,814 | 6,409 | ||||||
China Resources Gas Group | 5,317 | 14,380 | ||||||
CT Environmental Group | 2,000 | 1,710 | ||||||
Towngas China | 8,000 | 8,572 | ||||||
59,816 | ||||||||
TOTAL HONG KONG | 737,641 | |||||||
TOTAL COMMON STOCK (Cost $2,533,472) | 3,262,259 |
The accompanying notes are an integral part of the financial statements.
21
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares CSI New China ETF (formerly, KraneShares CSI China Five Year Plan ETF) | ||
![]() |
![]() | ![]() | ![]() | ||||||
Face Amount(1) | Value | |||||||
TIME DEPOSITS — 0.4% | ||||||||
Brown Brothers Harriman | ||||||||
0.030%, 10/01/14 | 10,571 | $ | 10,571 | |||||
0.005%, 10/01/14 HKD | 6,498 | 837 | ||||||
TOTAL TIME DEPOSITS (Cost $11,408) | 11,408 | |||||||
TOTAL INVESTMENTS — 100.0% (Cost $2,544,880) | $ | 3,273,667 | ||||||
Percentages are based on Net Assets of $3,275,068 |
‡ | Narrow Industries are utilized for compliance purposes, whereas broad sectors are used for reporting. |
* | Non-income producing security. |
(1) | In U.S. Dollars unless otherwise indicated. |
ADR — | American Depositary Receipt |
Cl — | Class |
HKD — | Hong Kong Dollar |
(A) | Security is fair valued using methods determined in good faith by the Fair Value Committee of the Fund. The total value of such security as of September 30, 2014, was $14,985 and represents 0.5% of Net Assets. |
(B) | Securities considered illiquid. The total value of such securities as of September 30, 2014 was $14,985 and represented 0.5% of Net Assets. |
The accompanying notes are an integral part of the financial statements.
22
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares CSI New China ETF (formerly, KraneShares CSI China Five Year Plan ETF) | ||
![]() |
The following is a list of the inputs used as of September 30, 2014, in valuing the Fund’s investments carried at value:
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
Level 1 | Level 2 | Level 3* | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stock | ||||||||||||||||
China | ||||||||||||||||
Consumer Discretionary | $ | 321,376 | $ | — | $ | — | $ | 321,376 | ||||||||
Consumer Staples | 164,077 | — | — | 164,077 | ||||||||||||
Health Care | 129,448 | — | — | 129,448 | ||||||||||||
Industrials | 251,992 | — | 1,333 | 253,325 | ||||||||||||
Information Technology | 1,437,581 | — | — | 1,437,581 | ||||||||||||
Materials | 126,733 | — | 2,922 | 129,655 | ||||||||||||
Utilities | 89,156 | — | — | 89,156 | ||||||||||||
Hong Kong | ||||||||||||||||
Consumer Discretionary | 176,636 | — | 7,469 | 184,105 | ||||||||||||
Consumer Staples | 158,948 | — | 3,261 | 162,209 | ||||||||||||
Health Care | 47,216 | — | — | 47,216 | ||||||||||||
Industrials | 184,737 | — | — | 184,737 | ||||||||||||
Information Technology | 54,784 | — | — | 54,784 | ||||||||||||
Materials | 44,774 | — | — | 44,774 | ||||||||||||
Utilities | 59,816 | — | — | 59,816 | ||||||||||||
Total Common Stock | 3,247,274 | — | 14,985 | 3,262,259 | ||||||||||||
Time Deposits | — | 11,408 | — | 11,408 | ||||||||||||
Total Investments in Securities | $ | 3,247,274 | $ | 11,408 | $ | 14,985 | $ | 3,273,667 |
* | A reconciliation of Level 3 investments and disclosures of significant unobservable inputs are presented when the Fund has a significant amount of Level 3 investments during the period in relation to net assets. Management has concluded that Level 3 investments are not material in relation to net assets. |
For the period ended September 30, 2014, there have been no transfers between Level 1 and Level 2 investments.
For the period ended September 30, 2014, there have been no transfers between Level 2 and Level 3 investments.
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
23
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares CSI China Internet ETF | ||
![]() |
† | Percentages are based on total investments. More narrow industries are utilized for compliance purposes, whereas broad sectors are utilized for reporting purposes. |
![]() | ![]() | ![]() | ||||||
Shares | Value | |||||||
COMMON STOCK — 99.7% | ||||||||
CHINA — 97.5% | ||||||||
Consumer Discretionary — 24.5% | ||||||||
500.com ADR, Cl A* | 57,964 | $ | 1,955,126 | |||||
Ctrip.com International ADR* | 137,263 | 7,791,048 | ||||||
E-Commerce China Dangdang ADR, Cl A* | 101,046 | 1,232,761 | ||||||
eLong ADR* | 18,115 | 372,807 | ||||||
JD.com ADR* | 319,709 | 8,254,886 | ||||||
LightinTheBox Holding ADR* | 59,638 | 372,738 | ||||||
Qunar Cayman Islands ADR* | 84,492 | 2,336,204 | ||||||
Vipshop Holdings ADR* | 30,140 | 5,696,761 | ||||||
28,012,331 | ||||||||
Industrials — 1.5% | ||||||||
51job ADR* | 57,740 | 1,728,158 | ||||||
Information Technology — 71.5% | ||||||||
21Vianet Group ADR* | 161,395 | 2,905,110 | ||||||
58.com ADR* | 81,607 | 3,039,861 | ||||||
Autohome ADR* | 52,454 | 2,203,593 | ||||||
Baidu ADR* | 59,112 | 12,900,012 | ||||||
BitAuto Holdings ADR* | 63,626 | 4,962,828 | ||||||
Changyou.com ADR* | 27,530 | 658,793 | ||||||
China Binary Sale Technology* | 220,000 | 36,548 | ||||||
China Finance Online ADR* | 65,755 | 451,737 | ||||||
China Mobile Games & Entertainment Group ADR* | 33,285 | 700,649 | ||||||
Forgame Holdings* | 150,900 | 288,387 |
The accompanying notes are an integral part of the financial statements.
