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Semi-Annual Report KraneShares CICC China Leaders 100 Index ETF KraneShares CSI China Internet ETF KraneShares Bosera MSCI China A 50 Connect Index ETF KraneShares Bloomberg China Bond Inclusion Index ETF KraneShares MSCI All China Index ETF KraneShares MSCI One Belt One Road Index ETF KraneShares Emerging Markets Consumer Technology Index ETF KraneShares MSCI China Clean Technology Index ETF KraneShares Electric Vehicles and Future Mobility Index ETF KraneShares MSCI All China Health Care Index ETF KraneShares Asia Pacific High Income Bond ETF KraneShares Emerging Markets Healthcare Index ETF KraneShares MSCI Emerging Markets ex China Index ETF KraneShares MSCI China ESG Leaders Index ETF KraneShares CICC China 5G & Semiconductor Index ETF KraneShares CICC China Consumer Leaders Index ETF KraneShares SSE STAR Market 50 Index ETF KraneShares Hang Seng TECH Index ETF KraneShares China Innovation ETF KraneShares S&P Pan Asia Dividend Aristocrats Index ETF
September 30, 2022
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Table of Contents
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 as an exhibit to their reports on Form N-PORT. The Funds’ Form N-PORT reports are available on the Commission’s website at http://www.sec.gov.
A description of the policies and procedures that KraneShares Trust uses 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 year ended June 30, are available (i) without charge, upon request, by calling 855-857-2638; and (ii) on the Commission’s website at http://www.sec.gov.
Fund shares may only be purchased or redeemed from a Fund in Creation Unit aggregations. Investors who cannot transact in Creation Units of a Fund’s shares must buy or sell Fund shares in the secondary market at their market price, which may be at a premium or discount to a Fund’s net asset value, with the assistance of a broker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying Fund shares and receive less than net asset value when selling Fund shares.
Schedule of Investments (Unaudited) September 30, 2022
KraneShares CICC China Leaders 100 Index ETF
| Shares | Value | |||||||
| COMMON STOCK — 100.0%‡ | ||||||||
| CHINA — 100.0% | ||||||||
| Communication Services — 1.6% | ||||||||
| 37 Interactive Entertainment Network Technology Group, Cl A | 16,600 | $ | 40,562 | |||||
| China South Publishing & Media Group, Cl A | 8,900 | 12,284 | ||||||
| Chinese Universe Publishing and Media Group, Cl A | 8,500 | 10,003 | ||||||
| Perfect World, Cl A | 17,600 | 30,662 | ||||||
| 93,511 | ||||||||
| Consumer Discretionary — 12.7% | ||||||||
| Chow Tai Seng Jewellery, Cl A* | 6,100 | 9,925 | ||||||
| Gree Electric Appliances of Zhuhai, Cl A | 60,000 | 272,936 | ||||||
| Guangzhou Automobile Group, Cl A | 28,000 | 47,641 | ||||||
| Hisense Home Appliances Group, Cl A | 6,100 | 9,592 | ||||||
| Huayu Automotive Systems, Cl A | 20,200 | 46,808 | ||||||
| KingClean Electric, Cl A | 1,700 | 7,876 | ||||||
| Midea Group, Cl A | 38,300 | 264,909 | ||||||
| Rainbow Digital Commercial, Cl A | 6,000 | 5,311 | ||||||
| Wanxiang Qianchao, Cl A | 16,600 | 11,456 | ||||||
| Wuchan Zhongda Group, Cl A | 38,900 | 22,481 | ||||||
| Zhejiang Wanfeng Auto Wheel, Cl A* | 20,300 | 15,120 | ||||||
| Zhejiang Weixing Industrial Development, Cl A | 9,800 | 16,028 | ||||||
| 730,083 | ||||||||
| Consumer Staples — 10.5% | ||||||||
| Anhui Kouzi Distillery, Cl A | 4,500 | 29,661 | ||||||
| Anhui Yingjia Distillery, Cl A | 3,000 | 23,637 | ||||||
| Bright Dairy & Food, Cl A | 8,600 | 12,630 | ||||||
| Heilongjiang Agriculture, Cl A | 9,300 | 17,363 | ||||||
| Henan Shuanghui Investment & Development, Cl A | 22,600 | 77,540 | ||||||
The accompanying notes are an integral part of the financial statements.
1
Schedule of Investments (Unaudited) September 30, 2022
KraneShares CICC China Leaders 100 Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Consumer Staples (continued) | ||||||||
| Inner Mongolia Yili Industrial Group, Cl A | 58,600 | $ | 271,088 | |||||
| Jiangsu Yanghe Brewery JSC, Cl A | 7,600 | 168,595 | ||||||
| 600,514 | ||||||||
| Energy — 9.5% | ||||||||
| China Shenhua Energy, Cl A | 42,100 | 186,845 | ||||||
| Inner Mongolia Dian Tou Energy, Cl A | 9,600 | 17,600 | ||||||
| Pingdingshan Tianan Coal Mining, Cl A | 15,000 | 28,699 | ||||||
| Shaanxi Coal Industry, Cl A | 49,500 | 158,099 | ||||||
| Shan Xi Hua Yang Group New Energy, Cl A | 15,000 | 38,441 | ||||||
| Shanxi Lu’an Environmental Energy Development, Cl A | 15,000 | 35,516 | ||||||
| Yankuang Energy Group, Cl A | 11,500 | 80,929 | ||||||
| 546,129 | ||||||||
| Financials — 28.1% | ||||||||
| Agricultural Bank of China, Cl A | 398,100 | 159,706 | ||||||
| Bank of China, Cl A | 267,500 | 115,943 | ||||||
| Bank of Communications, Cl A | 348,800 | 226,038 | ||||||
| China Construction Bank, Cl A | 83,800 | 64,885 | ||||||
| China Merchants Bank, Cl A | 59,800 | 282,259 | ||||||
| Industrial & Commercial Bank of China, Cl A | 444,900 | 271,465 | ||||||
| Industrial Bank, Cl A | 113,600 | 265,311 | ||||||
| Postal Savings Bank of China, Cl A | 138,100 | 86,395 | ||||||
| Shanghai Pudong Development Bank, Cl A | 149,000 | 147,137 | ||||||
| 1,619,139 | ||||||||
| Health Care — 2.8% | ||||||||
| Anhui Anke Biotechnology Group, Cl A | 14,300 | 18,073 | ||||||
| China Animal Healthcare*(A) | 4,000 | — | ||||||
| Hubei Jumpcan Pharmaceutical, Cl A | 4,500 | 14,461 | ||||||
| Shandong Buchang Pharmaceuticals, Cl A | 7,800 | 19,179 | ||||||
| Tibet Rhodiola Pharmaceutical Holding, Cl A | 1,700 | 7,893 | ||||||
| Tonghua Dongbao Pharmaceutical, Cl A | 20,600 | 24,937 | ||||||
| Yunnan Baiyao Group, Cl A | 9,000 | 66,088 | ||||||
| Zhejiang Orient Gene Biotech, Cl A | 1,172 | 12,403 | ||||||
| 163,034 | ||||||||
| Industrials — 9.6% | ||||||||
| China Meheco, Cl A | 9,940 | 16,787 | ||||||
| China State Construction Engineering, Cl A | 266,200 | 192,299 | ||||||
| Jiangsu Guotai International Group, Cl A | 12,300 | 14,337 | ||||||
| Jingjin Equipment, Cl A | 3,800 | 14,189 | ||||||
| Metallurgical Corp of China, Cl A | 91,200 | 38,250 | ||||||
| Shanghai International Port Group, Cl A | 43,600 | 34,003 | ||||||
| Sinoma International Engineering, Cl A | 14,600 | 16,813 | ||||||
The accompanying notes are an integral part of the financial statements.