24
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares CSI China Internet ETF | ||
![]() |
![]() | ![]() | ![]() | ||||||
Shares | Value | |||||||
COMMON STOCK — continued | ||||||||
Information Technology — continued | ||||||||
Jiayuan.com International ADR | 34,388 | $ | 225,585 | |||||
Kingsoft | 1,514,260 | 3,599,856 | ||||||
KongZhong ADR* | 83,857 | 546,747 | ||||||
Ku6 Media ADR* | 44,064 | 55,521 | ||||||
NetEase ADR | 63,572 | 5,445,577 | ||||||
Pacific Online | 740,000 | 396,440 | ||||||
Perfect World | 80,546 | 1,585,951 | ||||||
Phoenix New Media ADR* | 97,084 | 907,735 | ||||||
Qihoo 360 Technology ADR* | 76,047 | 5,130,891 | ||||||
Renren ADR* | 277,111 | 953,262 | ||||||
Shanda Games ADR* | 198,570 | 1,298,648 | ||||||
SINA* | 100,143 | 4,119,883 | ||||||
Sky-mobi ADR* | 33,198 | 269,900 | ||||||
Sohu.com* | 75,190 | 3,776,794 | ||||||
SouFun Holdings ADR | 411,408 | 4,093,510 | ||||||
Sungy Mobile ADR* | 44,003 | 286,899 | ||||||
Tencent Holdings | 785,165 | 11,678,737 | ||||||
Youku Tudou ADR* | 233,876 | 4,191,058 | ||||||
YY ADR* | 67,324 | 5,041,894 | ||||||
81,752,406 | ||||||||
TOTAL CHINA | 111,492,895 | |||||||
HONG KONG — 2.2% | ||||||||
Information Technology — 2.2% | ||||||||
Boyaa Interactive International | 865,000 | 855,520 | ||||||
NetDragon Websoft | 612,400 | 1,004,749 | ||||||
V1 Group | 6,858,264 | 697,741 | ||||||
TOTAL HONG KONG | 2,558,010 | |||||||
TOTAL COMMON STOCK (Cost $117,591,056) | 114,050,905 |
The accompanying notes are an integral part of the financial statements.
25
![]() | ![]() | |
Schedule of Investments (unaudited) | September 30, 2014 | |
KraneShares CSI China Internet ETF | ||
![]() |
![]() | ![]() | ![]() | ||||||
Face Amount(1) | Value | |||||||
TIME DEPOSITS — 0.3% | ||||||||
Brown Brothers Harriman | ||||||||
0.030%, 10/01/14 | 290,769 | $ | 290,769 | |||||
0.005%, 10/01/14 HKD | 5,600 | 721 | ||||||
TOTAL TIME DEPOSITS (Cost $291,490) | 291,490 | |||||||
TOTAL INVESTMENTS — 100.0% (Cost $117,882,546) | $ | 114,342,395 |
Percentages are based on Net Assets of $114,309,474
* | Non-income producing security. |
(1) | In U.S. Dollars unless otherwise indicated. |
ADR | — American Depositary Receipt |
Cl | — Class |
HKD | — Hong Kong Dollar |
The following is a summary of the inputs used as of September 30, 2014, in valuing the Fund’s investments carried at value:
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Investments in Securities | ||||||||||||||||
Common Stock | $ | 114,050,905 | $ | — | $ | — | $ | 114,050,905 | ||||||||
Time Deposits | — | 291,490 | — | 291,490 | ||||||||||||
Total Investments in Securities | $ | 114,050,905 | $ | 291,490 | $ | — | $ | 114,342,395 |
For the period ended September 30, 2014, there have been no transfers between Level 1 and Level 2 investments.
For the period ended September 30, 2014, there have been no transfers between Level 2 and Level 3 investments.
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
26
Statements of Assets and Liabilities (unaudited)
September 30, 2014
![]() | ![]() | ![]() | ![]() | |||||||||
KraneShares Bosera MSCI China A Share ETF | KraneShares CSI New China ETF | KraneShares CSI China Internet ETF | ||||||||||
Assets: | ||||||||||||
Cost of Investments | $ | 3,001,918 | $ | 2,544,880 | $ | 117,882,546 | ||||||
Cost of Foreign Currency | 53,998 | 12,400 | — | |||||||||
Investments at Value | $ | 3,393,262 | $ | 3,273,667 | $ | 114,342,395 | ||||||
Foreign Currency at Value | 54,078 | 155 | — | |||||||||
Cash | 13,188 | — | — | |||||||||
Receivable for Capital Shares Sold | — | — | 3,550,389 | |||||||||
Dividend and Interest Receivable | — | 3,326 | — | |||||||||
Total Assets | 3,460,528 | 3,277,148 | 117,892,784 | |||||||||
Liabilities: | ||||||||||||
Payable for Investment Securities Purchased | — | — | 3,523,096 | |||||||||
Payable due to Investment Adviser | 2,379 | 1,920 | 60,214 | |||||||||
Payable to Custodian | — | 160 | — | |||||||||
Total Liabilities | 2,379 | 2,080 | 3,583,310 | |||||||||
Net Assets | $ | 3,458,149 | $ | 3,275,068 | $ | 114,309,474 | ||||||
Net Assets Consist of: | ||||||||||||
Paid-in Capital | $ | 3,461,496 | $ | 2,509,994 | $ | 118,515,276 | ||||||
Undistributed (Distributions in Excess of) Net Investment Income | 9,760 | 1,084 | (729,288 | ) | ||||||||
Accumulated Net Realized Gain (Loss) on Investments and Foreign Currency Translations | (404,531 | ) | 35,209 | 63,637 | ||||||||
Net Unrealized Appreciation (Depreciation) on Investments | 391,344 | 728,787 | (3,540,151 | ) | ||||||||
Net Unrealized Appreciation (Depreciation) on Foreign Currency Translations | 80 | (6 | ) | — | ||||||||
Net Assets | $ | 3,458,149 | $ | 3,275,068 | $ | 114,309,474 | ||||||
Outstanding Shares of Beneficial Interest (unlimited authorization — no par value) | 100,002 | 50,000 | 3,300,000 | |||||||||
Net Asset Value, Offering and Redemption Price Per Share | $ | 34.58 | $ | 65.50 | $ | 34.64 |
The accompanying notes are an integral part of the financial statements.
27
Statements of Operations (unaudited)
For the period ended September 30, 2014
![]() | ![]() | ![]() | ![]() | |||||||||
KraneShares Bosera MSCI China A Share ETF | KraneShares CSI New China ETF | KraneShares CSI China Internet ETF | ||||||||||
Investment Income: | ||||||||||||
Dividend Income | $ | 81,424 | $ | 31,988 | $ | 212,952 | ||||||
Interest Income | 356 | 1 | 18 | |||||||||
Less: Foreign Taxes Withheld | (8,525 | ) | (1,210 | ) | (22,067 | ) | ||||||
Total Investment Income | 73,255 | 30,779 | 190,903 | |||||||||
Advisory Fees | 26,924 | 11,165 | 281,066 | |||||||||
Total Expenses | 26,924 | 11,165 | 281,066 | |||||||||
Advisory Fee Waiver | (1,835 | ) | – | – | ||||||||
Net Investment Income (Loss) | 48,166 | 19,614 | (90,163 | ) | ||||||||
Net Realized Gain (Loss) on: | ||||||||||||
Investments(1) | (432,223 | ) | 17,667 | 239,601 | ||||||||
Foreign Currency Transactions | 28,788 | (2 | ) | (120 | ) | |||||||
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions | (403,435 | ) | 17,665 | 239,481 | ||||||||
Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
Investments | 821,677 | 112,663 | (6,768,781 | ) | ||||||||
Foreign Currency Transactions | 190 | (6 | ) | — | ||||||||
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions | 821,867 | 112,657 | (6,768,781 | ) | ||||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions | 418,432 | 130,322 | (6,529,300 | ) | ||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 466,598 | $ | 149,936 | $ | (6,619,463 | ) |
(1) | Includes realized gains (losses) as a result of in-kind redemptions. (See Note 4 in Notes to Financial Statements.) |
The accompanying notes are an integral part of the financial statements.
28
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ||||||
KraneShares Bosera MSCI China A Share ETF | ||||||||
Period Ended September 30, 2014 (unaudited) | Period Ended March 31, 2014(1) | |||||||
Operations: | ||||||||
Net Investment Income (Loss) | $ | 48,166 | $ | (6,951 | ) | |||
Net Realized Loss on Investments and Foreign Currency Transactions | (403,435 | ) | (32,551 | ) | ||||
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions | 821,867 | (430,443 | ) | |||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 466,598 | (469,945 | ) | |||||
Capital Share Transactions: | ||||||||
Issued | 34,436 | 12,036,060 | ||||||
Redeemed | (8,609,000 | ) | — | |||||
Increase (Decrease) in Net Assets from Capital Share Transactions | (8,574,564 | ) | 12,036,060 | |||||
Total Increase (Decrease) in Net Assets | (8,107,966 | ) | 11,566,115 | |||||
Net Assets: | ||||||||
Beginning of Period | 11,566,115 | — | ||||||
End of Period | $ | 3,458,149 | $ | 11,566,115 | ||||
Undistributed Net Investment Income/Accumulated Net Investment Loss | $ | 9,760 | $ | (38,406 | ) | |||
Share Transactions: | ||||||||
Issued | — | 400,002 | ||||||
Redeemed | (300,000 | ) | — | |||||
Net Increase (Decrease) in Shares Outstanding from Share Transactions | (300,000 | ) | 400,002 |
(1) | Commenced operations on March 4, 2014. |
The accompanying notes are an integral part of the financial statements.
29
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ||||||
KraneShares CSI New China ETF | ||||||||
Period Ended September 30, 2014 (unaudited) | Period Ended March 31, 2014(1) | |||||||
Operations: | ||||||||
Net Investment Income (Loss) | $ | 19,614 | $ | (4,932 | ) | |||
Net Realized Gain on Investments and Foreign Currency Transactions | 17,665 | 697,984 | ||||||
Net Change in Unrealized Appreciation on Investments and Foreign Currency Transactions | 112,657 | 616,124 | ||||||
Net Increase in Net Assets Resulting from Operations | 149,936 | 1,309,176 | ||||||
Dividends and Distributions from: | ||||||||
Net Investment Income | (17,544 | ) | — | |||||
Net Realized Gains | — | — | ||||||
Total Dividends and Distributions | (17,544 | ) | — | |||||
Capital Share Transactions: | ||||||||
Issued | — | 5,000,050 | ||||||
Redeemed | — | (3,166,550 | ) | |||||
Increase in Net Assets from Capital Share Transactions | — | 1,833,500 | ||||||
Total Increase in Net Assets | 132,392 | 3,142,676 | ||||||
Net Assets: | ||||||||
Beginning of Period | 3,142,676 | — | ||||||
End of Period | $ | 3,275,068 | $ | 3,142,676 | ||||
Undistributed Net Investment Income/Accumulated Net Investment Loss | $ | 1,084 | $ | (986 | ) | |||
Share Transactions: | ||||||||
Issued | — | 100,000 | ||||||
Redeemed | — | (50,000 | ) | |||||
Net Increase in Shares Outstanding from Share Transactions | — | 50,000 |
(1) | Commenced operations on July 22, 2013. |
The accompanying notes are an integral part of the financial statements.