2
Schedule of Investments (Unaudited) September 30, 2022
KraneShares CICC China Leaders 100 Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Industrials (continued) | ||||||||
| Sinotrans, Cl A | 19,700 | $ | 9,810 | |||||
| Suzhou SLAC Precision Equipment, Cl A | 3,700 | 10,686 | ||||||
| Tian Di Science & Technology, Cl A | 22,200 | 14,854 | ||||||
| Xiamen C & D, Cl A | 21,500 | 41,769 | ||||||
| Xiamen ITG Group, Cl A | 18,500 | 16,556 | ||||||
| Xiamen Xiangyu, Cl A | 14,700 | 17,197 | ||||||
| Xinjiang Goldwind Science & Technology, Cl A | 34,400 | 54,718 | ||||||
| Zhejiang Chint Electrics, Cl A | 13,500 | 50,712 | ||||||
| Zhejiang Communications Technology | 13,900 | 10,568 | ||||||
| 553,548 | ||||||||
| Information Technology — 2.0% | ||||||||
| Avary Holding Shenzhen, Cl A | 9,200 | 33,436 | ||||||
| China Railway Signal & Communication, Cl A | 32,244 | 18,770 | ||||||
| Digital China Group, Cl A | 5,700 | 12,825 | ||||||
| Hanergy Thin Film Power Group*(A) | 65,064 | — | ||||||
| Lakala Payment, Cl A* | 6,000 | 11,513 | ||||||
| Universal Scientific Industrial Shanghai, Cl A | 9,200 | 19,460 | ||||||
| Wuxi Taiji Industry, Cl A | 19,800 | 15,914 | ||||||
| 111,918 | ||||||||
| Materials — 8.5% | ||||||||
| Anhui Jinhe Industrial, Cl A | 4,300 | 22,848 | ||||||
| Bluestar Adisseo, Cl A | 5,400 | 7,468 | ||||||
| China Jushi, Cl A | 30,428 | 56,254 | ||||||
| China Lumena New Materials*(A) | 718 | — | ||||||
| Huaibei Mining Holdings, Cl A | 13,500 | 31,908 | ||||||
| LB Group, Cl A | 20,200 | 44,627 | ||||||
| Liao Ning Oxiranchem, Cl A | 5,600 | 7,132 | ||||||
| Luxi Chemical Group, Cl A | 14,300 | 25,996 | ||||||
| Shandong Dongyue Organosilicon Material, Cl A | 5,300 | 9,746 | ||||||
| Shenzhen Jinjia Group, Cl A | 13,700 | 16,296 | ||||||
| Shenzhen Zhongjin Lingnan Nonfemet, Cl A | 35,199 | 20,342 | ||||||
| Tianhe Chemicals Group*(A) | 40,000 | — | ||||||
| Valiant | 7,900 | 16,156 | ||||||
| Xinyu Iron & Steel, Cl A | 25,300 | 13,663 | ||||||
| Zhejiang Jiahua Energy Chemical Industry, Cl A | 12,400 | 15,880 | ||||||
| Zijin Mining Group, Cl A | 182,900 | 201,137 | ||||||
| 489,453 | ||||||||
| Real Estate — 6.3% | ||||||||
| China Vanke, Cl A | 86,400 | 216,087 | ||||||
| Financial Street Holdings, Cl A | 14,900 | 10,617 | ||||||
| Gemdale, Cl A | 35,000 | 56,409 | ||||||
The accompanying notes are an integral part of the financial statements.
3
Schedule of Investments (Unaudited) September 30, 2022
KraneShares CICC China Leaders 100 Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Real Estate (continued) | ||||||||
| Seazen Holdings, Cl A* | 11,600 | $ | 28,442 | |||||
| Zhejiang China Commodities City Group, Cl A | 34,200 | 21,396 | ||||||
| Zhuhai Huafa Properties, Cl A | 22,000 | 30,396 | ||||||
| 363,347 | ||||||||
| Utilities — 8.4% | ||||||||
| CGN Power, Cl A | 147,100 | 54,473 | ||||||
| China National Nuclear Power, Cl A | 119,600 | 98,141 | ||||||
| China Yangtze Power, Cl A | 98,500 | 314,187 | ||||||
| Fujian Funeng, Cl A | 10,800 | 16,194 | ||||||
| 482,995 | ||||||||
| TOTAL CHINA | 5,753,671 | |||||||
| TOTAL COMMON STOCK (Cost $6,751,285) |
5,753,671 | |||||||
| TOTAL INVESTMENTS — 100.0% (Cost $6,751,285) |
5,753,671 | |||||||
| OTHER ASSETS LESS LIABILITIES — 0.0% | 2,338 | |||||||
| NET ASSETS — 100% | $ | 5,756,009 | ||||||
| ‡ | Industries are utilized for compliance purposes, whereas sectors are utilized for reporting. |
| * | Non-income producing security. |
| (A) | Level 3 security in accordance with fair value hierarchy. |
Cl — Class
JSC — Joint-Stock Company
The accompanying notes are an integral part of the financial statements.
4
Schedule of Investments (Unaudited) September 30, 2022
KraneShares CICC China Leaders 100 Index ETF (concluded)
The following summarizes the market value of the Fund’s investments used as of September 30, 2022, based on the inputs used to value them:
| Investments in Securities | Level 1 | Level 2 | Level 3^ | Total | ||||||||||||
| Common Stock | ||||||||||||||||
| China | ||||||||||||||||
| Communication Services | $ | 93,511 | $ | — | $ | — | $ | 93,511 | ||||||||
| Consumer Discretionary | 682,442 | 47,641 | — | 730,083 | ||||||||||||
| Consumer Staples | 600,514 | — | — | 600,514 | ||||||||||||
| Energy | 546,129 | — | — | 546,129 | ||||||||||||
| Financials | 1,619,139 | — | — | 1,619,139 | ||||||||||||
| Health Care | 163,034 | — | — | ‡‡ | 163,034 | |||||||||||
| Industrials | 553,548 | — | — | 553,548 | ||||||||||||
| Information Technology | 111,918 | — | — | ‡‡ | 111,918 | |||||||||||
| Materials | 473,573 | 15,880 | — | ‡‡ | 489,453 | |||||||||||
| Real Estate | 363,347 | — | — | 363,347 | ||||||||||||
| Utilities | 482,995 | — | — | 482,995 | ||||||||||||
| Total Common Stock | 5,690,150 | 63,521 | — | 5,753,671 | ||||||||||||
| Total Investments in Securities | $ | 5,690,150 | $ | 63,521 | $ | — | $ | 5,753,671 | ||||||||
| ^ | A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets. |
| ‡‡ | Security or securities with a market value of $0. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
5
Schedule of Investments (Unaudited) September 30, 2022
KraneShares CSI China Internet ETF
| Shares | Value | |||||||
| COMMON STOCK — 100.0%‡ | ||||||||
| CHINA — 99.6% | ||||||||
| Communication Services — 36.3% | ||||||||
| Autohome ADR | 2,118,491 | $ | 60,927,801 | |||||
| Baidu, Cl A* | 14,148,934 | 205,657,826 | ||||||
| Bilibili, Cl Z* | 8,976,164 | 136,759,604 | ||||||
| China Literature* | 16,911,000 | 47,933,063 | ||||||
| Hello Group ADR* | 4,785,141 | 22,107,351 | ||||||
| HUYA ADR* | 2,809,872 | 6,237,916 | ||||||
| iQIYI ADR*(A) | 11,728,126 | 31,783,222 | ||||||
| JOYY ADR | 1,573,106 | 40,900,756 | ||||||
| Kanzhun ADR* | 9,993,093 | 168,683,410 | ||||||
| Kingsoft | 36,195,800 | 96,369,663 | ||||||
| Kuaishou Technology, Cl B* | 23,575,000 | 153,014,210 | ||||||
| NetEase | 19,060,205 | 287,727,779 | ||||||
| Tencent Holdings | 13,749,775 | 466,622,512 | ||||||
| Tencent Music Entertainment Group ADR* | 19,425,571 | 78,867,818 | ||||||
| Weibo ADR* | 2,388,027 | 40,835,262 | ||||||
| XD*(A) | 9,578,000 | 19,522,287 | ||||||
| Zhihu ADR*(A) | 16,964,700 | 17,982,582 | ||||||
| 1,881,933,062 | ||||||||
| Consumer Discretionary — 47.8% | ||||||||
| Alibaba Group Holding* | 47,910,164 | 475,750,937 | ||||||
| Alibaba Health Information Technology* | 174,398,000 | 79,979,720 | ||||||
| Dada Nexus ADR* | 2,757,956 | 13,045,132 | ||||||
| JD Health International* | 40,135,900 | 230,592,630 | ||||||
| JD.com, Cl A* | 15,335,290 | 387,978,018 | ||||||
| Meituan, Cl B* | 20,247,400 | 427,135,306 | ||||||
The accompanying notes are an integral part of the financial statements.