30
Statements of Changes in Net Assets
![]() | ![]() | ![]() | ||||||
KraneShares CSI China Internet ETF | ||||||||
Period Ended September 30, 2014 (unuadited) | Period Ended March 31, 2014(1) | |||||||
Operations: | ||||||||
Net Investment Loss | $ | (90,163 | ) | $ | (14,302 | ) | ||
Net Realized Gain (Loss) on Investments and Foreign Currency Transactions | 239,481 | (136,442 | ) | |||||
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions | (6,768,781 | ) | 3,228,630 | |||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (6,619,463 | ) | 3,077,886 | |||||
Dividends and Distributions from: | ||||||||
Net Investment Income | (596,577 | ) | (28,550 | ) | ||||
Net Realized Gains | — | (39,098 | ) | |||||
Total Dividends and Distributions | (596,577 | ) | (67,648 | ) | ||||
Capital Share Transactions: | ||||||||
Issued | 49,171,276 | 74,233,000 | ||||||
Redeemed | (4,889,000 | ) | — | |||||
Increase in Net Assets from Capital Share Transactions | 44,282,276 | 74,233,000 | ||||||
Total Increase in Net Assets | 37,066,236 | 77,243,238 | ||||||
Net Assets: | ||||||||
Beginning of Period | 77,243,238 | — | ||||||
End of Period | $ | 114,309,474 | $ | 77,243,238 | ||||
Distributions in Excess of Net Investment Income | $ | (729,288 | ) | $ | (42,548 | ) | ||
Share Transactions: | ||||||||
Issued | 1,300,000 | 2,150,000 | ||||||
Redeemed | (150,000 | ) | — | |||||
Net Increase in Shares Outstanding from Share Transactions | 1,150,000 | 2,150,000 |
(1) | Commenced operations on July 31, 2013. |
The accompanying notes are an integral part of the financial statements.
31
![[GRAPHIC MISSING]](https://capedge.com/proxy/N-CSRS/0001144204-14-072538/logo_krane-shares2a.jpg)
Financial Highlights
![](https://capedge.com/proxy/N-CSRS/0001144204-14-072538/line.gif)
Selected Per Share Data & Ratios
For the Periods Ended September 30, 2014 (unaudited) and March 31, 2014
For a Share Outstanding Throughout the Period
![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period ($) | Net Investment Income (Loss) ($)* | Net Realized and Unrealized Gain (Loss) on Investments ($) | Total from Operations ($) | Distribution from Net Investment Income ($) | Distribution from Capital Gains ($) | Total from Distributions ($) | Net Asset Value, End of Period ($) | Total Return (%)** | Net Assets End of Period ($)(000) | Ratio of Expenses to Average Net Assets (%) | Ratio of Expenses to Average Net Assets (Excluding Fees Paid Indirectly and Waivers) (%) | Ratio of Net Investment Income (Loss) to Average Net Assets (%) | Portfolio Turnover (%) | |||||||||||||||||||||||||||||||||||||||||||
KraneShares Bosera MSCI China A Share ETF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014*** | 28.92 | 0.30 | 5.36 | 5.66 | — | — | — | 34.58 | 19.57 | 3,458 | 1.03† | 1.10† | 1.97 † | 6†† | ||||||||||||||||||||||||||||||||||||||||||
2014(1) | 30.00 | (0.02 | ) | (1.06 | ) | (1.08 | ) | — | — | — | 28.92 | (3.60 | ) | 11,566 | 1.10† | 1.10† | (0.84)† | —†† | ||||||||||||||||||||||||||||||||||||||
KraneShares CSI New China ETF(4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014*** | 62.85 | 0.39 | 2.61 | 3.00 | (0.35 | ) | — | (0.35 | ) | 65.50 | 4.79 | 3,275 | 0.68† | 0.68† | 1.19 † | 7†† | ||||||||||||||||||||||||||||||||||||||||
2014(2) | 50.00 | (0.06 | ) | 12.91 | 12.85 | — | — | — | 62.85 | 25.70 | 3,143 | 0.68† | 0.68† | (0.15)† | 7†† | |||||||||||||||||||||||||||||||||||||||||
KraneShares CSI China Internet ETF | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2014*** | 35.93 | (0.04 | ) | (0.96 | ) | (1.00 | ) | (0.29 | ) | — | (0.29 | ) | 34.64 | (2.80 | ) | 114,309 | 0.68† | 0.68† | (0.22)† | 26†† | ||||||||||||||||||||||||||||||||||||
2014(3) | 25.00 | (0.02 | ) | 11.05 | 11.03 | (0.06 | ) | (0.04 | ) | (0.10 | ) | 35.93 | 44.18 | 77,243 | 0.68† | 0.68† | (0.09)† | 8†† |
(1) | The Fund commenced operations on March 4, 2014. |
(2) | The Fund commenced operations on July 22, 2013. |
(3) | The Fund commenced operations on July 31, 2013. |
(4) | Effective August 1st, 2014, the KraneShares CSI China Five Year Plan ETF changed its name to KraneShares CSI New China ETF. |
* | Per share data calculated using average shares method. |
** | Total return is based on the change in net asset value of a share during the year or period and assumes reinvestment of dividends and distributions at net asset value. Total return is for the period indicated and periods of less than one year have not been annualized. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
*** | For the six-month period ended September 30, 2014. All ratios for the period have been annualized. |
† | Annualized. |
†† | Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
32
Notes to Financial Statements (unaudited)
1. ORGANIZATION
KraneShares Trust (the “Trust”) is a Delaware Statutory Trust formed on February 3, 2012. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. As of September 30, 2014, the Trust had six portfolios (three of which were operational). The financial statements herein and the related notes pertain to the KraneShares Bosera MSCI China A Share ETF, KraneShares CSI New China ETF (formerly, the KraneShares CSI China Five Year Plan ETF) and KraneShares CSI China Internet ETF (each a “Fund” and collectively, the “Funds”). KraneShares Bosera MSCI China A Share ETF is diversified; while the KraneShares CSI New China ETF and KraneShares CSI China Internet ETF are non-diversified. Krane Funds Advisors, LLC (the “Adviser”), a Delaware limited liability company, serves as the investment adviser for the Funds and is subject to the supervision of the Board of Trustees (the “Board”). The Adviser is responsible for managing the investment activities of the Funds, the Funds’ business affairs and other administrative matters. The KraneShares Bosera MSCI China A Share ETF commenced operations on March 4, 2014. The KraneShares CSI New China ETF commenced operations on July 22, 2013. The KraneShares CSI China Internet ETF commenced operations on July 31, 2013.
Effective August 1st, 2014, the KraneShares CSI China Five Year Plan ETF changed its name to KraneShares CSI New China ETF.
Shares of each Fund are listed and traded on the NYSE Arca, Inc. Market prices for the Shares may be different from their net asset value (“NAV”). The Funds issue and redeem Shares on a continuous basis at NAV only in large blocks of Shares, typically 50,000 Shares, called Creation Units (“Creation Units”). With respect to the KraneShares CSI New China ETF and KraneShares CSI China Internet ETF, Creation Units will be issued and redeemed principally in-kind for a basket of securities and a balancing cash amount. With respect to the KraneShares Bosera MSCI China A Share ETF, Creation Units will be issued and redeemed principally for cash. To the extent the KraneShares Bosera MSCI China A Share ETF permits in kind consideration for the purchase of a Creation Unit, such Creation Unit will be issued and redeemed for a basket of securities and a balancing cash amount. Shares generally will trade in the secondary market in amounts less than a Creation Unit at market prices that change throughout the day.
The investment objective of each Fund is to seek investment results that generally correspond (before fees, and expenses) to its respective index listed below (each, an “Underlying Index”):
![]() | ![]() | |
Fund | Index | |
KraneShares Bosera MSCI China A Share ETF | MSCI China A International Index | |
KraneShares CSI New China ETF | CSI Overseas China Five-Year Plan Index | |
KraneShares CSI China Internet ETF | CSI Overseas China Internet Index |
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed by the Funds.
USE OF ESTIMATES — The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates, and could have a material impact to the Funds.
33
Notes to Financial Statements (unaudited)
2. SIGNIFICANT ACCOUNTING POLICIES – (continued)
SECURITY VALUATION — Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ), including securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded (or at approximately 4:00 pm Eastern Standard Time if a security’s primary exchange is normally open at that time), or, if there is no such reported sale, at the most recent mean between the quoted bid and asked prices (absent both bid and asked prices on such exchange, the bid price may be used).
For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Prices for most securities held in the Funds are provided daily by recognized independent pricing agents. If a security price cannot be obtained from an independent, third-party pricing agent, the Funds seek to obtain a bid price from at least one independent broker.
Securities for which market prices are not “readily available” are valued in accordance with Fair Value Procedures established by the Board. The Funds’ Fair Value Procedures are implemented through a Fair Value Committee (the “Committee”) designated by the Board. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security’s trading has been halted or suspended; the security has been de-listed from its primary trading exchange; the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; the security has not been traded for an extended period of time; the security’s primary pricing source is not able or willing to provide a price; or trading of the security is subject to local government-imposed restrictions. In addition, the Funds may fair value their securities if an event that may materially affect the value of the Funds’ securities that traded outside of the United States (a “Significant Event”) has occurred between the time of the security’s last close and the time that the Funds calculate their net asset value. A Significant Event may relate to a single issuer or to an entire market sector. Events that may be Significant Events include: government actions, natural disasters, armed conflict, acts of terrorism and significant market fluctuations. If the Adviser becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Funds calculate net asset value, it may request that a Committee meeting be called. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration all relevant information reasonably available to the Committee.
As of September 30, 2014, the total market value of securities valued in accordance with Fair Value Procedures is as follows:
![]() | ![]() | ![]() | ||||||
Fair Valued Amount | % of Net Assets | |||||||
KraneShares Bosera MSCI China A Share ETF | $ | 116,094 | 3.40 | % | ||||
KraneShares CSI New China ETF | 14,985 | 0.50 |
34
Notes to Financial Statements (unaudited)
2. SIGNIFICANT ACCOUNTING POLICIES – (continued)
In accordance with the authoritative guidance on fair value measurements and disclosure under U.S. GAAP, the Funds disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:
Level 1 — Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date.
Level 2 — Other significant observable inputs (including quoted prices in non-active markets, quoted prices for similar investments, fair value of investments for which the Funds have the ability to fully redeem tranches at net asset value as of the measurement date or within the near term, and short-term investments valued at amortized cost).
Level 3 — Significant unobservable inputs (including the Funds own assumptions in determining the fair value of investments, fair value of investments for which the Funds’ do not have the ability to fully redeem tranches at net asset value as of the measurement date or within the near term).
Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement.
For the period ended September 30, 2014, there have been no significant changes to the Funds’ fair valuation methodologies.
FEDERAL INCOME TAXES — It is each Fund’s intention to qualify or continue to qualify as a regulated investment company for Federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Internal Revenue Code of 1986, as amended and to distribute substantially all of its taxable income and gains to shareholders. Accordingly, no provisions for Federal income taxes have been made in the financial statements.
The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is “more-likely-than-not” (i.e., greater than 50 percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Funds did not record any tax provisions in the current period. However, management’s conclusions regarding tax positions may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities (i.e., the last three tax year ends, as applicable), on-going analysis of and changes to tax laws, regulations and interpretations thereof.
As of and during the periods ended September 30, 2014, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of Operations. During the period, the Funds did not incur any interest or penalties.
35
Notes to Financial Statements (unaudited)
2. SIGNIFICANT ACCOUNTING POLICIES – (continued)
SECURITY TRANSACTIONS AND INVESTMENT INCOME — Security transactions are accounted for on the trade date for financial reporting purposes. Costs used in determining realized gains and losses on the sale of investment securities are based on specific identification. Dividend Income generally recorded on the ex-dividend date. Dividend income for certain issuers headquartered in countries which the Funds invest may not be recorded until approved by the shareholders (which may occur after the ex-dividend date) if, in the judgment of management, such dividends are not reasonably determined as of the ex-dividend date. Interest income is recognized on the accrual basis from the settlement date.
FOREIGN CURRENCY TRANSLATION — The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the relevant rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of realized or unrealized gains and losses resulting from changes in the foreign exchange rate from fluctuations arising from changes in the market prices of the securities. These gains and losses are included in net realized and unrealized gains and losses on investments on the Statement of Operations. Net realized and unrealized gains and losses on foreign currency transactions represent net foreign exchange gains or losses from foreign currency exchange contracts, disposition of foreign currencies, currency gains or losses realized between trade and settlement dates on securities transactions and the difference between the amount of the investment income and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS — The Funds distribute their net investment income semi-annually. Any net realized capital gains are distributed annually. All distributions are recorded on the ex-dividend date.
CREATION UNITS — The Funds issue and redeem shares (“Shares”) at Net Asset Value (“NAV”) and only in large blocks of Shares (each block of Shares for a Fund is a Creation Unit or multiples thereof). The maximum creation and redemption fees for the KraneShares CSI New China ETF is $8,000. The KraneShares Bosera MSCI China A Share ETF and the KraneShares CSI China Internet ETF have a standard creation and redemption fee of $6,000 and a variable fee. These fees are subject to adjustment from time to time by the Adviser.