6
Schedule of Investments (Unaudited) September 30, 2022
KraneShares CSI China Internet ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Consumer Discretionary (continued) | ||||||||
| Pinduoduo ADR* | 4,671,697 | $ | 292,354,798 | |||||
| Ping An Healthcare and Technology*(A) | 18,359,100 | 34,613,776 | ||||||
| TAL Education Group ADR* | 12,976,621 | 64,104,508 | ||||||
| Tongcheng Travel Holdings* | 42,829,800 | 84,023,863 | ||||||
| Trip.com Group* | 10,239,200 | 274,961,893 | ||||||
| Vipshop Holdings ADR* | 13,263,367 | 111,544,916 | ||||||
| 2,476,085,497 | ||||||||
| Financials — 3.1% | ||||||||
| 360 DigiTech ADR | 2,958,142 | 37,923,381 | ||||||
| Lufax Holding ADR | 26,290,073 | 66,776,785 | ||||||
| ZhongAn Online P&C Insurance, Cl H*(A) | 23,614,500 | 52,945,286 | ||||||
| 157,645,452 | ||||||||
| Health Care — 0.2% | ||||||||
| Yidu Tech* | 18,958,600 | 11,640,970 | ||||||
| Industrials — 3.9% | ||||||||
| Full Truck Alliance ADR*(A) | 31,144,385 | 203,995,722 | ||||||
| Information Technology — 2.5% | ||||||||
| Agora ADR* | 2,664,693 | 9,672,836 | ||||||
| Chindata Group Holdings ADR* | 5,167,068 | 41,749,909 | ||||||
| Kingsoft Cloud Holdings ADR*(A) | 4,227,072 | 8,411,873 | ||||||
| Ming Yuan Cloud Group Holdings(A) | 38,095,000 | 22,566,116 | ||||||
| Vnet Group ADR* | 3,838,158 | 21,109,869 | ||||||
| Weimob*(A) | 68,315,000 | 24,193,391 | ||||||
| 127,703,994 | ||||||||
| Real Estate — 5.8% | ||||||||
| KE Holdings ADR* | 17,258,512 | 302,369,130 | ||||||
| TOTAL CHINA | 5,161,373,827 | |||||||
| Hong Kong — 0.4% | ||||||||
| Communication Services — 0.4% | ||||||||
| Alibaba Pictures Group* | 416,384,000 | 21,482,506 | ||||||
| TOTAL HONG KONG | 21,482,506 | |||||||
| TOTAL
COMMON STOCK (Cost $8,258,063,205) |
5,182,856,333 | |||||||
The accompanying notes are an integral part of the financial statements.
7
Schedule of Investments (Unaudited) September 30, 2022
KraneShares CSI China Internet ETF (concluded)
| Shares | Value | |||||||
| SHORT-TERM INVESTMENT — 1.6% | ||||||||
| Invesco Government & Agency Portfolio, Cl Institutional, 1.380%(B)(C) | 84,950,213 | $ | 84,950,213 | |||||
| TOTAL SHORT-TERM INVESTMENT (Cost $84,950,213) |
84,950,213 | |||||||
| TOTAL INVESTMENTS — 101.6% (Cost $8,343,013,418) |
5,267,806,546 | |||||||
| OTHER ASSETS LESS LIABILITIES — (1.6)% | (84,420,854 | ) | ||||||
| NET ASSETS — 100% | $ | 5,183,385,692 | ||||||
| ‡ | Industries are utilized for compliance purposes, whereas sectors are utilized for reporting. |
| * | Non-income producing security. |
| (A) | This security or a partial position of this security is on loan at September 30, 2022. The total market value of securities on loan at September 30, 2022 was $79,478,249. |
| (B) | The rate shown is the 7-day effective yield as of September 30, 2022. |
| (C) | This security was purchased with cash collateral held from securities on loan. The total value of such security as of September 30, 2022 was $84,950,213. |
ADR — American Depositary Receipt
Cl — Class
As of September 30, 2022, all of the Fund’s investments were considered Level 1 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.
The accompanying notes are an integral part of the financial statements.
8
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Bosera MSCI China A 50 Connect Index ETF
| Shares | Value | |||||||
| COMMON STOCK — 99.6%‡ | ||||||||
| CHINA — 99.6% | ||||||||
| Communication Services — 1.1% | ||||||||
| China United Network Communications, Cl A | 7,903,500 | $ | 3,713,869 | |||||
| Focus Media Information Technology, Cl A | 3,683,702 | 2,852,238 | ||||||
| 6,566,107 | ||||||||
| Consumer Discretionary — 6.4% | ||||||||
| BYD, Cl A | 573,689 | 20,279,467 | ||||||
| China Tourism Group Duty Free, Cl A | 617,632 | 17,175,336 | ||||||
| 37,454,803 | ||||||||
| Consumer Staples — 17.4% | ||||||||
| Foshan Haitian Flavouring & Food, Cl A | 560,250 | 6,508,474 | ||||||
| Inner Mongolia Yili Industrial Group, Cl A | 928,412 | 4,294,906 | ||||||
| Jiangsu Yanghe Brewery JSC, Cl A | 218,718 | 4,851,946 | ||||||
| Kweichow Moutai, Cl A | 182,389 | 47,905,206 | ||||||
| Luzhou Laojiao, Cl A | 213,746 | 6,915,642 | ||||||
| Muyuan Foods, Cl A | 772,245 | 5,905,725 | ||||||
| Shanxi Xinghuacun Fen Wine Factory, Cl A | 177,216 | 7,529,223 | ||||||
| Tongwei, Cl A | 653,193 | 4,302,609 | ||||||
| Wuliangye Yibin, Cl A | 563,179 | 13,368,604 | ||||||
| 101,582,335 | ||||||||
| Energy — 3.6% | ||||||||
| China Shenhua Energy, Cl A | 2,303,747 | 10,224,298 | ||||||
| Shaanxi Coal Industry, Cl A | 3,395,116 | 10,843,760 | ||||||
| 21,068,058 | ||||||||
The accompanying notes are an integral part of the financial statements.