Except when aggregated in Creation Units, shares are not redeemable securities of a Fund. Shares of a Fund may only be purchased or redeemed by certain Authorized Participants. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a DTC participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors will not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the shares directly from the Fund. Rather, most retail investors will purchase shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees.
36
Notes to Financial Statements (unaudited)
2. SIGNIFICANT ACCOUNTING POLICIES – (continued)
If a Creation Unit is purchased or redeemed for cash, a higher transaction fee will be charged. The KraneShares Bosera MSCI China A Share ETF generally expects that Creation Units of the Fund issued and redeemed principally for cash. The following table discloses Creation Unit breakdown as of September 30, 2014:
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
Creation Unit Shares | Transaction Fee | Value | Redemption Fee | |||||||||||||
KraneShares Bosera MSCI China A ETF(1) | $ | 300,000 | $ | — | $ | 8,609,000 | $ | 12,000 | ||||||||
KraneShares CSI China Internet ETF(2) | 1,150,000 | 9,000 | 44,282,276 | 1,000 |
(1) | Commenced operations on March 4, 2014. |
(2) | Commenced operations on July 31, 2013. |
Organizational Expenses
All organizational and offering expenses of the Trust were borne by the Adviser and will not be subject to future recoupment. As a result, organizational and offering expenses are not reflected in the statement of assets and liabilities.
Concentration of Risk
Cash at September 30, 2014, is held in time deposits at Brown Brothers Harriman. Amounts may exceed federally insured limits.
3. RELATED PARTY TRANSACTIONS
Investment Advisory Agreement
The Adviser is responsible for the day-to-day management of each Fund listed below, and continuously reviews, supervises, and administers the Funds’ investment program. The Board of Trustees of the Trust supervises the Adviser and establishes policies that the Adviser must follow in its day-to-day management activities. Pursuant to an investment advisory agreement between the Trust and the Adviser, the Funds below pay the Adviser a fee, which is calculated daily and paid monthly, at the following annual rates, based on a percentage of the average daily net assets of each Fund:
![]() | ![]() | |||
Management Fee | ||||
KraneShares Bosera MSCI China A Share ETF | 1.10 | % | ||
KraneShares CSI New China ETF | 0.68 | % | ||
KraneShares CSI China Internet ETF | 0.68 | % |
Effective July 10, 2014, Krane has contractually agreed to reduce its management fee to the extent necessary to keep the KraneShares Bosera MSCI China A Share Fund’s total annual operating expenses (except interest expense, taxes, Acquired Fund Fees and Expenses, if any, brokerage commissions, derivative counterparty fees, and other expenses connected with the execution of portfolio transactions, expenses of the Independent Trustees (including any Trustees’ counsel fees), extraordinary expenses, distribution fees and expenses paid by the Trust under any distribution plan adopted pursuant to Rule 12b-1 under the 1940 Act, if any) from exceeding 0.85% of the Fund’s average daily net assets. This contractual fee waiver will continue in effect through at least July 31, 2015. The Expense Limitation Agreement may be terminated by the Board upon sixty (60) days’ written notice to Krane or by Krane, effective at the end of the current term of the Expense Limitation Agreement, upon at least 60 days’ written notice prior to the end of such current term, and subject to the consent of the Board of Trustees. In addition, the Expense Limitation Agreement will terminate if
37
Notes to Financial Statements (unaudited)
3. RELATED PARTY TRANSACTIONS – (continued)
the investment advisory agreement for the Fund is terminated with such termination effective upon the effective date of the investment advisory agreement’s termination.
Bosera Asset Management (International) Co., Ltd. (“Bosera”), an affiliate of the adviser, operating out of Hong Kong, serves as the Co-Adviser to the KraneShares Bosera MSCI China A Share ETF and is responsible for the day-to-day management of the Fund, subject to oversight by the Adviser and the Board of Trustees of the Trust. For the services Bosera provides to KraneShares Bosera MSCI China A Share ETF, the Adviser pays Bosera a fee equal to 50% of the net revenue the Adviser receives from the Fund.
The Adviser and Co-Adviser bear all of their own costs associated with providing these advisory services. As part of its agreement with the Trust, the Adviser has contractually agreed to pay all operating expenses of the Funds, including the cost of index licensing fees, transfer agency, custody, fund administration, legal, audit and other services, except interest expense, taxes, Acquired Fund Fees and Expenses, if any, brokerage commissions and other expenses connected with execution of portfolio transactions, expenses of the Independent Trustees (including any Trustees’ counsel fees), extraordinary expenses, distribution fees and any expenses paid by the Trust under the distribution plan adopted pursuant to Rule 12b-1 under the 1940 Act and the advisory fee payable to the Adviser.
Sub-Advisory Agreement
Index Management Solutions, LLC serves as the investment sub-adviser to the KraneShares CSI New China ETF and KraneShares CSI China Internet ETF (the “Sub-Adviser”). The Sub-Adviser is responsible for trading portfolio securities on behalf of the KraneShares CSI New China Plan ETF and KraneShares CSI China Internet ETF, including selecting broker-dealers to execute purchase and sale transactions as instructed by the Adviser or in connection with any rebalancing or reconstitution of the Underlying Index, subject to the supervision of the Adviser and the Board of Trustees. For the services it provides to the KraneShares CSI New China ETF and KraneShares CSI China Internet ETF, the Adviser pays the Sub-Adviser a fee, which is calculated daily and paid monthly, at an annual rate of 0.05% on each Fund’s daily average net assets up to $50 million; 0.04% on each Fund’s daily average net assets on the next $50 million; and 0.03% on each Fund’s daily average net assets in excess of $100 million.
Distribution Agreement
SEI Investments Distribution Co. (the “Distributor”), a wholly owned subsidiary of SEI Investments Company and an affiliate of the administrator, serves as the Funds’ distributor of Creation Units pursuant to a distribution agreement. The Distributor does not maintain any secondary market in Fund shares.
The Trust has adopted a Distribution and Service Plan (“Plan”) pursuant to Rule 12b-1 under the 1940 Act. In accordance with its Plan, each Fund is authorized to pay an amount up to 0.25% of its average daily net assets each year for certain distribution-related activities. For the first twelve months of operations, no fees will be charged by the Distributor under the Plan and the Plan will only be implemented with the approval of the Board of Trustees.
Administrator, Custodian and Transfer Agent
SEI Investments Global Funds Services (the “Administrator”) serves as the Funds’ Administrator pursuant to an administration agreement. Brown Brothers Harriman & Co. serves as the Funds’ Custodian and Transfer Agent pursuant to a Custodian and Transfer Agent Agreement.
38
Notes to Financial Statements (unaudited)
4. INVESTMENT TRANSACTIONS
For the period ended September 30, 2014, the purchases and sales of investments in securities excluding in-kind transactions, long-term U.S. Government and short-term securities were:
![]() | ![]() | ![]() | ||||||
Purchases | Sales and Maturities | |||||||
KraneShares Bosera MSCI China A ETF(1) | $ | 298,530 | $ | 8,801,566 | ||||
KraneShares CSI New China ETF(2) | 224,722 | 233,309 | ||||||
KraneShares CSI China Internet ETF(3) | 16,370,165 | 17,047,557 |
(1) | Commenced operations on March 4, 2014. |
(2) | Commenced operations on July 22, 2013. |
(3) | Commenced operations on July 31, 2013. |
For the period ended September 30, 2014, in-kind transactions associated with creations and redemptions were:
![]() | ![]() | ![]() | ![]() | |||||||||
Purchases | Sales and Maturities | Realized Gain/(Loss) | ||||||||||
KraneShares Bosera MSCI China A ETF(1) | $ | — | $ | — | $ | — | ||||||
KraneShares CSI New China ETF(2) | — | — | — | |||||||||
KraneShares CSI China Internet ETF(3) | 48,875,727 | 4,799,635 | 940,989 |
(1) | Commenced operations on March 4, 2014. |
(2) | Commenced operations on July 22, 2013. |
(3) | Commenced operations on July 31, 2013. |
During the period ended September 30, 2014, there were no purchases or sales of long-term U.S. Government securities for the Funds.
5. TAX INFORMATION
The amount and character of income and capital gain distributions to be paid, if any, are determined in accordance with Federal income tax regulations, which may differ from U.S. GAAP. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to undistributed net investment income (loss), accumulated net realized gain (loss) or paid-in capital, as appropriate, in the period that the differences arise.
The tax character of dividends and distributions paid during the period ended March 31, 2014 were as follows:
![]() | ![]() | ![]() | ![]() | ![]() | ||||||||||||
KraneShares Funds | Ordinary Income | Long-Term Capital Gain | Return of Capital | Totals | ||||||||||||
KraneShares Bosera MSCI China A Share ETF 2014 | $ | — | $ | — | $ | — | $ | — | ||||||||
KraneShares CSI New China ETF 2014 | — | — | — | — | ||||||||||||
KraneShares CSI China Internet ETF 2014 | 67,648 | — | — | 67,648 |
39
Notes to Financial Statements (unaudited)
5. TAX INFORMATION – (continued)
As of March 31, 2014, the components of tax basis distributable earnings (accumulated losses) were as follows:
![]() | ![]() | ![]() | ![]() | |||||||||
KraneShares Bosera MSCI China A Share ETF | KraneShares CSI New China ETF | KraneShares CSI China Internet ETF | ||||||||||
Undistributed Ordinary Income | $ | — | $ | 17,544 | $ | 596,577 | ||||||
Qualified Late Year Losses | (39,502 | ) | — | — | ||||||||
Unrealized Appreciation on Investments and Foreign Currency | (430,443 | ) | 615,138 | 2,413,661 | ||||||||
Total Distributable Earnings (Accumulated Losses) | $ | (469,945 | ) | $ | 632,682 | $ | 3,010,238 |
Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. Post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law. As of March 31, 2014 there were no capital losses.
The differences between book and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the tax deferral of losses on wash sales and investments in passive foreign investment companies. The Federal tax cost and aggregate gross unrealized appreciation and depreciation on investments held by the Funds at September 30, 2014 were as follows:
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KraneShares Funds | Federal Tax Cost | Aggregated Gross Unrealized Appreciation | Aggregated Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
KraneShares Bosera MSCI China A Share ETF | $ | 3,001,918 | $ | 432,427 | $ | (41,083 | ) | $ | 391,344 | |||||||
KraneShares CSI New China ETF | 2,544,880 | 856,065 | (127,278 | ) | 728,787 | |||||||||||
KraneShares CSI China Internet ETF | 117,882,546 | 8,161,668 | (11,701,819 | ) | (3,540,151 | ) |
6. CONCENTRATION OF RISKS
As with all exchange traded funds (“ETFs”), shareholders of Funds are subject to the risk that their investment could lose money. The Funds are subject to the principal risks noted below, any of which may adversely affect a Fund’s net asset value (“NAV”), trading price, yield, total return and ability to meet its investment objective. A more complete description of principal risks is included in the prospectus under the heading “Principal Risks”.
Geographic Concentration in China and Hong Kong
Because the Funds concentrate their investments in securities issued in China and Hong Kong, each Fund’s performance is expected to be closely tied to social, political, and economic conditions within China and Hong Kong and to be more volatile than the performance of more geographically diversified funds. These and other factors could have a negative impact on the Funds’ performance and increase the volatility of an investment in the Funds.
Industry Concentration Risk
In following its methodology, each Fund’s Underlying Index from time to time may be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly
40
Notes to Financial Statements (unaudited)
6. CONCENTRATION OF RISKS – (continued)
over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperforms other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.
Non-Correlation Risk
Each Fund’s return may not match the return of its Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to the Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the Fund’s securities holdings to reflect changes in the composition of its Underlying Index. In addition, the performance of each Fund and its Underlying Index may vary due to asset valuation differences and differences between each Fund’s portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.