9
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Bosera MSCI China A 50 Connect Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Financials — 17.6% | ||||||||
| Agricultural Bank of China, Cl A | 18,145,207 | $ | 7,279,310 | |||||
| Bank of Communications, Cl A | 8,366,199 | 5,421,661 | ||||||
| Bank of Ningbo, Cl A | 1,408,618 | 6,233,829 | ||||||
| China Merchants Bank, Cl A | 4,397,058 | 20,754,367 | ||||||
| China Pacific Insurance Group, Cl A | 1,459,214 | 4,161,201 | ||||||
| CITIC Securities, Cl A | 2,610,422 | 6,378,537 | ||||||
| East Money Information, Cl A | 2,816,596 | 6,961,337 | ||||||
| Industrial & Commercial Bank of China, Cl A | 13,408,526 | 8,181,493 | ||||||
| Industrial Bank, Cl A | 4,428,122 | 10,341,798 | ||||||
| Ping An Bank, Cl A | 4,136,371 | 6,869,631 | ||||||
| Ping An Insurance Group of China, Cl A | 2,315,298 | 13,503,727 | ||||||
| Shanghai Pudong Development Bank, Cl A | 6,256,446 | 6,178,209 | ||||||
| 102,265,100 | ||||||||
| Health Care — 8.8% | ||||||||
| Aier Eye Hospital Group, Cl A | 2,021,967 | 8,131,374 | ||||||
| Chongqing Zhifei Biological Products, Cl A | 460,870 | 5,587,341 | ||||||
| Jiangsu Hengrui Medicine, Cl A | 1,836,439 | 9,041,612 | ||||||
| Shenzhen Mindray Bio-Medical Electronics, Cl A | 350,194 | 14,687,306 | ||||||
| WuXi AppTec, Cl A | 738,082 | 7,422,077 | ||||||
| Zhangzhou Pientzehuang Pharmaceutical, Cl A | 173,950 | 6,509,873 | ||||||
| 51,379,583 | ||||||||
| Industrials — 15.1% | ||||||||
| China State Construction Engineering, Cl A | 13,024,558 | 9,408,762 | ||||||
| Contemporary Amperex Technology, Cl A | 726,153 | 40,833,406 | ||||||
| COSCO SHIPPING Holdings, Cl A | 3,931,460 | 6,077,119 | ||||||
| Eve Energy, Cl A | 589,770 | 6,998,666 | ||||||
| NARI Technology, Cl A | 2,079,236 | 7,253,403 | ||||||
| SF Holding, Cl A | 1,520,259 | 10,069,451 | ||||||
| Sungrow Power Supply, Cl A | 461,538 | 7,161,490 | ||||||
| 87,802,297 | ||||||||
| Information Technology — 12.0% | ||||||||
| BOE Technology Group, Cl A | 26,879,345 | 12,329,024 | ||||||
| LONGi Green Energy Technology, Cl A | 5,433,144 | 36,512,340 | ||||||
| Luxshare Precision Industry, Cl A | 5,076,841 | 20,936,454 | ||||||
| 69,777,818 | ||||||||
| Materials — 12.2% | ||||||||
| Wanhua Chemical Group, Cl A | 2,326,277 | 30,052,687 | ||||||
| Yunnan Energy New Material, Cl A | 828,343 | 20,231,175 | ||||||
| Zijin Mining Group, Cl A | 19,111,392 | 21,016,995 | ||||||
| 71,300,857 | ||||||||
The accompanying notes are an integral part of the financial statements.
10
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Bosera MSCI China A 50 Connect Index ETF (concluded)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Real Estate — 2.0% | ||||||||
| China Vanke, Cl A | 2,106,800 | $ | 5,269,105 | |||||
| Poly Developments and Holdings Group, Cl A | 2,593,477 | 6,548,128 | ||||||
| 11,817,233 | ||||||||
| Utilities — 3.4% | ||||||||
| China Three Gorges Renewables Group, Cl A | 5,848,900 | 4,618,967 | ||||||
| China Yangtze Power, Cl A | 4,659,994 | 14,864,081 | ||||||
| 19,483,048 | ||||||||
| TOTAL CHINA | 580,497,239 | |||||||
| TOTAL COMMON STOCK (Cost $752,053,254) |
580,497,239 | |||||||
| RIGHT — 0.0% | ||||||||
| CHINA — 0.0% | ||||||||
| Health Care — 0.0% | ||||||||
| Kangmei Pharma‡‡(A) | 66,139 | — | ||||||
| TOTAL CHINA | — | |||||||
| TOTAL RIGHT (Cost $—) |
— | |||||||
| TOTAL INVESTMENTS — 99.6% (Cost $752,053,254) |
580,497,239 | |||||||
| OTHER ASSETS LESS LIABILITIES — 0.4% | 2,173,920 | |||||||
| NET ASSETS — 100% | $ | 582,671,159 | ||||||
| ‡ | Industries are utilized for compliance purposes, whereas sectors are utilized for reporting. |
| ‡‡ | Expiration date not available. |
| (A) | Level 3 security in accordance with fair value hierarchy. |
Cl — Class
JSC — Joint-Stock Company
The following summarizes the market value of the Fund’s investments used as of September 30, 2022, based on the inputs used to value them:
| Investments in Securities | Level 1 | Level 2 | Level 3^ | Total | ||||||||||||
| Common Stock | ||||||||||||||||
| China | $ | 580,497,239 | $ | — | $ | — | $ | 580,497,239 | ||||||||
| Total Common Stock | 580,497,239 | — | — | 580,497,239 | ||||||||||||
| Right | — | — | — | ‡‡ | — | |||||||||||
| Total Investments in Securities | $ | 580,497,239 | $ | — | $ | — | $ | 580,497,239 | ||||||||
| ^ | A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets. |
| ‡‡ | Security or securities with a market value of $0. |
The accompanying notes are an integral part of the financial statements.
11
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Bloomberg China Bond Inclusion Index ETF
| Face Amount(A) | Value | |||||||
| GLOBAL BONDS — 74.1% | ||||||||
| CHINA — 74.1% | ||||||||
| Agricultural Development Bank of China | ||||||||
| 3.350%, 03/24/2026 | 930,000 | $ | 134,036 | |||||
| 3.060%, 08/05/2023 | 3,500,000 | 495,360 | ||||||
| China Development Bank | ||||||||
| 4.040%, 04/10/2027 | 1,650,000 | 244,099 | ||||||
| 4.040%, 07/06/2028 | 1,650,000 | 246,167 | ||||||
| 3.430%, 01/14/2027 | 3,450,000 | 498,342 | ||||||
| 3.300%, 03/03/2026 | 2,360,000 | 339,530 | ||||||
| 3.090%, 06/18/2030 | 820,000 | 115,853 | ||||||
| China Government Bond | ||||||||
| 4.080%, 10/22/2048 | 1,190,000 | 193,014 | ||||||
| 4.050%, 07/24/2047 | 930,000 | 148,959 | ||||||
| 3.530%, 10/18/2051 | 2,700,000 | 401,867 | ||||||
| 3.390%, 03/16/2050 | 1,560,000 | 224,723 | ||||||
| 3.290%, 05/23/2029 | 1,600,000 | 233,375 | ||||||
| 3.020%, 10/22/2025 | 2,500,000 | 357,686 | ||||||
| 2.840%, 04/08/2024 | 2,600,000 | 368,803 | ||||||
| 2.800%, 03/24/2029 | 4,000,000 | 563,258 | ||||||
| 2.760%, 05/15/2032 | 4,100,000 | 572,209 | ||||||
| 2.750%, 06/15/2029 | 4,000,000 | 562,551 | ||||||
| 2.750%, 02/17/2032 | 4,500,000 | 626,343 | ||||||
| 2.680%, 05/21/2030 | 1,800,000 | 251,095 | ||||||
| 2.480%, 04/15/2027 | 4,500,000 | 629,034 | ||||||
| 2.470%, 09/02/2024 | 3,800,000 | 536,450 | ||||||
| 2.370%, 01/20/2027 | 4,500,000 | 626,813 | ||||||
| 2.260%, 02/24/2025 | 3,000,000 | 420,641 | ||||||
| 2.240%, 05/25/2025 | 4,300,000 | 601,601 | ||||||
| 1.990%, 04/09/2025 | 1,710,000 | 237,989 | ||||||
The accompanying notes are an integral part of the financial statements.