Index Risk
Unlike many investment companies, the Funds do not utilize an investing strategy that seeks returns in excess of each Fund’s respective Underlying Index. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
Market Risk
The trading prices of equity securities and other instruments fluctuate in response to a variety of factors. The Funds NAV and market price may fluctuate significantly in response to such factors. As a result, an investor could lose money over short or long periods of time.
Non-Diversification Risk
The Funds are considered to be non-diversified, which means that it may invest more of their assets in the securities of a single issuer or a smaller number of issuers than if they were a diversified fund. To the extent a Fund invests a significant percentage of its assets in a limited number of issuers, the Fund is subject to the risks of investing in those few issuers, and may be more susceptible to a single adverse economic or regulatory occurrence. As a result, changes in the market value of a single security could cause greater fluctuations in the value of Fund shares than would occur in a diversified fund.
7. OTHER
At September 30, 2014, the records of the Trust reflected that 100% of each Fund’s total Shares outstanding were each held by one Authorized Participant, in the form of Creation Units. However, the individual shares comprising such Creation Units are listed and traded on the NYSE Arca, Inc. and a portion thereof have been purchased and sold by persons other than Authorized Participants. Each Authorized Participant has entered into an agreement with the Funds’ Distributor.
8. CONTRACTUAL OBLIGATIONS
The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds’ maximum exposure under these arrangements is unknown. However, the Funds have not had prior gains or losses pursuant to these contracts. Management has reviewed the Funds’ existing contracts and expects the risk of loss to be remote.
9. SUBSEQUENT EVENTS
The Funds have evaluated the need for additional disclosures and/or adjustments resulting from subsequent events. Based on this evaluation, no additional disclosures or adjustments were required to the financial statements as of the date the financial statements were issued.
41
Disclosure of Fund Expenses (unaudited)
All Exchange Traded Funds (“ETF’s”) have operating expenses. As a shareholder of an ETF, your investment is affected by these ongoing costs, which include (among others) costs for ETF management, administrative services, commissions, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns. In addition, a shareholder is responsible for brokerage fees as a result of their investment in the Fund.
Operating expenses such as these are deducted from an ETF’s gross income and directly reduce its final investment return. These expenses are expressed as a percentage of the ETF’s average net assets; this percentage is known as the ETF’s expense ratio.
The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.
The table on the next page illustrates your Fund’s costs in two ways:
Actual Fund Return. This section helps you to estimate the actual expenses that your Fund incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.
You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under “Expenses Paid During Period.”
Hypothetical 5% Return. This section helps you compare your Fund’s costs with those of other funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expenses Paid During Period” column with those that appear in the same charts in the shareholder reports for other funds.
NOTE: Because the return is set at 5% for comparison purposes — NOT your Fund’s actual return — the account values shown may not apply to your specific investment.
42
Disclosure of Fund Expenses (unaudited) (concluded)
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Beginning Account Value 4/1/2014 | Ending Account Value 9/30/2014 | Annualized Expense Ratios | Expenses Paid During Period(1) | |||||||||||||
KraneShares Bosera MSCI China A Share ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,195.70 | 1.03 | % | $ | 5.67 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,019.90 | 1.03 | 5.22 | ||||||||||||
KraneShares CSI New China ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,012.40 | 0.68 | % | $ | 3.43 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,021.66 | 0.68 | 3.45 | ||||||||||||
KraneShares CSI China Internet ETF | ||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 912.00 | 0.68 | % | $ | 3.36 | ||||||||
Hypothetical 5% Return | 1,000.00 | 1,021.66 | 0.68 | 3.45 |
(1) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied 183/365 (to reflect the one-half year period). |
43
Supplemental Information (unaudited)
Net asset value, or “NAV”, is the price per Share at which the Funds issue and redeem Shares. It is calculated in accordance with the standard formula for valuing mutual fund shares. The “Market Price” of the Funds generally is determined using the midpoint between the highest bid and the lowest offer on the stock exchange on which the Shares of the Funds are listed for trading, as of the time that the Funds’ NAV is calculated. The Funds’ Market Price may be at, above or below their NAV. The NAV of the Funds will fluctuate with changes in the market value of their holdings. The Market Price of the Funds will fluctuate in accordance with changes in their NAV, as well as market supply and demand.
Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of the Funds on a given day, generally at the time NAV is calculated. A premium is the amount that the Funds are trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that the Funds are trading below the reported NAV, expressed as a percentage of the NAV.
Further information regarding premiums and discounts is available on the Funds’ website at KraneShares.com
44
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Notes
![](https://capedge.com/proxy/N-CSRS/0001144204-14-072538/line.gif)
KraneShares Trust:
1350 Avenue of the Americas, 2nd Floor
New York, New York 10019
1-855-857-2638
http://kraneshares.com/
Investment Adviser:
Krane Funds Advisors, LLC
1350 Avenue of the Americas, 2nd Floor
New York, New York 10019
Distributor:
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, PA 19456
Administrator:
SEI Investments Global Funds Services
One Freedom Valley Drive
Oaks, PA 19456
This information must be preceded or accompanied by a current prospectus for the Funds described.
KRS-SA-001-0200
Item 2. Code of Ethics.
Not applicable for semi-annual report.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual report.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual report.
Item 5. Audit Committee of Listed Registrants.
Not applicable to open-end management investment companies.
Item 6. Schedule of Investments.
Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable. Effective for closed-end management investment companies for fiscal years ending on or after December 31, 2005.
Item 9. Purchases of Equity Securities by Closed-End Management Company and Affiliated Purchasers.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees during the period covered by this report.
Item 11. Controls and Procedures.
(a) The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report, are effective based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There has been no change in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Items 12. Exhibits.
(a)(1) Not applicable for semi-annual report.
(a)(2) A separate certification for the principal executive officer and the principal financial officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an Exhibit.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | KraneShares Trust |
By (Signature and Title) | /s/Jonathan Krane |
Jonathan Krane, Trustee and Principal | |
Executive Officer | |
Date: December 5, 2014 | |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. | |
By (Signature and Title) | /s/ Jonathan Krane |
Jonathan Krane, Trustee and Principal | |
Executive Officer | |
Date: December 5, 2014 | |
By (Signature and Title) | /s/ Jonathan Krane |
Jonathan Krane, Principal Financial Officer | |
Date: December 5, 2014 |