12
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Bloomberg China Bond Inclusion Index ETF (concluded)
| Face Amount(A) | Value | |||||||
| GLOBAL BONDS (continued) | ||||||||
| CHINA (continued) | ||||||||
| Export-Import Bank of China | ||||||||
| 3.860%, 05/20/2029 | 1,030,000 | $ | 152,627 | |||||
| 3.230%, 03/23/2030 | 1,160,000 | 165,480 | ||||||
| 3.180%, 03/11/2032 | 1,000,000 | 141,756 | ||||||
| 2.930%, 03/02/2025 | 1,240,000 | 176,184 | ||||||
| 10,265,845 | ||||||||
| TOTAL
GLOBAL BONDS (Cost $11,087,359) |
10,265,845 | |||||||
| CORPORATE OBLIGATIONS — 12.7% | ||||||||
| CHINA — 9.7% | ||||||||
| Basic Materials — 4.1% | ||||||||
| China Baowu Steel Group, MTN | ||||||||
| 2.370%, 05/22/2023 | 4,000,000 | 561,868 | ||||||
| Utilities — 5.6% | ||||||||
| China Southern Power Grid, MTN | ||||||||
| 3.300%, 01/17/2023 | 1,500,000 | 211,239 | ||||||
| State Power Investment, MTN | ||||||||
| 3.550%, 10/22/2022 | 4,000,000 | 561,610 | ||||||
| 772,849 | ||||||||
| TOTAL CHINA | 1,334,717 | |||||||
| SUPRANATIONAL — 3.0% | ||||||||
| Government — 3.0% | ||||||||
| New Development Bank | ||||||||
| 2.450%, 01/27/2025 | 3,000,000 | 419,308 | ||||||
| TOTAL
CORPORATE OBLIGATIONS (Cost $1,932,499) |
1,754,025 | |||||||
| TOTAL
INVESTMENTS — 86.8% (Cost $13,019,858) |
12,019,870 | |||||||
| OTHER ASSETS LESS LIABILITIES — 13.2% | 1,831,289 | |||||||
| NET ASSETS — 100% | $ | 13,851,159 | ||||||
| (A) | In CNY unless otherwise indicated. |
MTN — Medium Term Note
As of September 30, 2022, all of the Fund’s investments were considered Level 2 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.
The accompanying notes are an integral part of the financial statements.
13
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI All China Index ETF
| Shares | Value | |||||||
| COMMON STOCK — 99.9%‡ | ||||||||
| CHINA — 99.4% | ||||||||
| Communication Services — 9.9% | ||||||||
| Autohome ADR | 343 | $ | 9,865 | |||||
| Baidu, Cl A* | 4,450 | 64,682 | ||||||
| Bilibili, Cl Z* | 840 | 12,798 | ||||||
| Focus Media Information Technology, Cl A | 8,800 | 6,814 | ||||||
| iQIYI ADR* | 1,764 | 4,780 | ||||||
| JOYY ADR | 132 | 3,432 | ||||||
| Kingsoft | 9,600 | 25,559 | ||||||
| Oriental Pearl Group, Cl A | 14,440 | 12,396 | ||||||
| Tencent Holdings | 10,358 | 351,517 | ||||||
| Tencent Music Entertainment Group ADR* | 2,428 | 9,858 | ||||||
| Weibo ADR* | 120 | 2,052 | ||||||
| 503,753 | ||||||||
| Consumer Discretionary — 23.7% | ||||||||
| Alibaba Group Holding* | 27,824 | 276,294 | ||||||
| Alibaba Health Information Technology* | 12,000 | 5,503 | ||||||
| ANTA Sports Products | 2,800 | 29,677 | ||||||
| Brilliance China Automotive Holdings*(A) | 28,000 | 15,118 | ||||||
| BYD, Cl A | 1,400 | 49,489 | ||||||
| BYD, Cl H | 2,000 | 49,529 | ||||||
| China Grand Automotive Services Group, Cl A* | 5,100 | 1,538 | ||||||
| China Tourism Group Duty Free, Cl A | 1,500 | 41,713 | ||||||
| Chongqing Changan Automobile, Cl A | 18,638 | 32,836 | ||||||
| Dongfeng Motor Group, Cl H | 10,000 | 5,350 | ||||||
| Fuyao Glass Industry Group, Cl A | 5,500 | 27,627 | ||||||
| Geely Automobile Holdings | 14,000 | 19,297 | ||||||
The accompanying notes are an integral part of the financial statements.
14
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI All China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Consumer Discretionary (continued) | ||||||||
| Great Wall Motor, Cl H | 11,500 | $ | 13,214 | |||||
| Guangzhou Automobile Group, Cl H | 12,000 | 8,561 | ||||||
| H World Group ADR* | 520 | 17,441 | ||||||
| Haier Smart Home, Cl A | 5,600 | 19,457 | ||||||
| Haier Smart Home, Cl H | 7,600 | 23,284 | ||||||
| Huayu Automotive Systems, Cl A | 3,000 | 6,952 | ||||||
| JD.com, Cl A* | 3,672 | 92,895 | ||||||
| Li Auto ADR* | 2,137 | 49,172 | ||||||
| Meituan, Cl B* | 7,300 | 153,999 | ||||||
| New Oriental Education & Technology Group* | 3,900 | 9,887 | ||||||
| NIO ADR* | 3,067 | 48,367 | ||||||
| Pinduoduo ADR* | 924 | 57,824 | ||||||
| SAIC Motor, Cl A | 4,857 | 9,743 | ||||||
| Shenzhen Overseas Chinese Town, Cl A | 18,200 | 12,280 | ||||||
| Shenzhou International Group Holdings | 2,500 | 19,538 | ||||||
| TAL Education Group ADR* | 728 | 3,596 | ||||||
| Trip.com Group ADR* | 1,290 | 35,230 | ||||||
| Vipshop Holdings ADR* | 1,225 | 10,302 | ||||||
| XPeng ADR, Cl A* | 1,438 | 17,184 | ||||||
| Yum China Holdings | 812 | 38,432 | ||||||
| 1,201,329 | ||||||||
| Consumer Staples — 11.4% | ||||||||
| Anhui Gujing Distillery, Cl A | 800 | 30,517 | ||||||
| China Mengniu Dairy | 8,000 | 31,746 | ||||||
| China Resources Beer Holdings | 4,000 | 27,847 | ||||||
| Foshan Haitian Flavouring & Food, Cl A | 3,179 | 36,928 | ||||||
| Guangdong Haid Group, Cl A | 3,300 | 27,903 | ||||||
| Henan Shuanghui Investment & Development, Cl A | 3,300 | 11,322 | ||||||
| Inner Mongolia Yili Industrial Group, Cl A | 5,100 | 23,593 | ||||||
| Jiangsu Yanghe Brewery JSC, Cl A | 1,000 | 22,183 | ||||||
| Kweichow Moutai, Cl A | 700 | 183,858 | ||||||
| Luzhou Laojiao, Cl A | 1,500 | 48,532 | ||||||
| Muyuan Foods, Cl A | 5,702 | 43,606 | ||||||
| New Hope Liuhe, Cl A* | 9,000 | 17,548 | ||||||
| Shanxi Xinghuacun Fen Wine Factory, Cl A | 1,060 | 45,035 | ||||||
| Tingyi Cayman Islands Holding | 8,000 | 13,799 | ||||||
| Want Want China Holdings | 15,000 | 9,803 | ||||||
| Yonghui Superstores, Cl A | 11,800 | 5,181 | ||||||
| 579,401 | ||||||||
The accompanying notes are an integral part of the financial statements.
15
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI All China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Energy — 3.7% | ||||||||
| China Oilfield Services, Cl H | 10,000 | $ | 9,924 | |||||
| China Petroleum & Chemical, Cl A | 31,100 | 18,714 | ||||||
| China Petroleum & Chemical, Cl H | 64,500 | 27,690 | ||||||
| China Shenhua Energy, Cl H | 7,500 | 22,405 | ||||||
| Offshore Oil Engineering, Cl A | 11,700 | 7,303 | ||||||
| PetroChina, Cl A | 14,700 | 10,578 | ||||||
| PetroChina, Cl H | 47,984 | 19,683 | ||||||
| Shaanxi Coal Industry, Cl A | 8,000 | 25,551 | ||||||
| Shanxi Lu’an Environmental Energy Development, Cl A | 4,900 | 11,602 | ||||||
| Yankuang Energy Group, Cl H | 10,000 | 36,370 | ||||||
| 189,820 | ||||||||
| Financials — 20.9% | ||||||||
| Agricultural Bank of China, Cl A | 44,000 | 17,651 | ||||||
| Agricultural Bank of China, Cl H | 70,397 | 21,075 | ||||||
| AVIC Industry-Finance Holdings, Cl A | 14,100 | 5,953 | ||||||
| Bank of Beijing, Cl A | 18,600 | 10,723 | ||||||
| Bank of China, Cl A | 22,800 | 9,882 | ||||||
| Bank of China, Cl H | 161,396 | 52,840 | ||||||
| Bank of Communications, Cl A | 29,200 | 18,923 | ||||||
| Bank of Communications, Cl H | 21,000 | 11,075 | ||||||
| Bank of Hangzhou, Cl A | 9,500 | 18,989 | ||||||
| Bank of Jiangsu, Cl A | 14,800 | 15,445 | ||||||
| Bank of Nanjing, Cl A | 9,300 | 13,723 | ||||||
| Bank of Ningbo, Cl A | 4,800 | 21,242 | ||||||
| Bank of Shanghai, Cl A | 12,304 | 10,096 | ||||||
| Changjiang Securities, Cl A | 13,800 | 10,085 | ||||||
| China Cinda Asset Management, Cl H | 67,504 | 7,481 | ||||||
| China CITIC Bank, Cl H | 21,000 | 8,347 | ||||||
| China Construction Bank, Cl A | 7,800 | 6,039 | ||||||
| China Construction Bank, Cl H | 186,000 | 107,573 | ||||||
| China Everbright Bank, Cl A | 36,500 | 14,438 | ||||||
| China Galaxy Securities, Cl H | 25,000 | 11,561 | ||||||
| China Life Insurance, Cl H | 15,483 | 19,842 | ||||||
| China Merchants Bank, Cl A | 12,100 | 57,113 | ||||||
| China Merchants Bank, Cl H | 9,000 | 41,848 | ||||||
| China Merchants Securities, Cl A | 6,400 | 11,078 | ||||||
| China Minsheng Banking, Cl A | 33,800 | 16,072 | ||||||
| China Minsheng Banking, Cl H | 19,000 | 5,446 | ||||||
| China Pacific Insurance Group, Cl A | 4,800 | 13,688 | ||||||
| China Pacific Insurance Group, Cl H | 7,200 | 13,263 | ||||||
| China Taiping Insurance Holdings | 4,000 | 3,368 | ||||||
The accompanying notes are an integral part of the financial statements.
16
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI All China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Financials (continued) | ||||||||
| CITIC Securities, Cl A | 10,645 | $ | 26,011 | |||||
| CITIC Securities, Cl H | 5,000 | 8,497 | ||||||
| Everbright Securities, Cl A | 6,900 | 12,727 | ||||||
| Far East Horizon | 9,000 | 6,077 | ||||||
| Founder Securities, Cl A | 11,200 | 10,290 | ||||||
| GF Securities, Cl A | 6,600 | 13,211 | ||||||
| GF Securities, Cl H | 10,000 | 10,892 | ||||||
| Guosen Securities, Cl A | 7,200 | 8,685 | ||||||
| Guotai Junan Securities, Cl A | 5,400 | 10,354 | ||||||
| Haitong Securities, Cl A | 8,400 | 10,204 | ||||||
| Huatai Securities, Cl A | 8,000 | 13,601 | ||||||
| Huatai Securities, Cl H | 6,000 | 6,604 | ||||||
| Huaxia Bank, Cl A | 12,200 | 8,608 | ||||||
| Industrial & Commercial Bank of China, Cl A | 44,900 | 27,397 | ||||||
| Industrial & Commercial Bank of China, Cl H | 143,441 | 67,245 | ||||||
| Industrial Bank, Cl A | 13,500 | 31,529 | ||||||
| Industrial Securities, Cl A* | 18,369 | 14,043 | ||||||
| New China Life Insurance, Cl A | 1,500 | 5,668 | ||||||
| New China Life Insurance, Cl H | 2,400 | 4,580 | ||||||
| Orient Securities, Cl A | 9,400 | 10,140 | ||||||
| People’s Insurance Group of China, Cl H | 19,452 | 5,650 | ||||||
| PICC Property & Casualty, Cl H | 17,510 | 18,157 | ||||||
| Ping An Bank, Cl A | 13,291 | 22,074 | ||||||
| Ping An Insurance Group of China, Cl A | 6,800 | 39,660 | ||||||
| Ping An Insurance Group of China, Cl H | 12,500 | 62,421 | ||||||
| Shanghai Pudong Development Bank, Cl A | 19,200 | 18,960 | ||||||
| Shenwan Hongyuan Group, Cl A | 21,700 | 11,749 | ||||||
| 1,059,893 | ||||||||
| Health Care — 6.0% | ||||||||
| 3SBio | 5,000 | 3,548 | ||||||
| BeiGene ADR* | 143 | 19,279 | ||||||
| Beijing Tongrentang, Cl A | 1,244 | 7,948 | ||||||
| Changchun High & New Technology Industry Group, Cl A | 800 | 19,116 | ||||||
| China Medical System Holdings | 6,000 | 7,162 | ||||||
| China Traditional Chinese Medicine Holdings | 12,000 | 4,189 | ||||||
| CSPC Pharmaceutical Group | 27,520 | 27,275 | ||||||
| Dong-E-E-Jiao, Cl A | 2,000 | 9,087 | ||||||
| Genscript Biotech* | 8,000 | 17,488 | ||||||
| Guangzhou Baiyunshan Pharmaceutical Holdings, Cl A | 1,500 | 5,462 | ||||||
| Huadong Medicine, Cl A | 1,880 | 10,580 | ||||||
| Hualan Biological Engineering, Cl A | 3,980 | 10,138 | ||||||
The accompanying notes are an integral part of the financial statements.
17
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI All China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Health Care (continued) | ||||||||
| Hutchmed China ADR* | 665 | $ | 5,892 | |||||
| Jiangsu Hengrui Medicine, Cl A | 3,816 | 18,788 | ||||||
| Meinian Onehealth Healthcare Holdings, Cl A* | 8,860 | 5,307 | ||||||
| Shanghai Fosun Pharmaceutical Group, Cl A | 2,600 | 10,780 | ||||||
| Shanghai Fosun Pharmaceutical Group, Cl H | 2,000 | 4,851 | ||||||
| Shanghai Pharmaceuticals Holding, Cl A | 5,000 | 11,579 | ||||||
| Sichuan Kelun Pharmaceutical, Cl A | 900 | 2,782 | ||||||
| Sinopharm Group, Cl H | 4,000 | 8,020 | ||||||
| Tasly Pharmaceutical Group, Cl A | 1,500 | 2,054 | ||||||
| Tonghua Dongbao Pharmaceutical, Cl A | 9,800 | 11,863 | ||||||
| Wuxi Biologics Cayman* | 6,000 | 36,230 | ||||||
| Yunnan Baiyao Group, Cl A | 1,240 | 9,105 | ||||||
| Zai Lab ADR* | 244 | 8,345 | ||||||
| Zhangzhou Pientzehuang Pharmaceutical, Cl A | 400 | 14,970 | ||||||
| Zhejiang NHU, Cl A | 4,632 | 14,417 | ||||||
| 306,255 | ||||||||
| Industrials — 6.6% | ||||||||
| AECC Aviation Power, Cl A | 2,600 | 15,299 | ||||||
| AVIC Electromechanical Systems, Cl A | 4,300 | 6,840 | ||||||
| Beijing Capital International Airport, Cl H* | 8,000 | 4,331 | ||||||
| China Conch Venture Holdings | 5,000 | 7,975 | ||||||
| China Eastern Airlines, Cl A* | 16,200 | 11,089 | ||||||
| China Energy Engineering | 53,137 | 16,696 | ||||||
| China Everbright Environment Group | 10,323 | 4,287 | ||||||
| China Merchants Port Holdings | 10,494 | 13,195 | ||||||
| China Railway Group, Cl H | 15,000 | 7,357 | ||||||
| China Southern Airlines, Cl A* | 15,400 | 14,343 | ||||||
| CITIC | 10,780 | 10,162 | ||||||
| COSCO SHIPPING Holdings, Cl A | 16,320 | 25,227 | ||||||
| Daqin Railway, Cl A | 10,200 | 9,686 | ||||||
| Fosun International | 7,500 | 4,653 | ||||||
| Guangzhou Baiyun International Airport, Cl A* | 13,000 | 26,003 | ||||||
| Jiangsu Expressway, Cl H | 10,000 | 7,503 | ||||||
| Metallurgical Corp of China, Cl A | 26,900 | 11,282 | ||||||
| Power Construction Corp of China, Cl A | 12,300 | 12,025 | ||||||
| Sany Heavy Industry, Cl A | 9,000 | 17,522 | ||||||
| Shanghai International Airport, Cl A* | 1,000 | 8,105 | ||||||
| Shanghai International Port Group, Cl A | 8,200 | 6,395 | ||||||
| Shenzhen International Holdings | 9,923 | 7,585 | ||||||
| Weichai Power, Cl A | 11,388 | 15,367 | ||||||
| Xinjiang Goldwind Science & Technology, Cl A | 6,949 | 11,053 | ||||||
The accompanying notes are an integral part of the financial statements.
18
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI All China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Industrials (continued) | ||||||||
| Yutong Bus, Cl A | 12,644 | $ | 12,433 | |||||
| Zhejiang Chint Electrics, Cl A | 2,500 | 9,391 | ||||||
| Zhuzhou CRRC Times Electric, Cl H | 2,000 | 8,408 | ||||||
| Zoomlion Heavy Industry Science and Technology, Cl A | 10,600 | 8,237 | ||||||
| ZTO Express Cayman ADR* | 942 | 22,636 | ||||||
| 335,085 | ||||||||
| Information Technology — 5.6% | ||||||||
| AAC Technologies Holdings* | 2,500 | 3,911 | ||||||
| Aisino, Cl A | 1,600 | 2,190 | ||||||
| BOE Technology Group, Cl A | 31,700 | 14,540 | ||||||
| DHC Software, Cl A | 10,700 | 8,000 | ||||||
| GDS Holdings, Cl A* | 2,400 | 5,259 | ||||||
| Hanergy Thin Film Power Group*(A) | 4,364 | — | ||||||
| Hengtong Optic-electric, Cl A | 2,100 | 5,361 | ||||||
| Iflytek, Cl A | 2,100 | 9,668 | ||||||
| Kingboard Holdings | 3,000 | 8,484 | ||||||
| Kingdee International Software Group* | 10,000 | 13,096 | ||||||
| Lenovo Group | 20,000 | 13,911 | ||||||
| LONGi Green Energy Technology, Cl A* | 6,529 | 43,875 | ||||||
| Luxshare Precision Industry, Cl A | 7,874 | 32,472 | ||||||
| NavInfo, Cl A | 4,400 | 7,122 | ||||||
| OFILM Group, Cl A* | 3,682 | 2,722 | ||||||
| Sanan Optoelectronics, Cl A | 11,000 | 26,971 | ||||||
| Sunny Optical Technology Group | 1,900 | 18,189 | ||||||
| Tianma Microelectronics, Cl A | 4,200 | 5,014 | ||||||
| TravelSky Technology, Cl H | 4,000 | 6,125 | ||||||
| Unigroup Guoxin Microelectronics, Cl A | 1,520 | 30,702 | ||||||
| Yonyou Network Technology, Cl A | 3,525 | 8,702 | ||||||
| Zhejiang Dahua Technology, Cl A | 3,500 | 6,309 | ||||||
| ZTE, Cl H | 5,000 | 8,968 | ||||||
| 281,591 | ||||||||
| Materials — 4.3% | ||||||||
| Anhui Conch Cement, Cl A | 2,500 | 10,103 | ||||||
| Anhui Conch Cement, Cl H | 2,500 | 7,930 | ||||||
| Baoshan Iron & Steel, Cl A | 18,900 | 13,945 | ||||||
| BBMG, Cl A | 17,800 | 6,217 | ||||||
| China National Building Material, Cl H | 12,000 | 9,187 | ||||||
| China Northern Rare Earth Group High-Tech, Cl A | 7,100 | 26,451 | ||||||
| China Resources Cement Holdings | 10,000 | 4,637 | ||||||
| CMOC Group, Cl H | 36,000 | 14,079 | ||||||
| Ganfeng Lithium Group, Cl A | 2,020 | 21,206 | ||||||
The accompanying notes are an integral part of the financial statements.
19
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI All China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Materials (continued) | ||||||||
| Hesteel, Cl A | 20,300 | $ | 6,407 | |||||
| Inner Mongolia BaoTou Steel Union, Cl A | 42,300 | 10,917 | ||||||
| Rongsheng Petrochemical, Cl A | 8,250 | 16,004 | ||||||
| Shandong Hualu Hengsheng Chemical, Cl A | 3,640 | 14,894 | ||||||
| Sinopec Shanghai Petrochemical, Cl A | 21,600 | 9,029 | ||||||
| Tianqi Lithium, Cl A* | 940 | 13,238 | ||||||
| Zhejiang Huayou Cobalt, Cl A | 1,104 | 9,964 | ||||||
| Zhejiang Longsheng Group, Cl A | 9,000 | 11,374 | ||||||
| Zijin Mining Group, Cl A | 11,800 | 12,977 | ||||||
| 218,559 | ||||||||
| Real Estate — 4.3% | ||||||||
| China Evergrande Group*(A) | 13,000 | 1,893 | ||||||
| China Jinmao Holdings Group | 20,000 | 4,076 | ||||||
| China Merchants Shekou Industrial Zone Holdings, Cl A | 5,900 | 13,523 | ||||||
| China Overseas Land & Investment | 11,839 | 30,842 | ||||||
| China Resources Land | 8,214 | 32,333 | ||||||
| China Vanke, Cl A | 7,043 | 17,615 | ||||||
| China Vanke, Cl H | 6,100 | 11,112 | ||||||
| CIFI Holdings Group | 22,203 | 2,263 | ||||||
| Country Garden Holdings | 34,612 | 8,025 | ||||||
| Gemdale, Cl A | 6,900 | 11,121 | ||||||
| Greenland Holdings, Cl A* | 15,906 | 6,225 | ||||||
| Longfor Group Holdings | 5,000 | 14,363 | ||||||
| Poly Developments and Holdings Group, Cl A | 8,500 | 21,461 | ||||||
| Seazen Holdings, Cl A* | 4,300 | 10,543 | ||||||
| Shimao Group Holdings*(A) | 17,500 | 6,726 | ||||||
| Sunac China Holdings*(A) | 13,000 | 5,178 | ||||||
| Xinhu Zhongbao, Cl A* | 54,700 | 18,798 | ||||||
| 216,097 | ||||||||
| Utilities — 3.0% | ||||||||
| Beijing Enterprises Water Group | 20,000 | 4,611 | ||||||
| China Gas Holdings | 7,400 | 8,870 | ||||||
| China Longyuan Power Group, Cl H | 10,000 | 12,548 | ||||||
| China Resources Gas Group | 5,000 | 15,892 | ||||||
| China Resources Power Holdings | 8,000 | 12,433 | ||||||
| ENN Energy Holdings | 1,582 | 21,161 | ||||||
| Guangdong Investment | 10,000 | 8,013 | ||||||
| Huadian Power International, Cl A | 33,900 | 28,293 | ||||||
| Huaneng Power International, Cl H* | 27,077 | 11,797 | ||||||
| SDIC Power Holdings, Cl A | 8,900 | 13,408 | ||||||
| Sichuan Chuantou Energy, Cl A | 9,000 | 15,187 | ||||||
| 152,213 | ||||||||
| TOTAL CHINA | 5,043,996 | |||||||
The accompanying notes are an integral part of the financial statements.
20
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI All China Index ETF (continued)
| Shares | Value | |||||||
| HONG KONG — 0.5% | ||||||||
| Communication Services — 0.1% | ||||||||
| Alibaba Pictures Group* | 100,000 | $ | 5,159 | |||||
| Health Care — 0.2% | ||||||||
| Sino Biopharmaceutical | 23,500 | 11,047 | ||||||
| Materials — 0.2% | ||||||||
| Nine Dragons Paper Holdings | 16,000 | 9,947 | ||||||
| TOTAL HONG KONG | 26,153 | |||||||
| TOTAL COMMON STOCK | ||||||||
| (Cost $7,824,792) | 5,070,149 | |||||||
| RIGHT — 0.0% | ||||||||
| CHINA — 0.0% | ||||||||
| Health Care — 0.0% | ||||||||
| Kangmei Pharma‡‡(A) | 480 | — | ||||||
| TOTAL CHINA | — | |||||||
| TOTAL RIGHT | ||||||||
| (Cost $—) | — | |||||||
| TOTAL INVESTMENTS — 99.9% | ||||||||
| (Cost $7,824,792) | 5,070,149 | |||||||
| OTHER ASSETS LESS LIABILITIES — 0.1% | 4,574 | |||||||
| NET ASSETS — 100% | $ | 5,074,723 | ||||||
| ‡ | Industries are utilized for compliance purposes, whereas sectors are utilized for reporting. |
| * | Non-income producing security. |
| ‡‡ | Expiration date not available. |
| (A) | Level 3 security in accordance with fair value hierarchy. |
ADR — American Depositary Receipt
Cl — Class
JSC — Joint-Stock Company
The accompanying notes are an integral part of the financial statements.
21
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI All China Index ETF (concluded)
The following summarizes the market value of the Fund’s investments used as of September 30, 2022, based on the inputs used to value them:
| Investments in Securities | Level 1 | Level 2 | Level 3^ | Total | ||||||||||||
| Common Stock | ||||||||||||||||
| China | ||||||||||||||||
| Communication Services | $ | 503,753 | $ | — | $ | — | $ | 503,753 | ||||||||
| Consumer Discretionary | 1,184,673 | 1,538 | 15,118 | 1,201,329 | ||||||||||||
| Consumer Staples | 579,401 | — | — | 579,401 | ||||||||||||
| Energy | 189,820 | — | — | 189,820 | ||||||||||||
| Financials | 1,059,893 | — | — | 1,059,893 | ||||||||||||
| Health Care | 304,201 | 2,054 | — | 306,255 | ||||||||||||
| Industrials | 335,085 | — | — | 335,085 | ||||||||||||
| Information Technology | 281,591 | — | — | ‡‡ | 281,591 | |||||||||||
| Materials | 218,559 | — | — | 218,559 | ||||||||||||
| Real Estate | 202,300 | — | 13,797 | 216,097 | ||||||||||||
| Utilities | 152,213 | — | — | 152,213 | ||||||||||||
| Hong Kong | 26,153 | — | — | 26,153 | ||||||||||||
| Total Common Stock | 5,037,642 | 3,592 | 28,915 | 5,070,149 | ||||||||||||
| Right | — | — | — | ‡‡ | — | |||||||||||
| Total Investments in Securities | $ | 5,037,642 | $ | 3,592 | $ | 28,915 | $ | 5,070,149 | ||||||||
| ^ | A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets. |
| ‡‡ | Security or securities with a market value of $0. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
22
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI One Belt One Road Index ETF
| Shares | Value | |||||||
| COMMON STOCK — 99.3%‡ | ||||||||
| CHINA — 46.7% | ||||||||
| Energy — 0.6% | ||||||||
| Guanghui Energy, Cl A | 15,300 | $ | 26,354 | |||||
| Financials — 4.2% | ||||||||
| Bank of Changsha, Cl A | 8,300 | 7,707 | ||||||
| Bank of Chengdu, Cl A | 7,400 | 16,982 | ||||||
| Bank of Guiyang, Cl A | 7,527 | 5,723 | ||||||
| Bank of Hangzhou, Cl A | 12,200 | 24,386 | ||||||
| Bank of Jiangsu, Cl A | 30,255 | 31,574 | ||||||
| Bank of Nanjing, Cl A | 22,591 | 33,336 | ||||||
| Bank of Ningbo, Cl A | 13,646 | 60,390 | ||||||
| Chongqing Rural Commercial Bank, Cl A | 18,300 | 9,164 | ||||||
| 189,262 | ||||||||
| Industrials — 24.8% | ||||||||
| Beijing New Building Materials, Cl A | 3,408 | 11,497 | ||||||
| Beijing-Shanghai High Speed Railway, Cl A | 85,100 | 53,955 | ||||||
| China Communications Services, Cl H | 18,000 | 6,054 | ||||||
| China Conch Venture Holdings | 12,500 | 19,937 | ||||||
| China Energy Engineering | 74,000 | 23,251 | ||||||
| China Lesso Group Holdings | 7,000 | 6,519 | ||||||
| China Railway Group, Cl H | 29,500 | 14,468 | ||||||
| China State Construction Engineering, Cl A | 90,200 | 65,159 | ||||||
| Contemporary Amperex Technology, Cl A | 5,000 | 281,163 | ||||||
| CRRC, Cl H | 31,000 | 10,031 | ||||||
| Daqin Railway, Cl A | 30,532 | 28,994 | ||||||
| Dongfang Electric, Cl A | 5,700 | 16,342 | ||||||
| Gotion High-tech, Cl A | 3,500 | 14,988 | ||||||
| Guangdong Kinlong Hardware Products, Cl A | 700 | 8,693 | ||||||
| Jiangsu Expressway, Cl H | 10,000 | 7,503 | ||||||
| Jiangsu Hengli Hydraulic, Cl A | 2,600 | 16,514 | ||||||
| Jiangxi Special Electric Motor, Cl A* | 3,600 | 9,913 | ||||||
| Liaoning Port, Cl A | 47,100 | 10,571 | ||||||
The accompanying notes are an integral part of the financial statements.
23
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI One Belt One Road Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Industrials (continued) | ||||||||
| Luoyang Xinqianglian Slewing Bearing, Cl A | 750 | $ | 9,268 | |||||
| Metallurgical Corp of China, Cl A | 37,000 | 15,517 | ||||||
| Ming Yang Smart Energy Group, Cl A | 4,300 | 14,554 | ||||||
| NARI Technology, Cl A | 13,860 | 48,350 | ||||||
| Ningbo Deye Technology, Cl A | 400 | 23,577 | ||||||
| Ningbo Orient Wires & Cables, Cl A | 1,400 | 13,693 | ||||||
| Ningbo Ronbay New Energy Technology, Cl A | 916 | 10,812 | ||||||
| North Industries Group Red Arrow, Cl A | 2,800 | 8,778 | ||||||
| Power Construction Corp of China, Cl A | 32,000 | 31,286 | ||||||
| Riyue Heavy Industry, Cl A | 2,000 | 5,891 | ||||||
| Sany Heavy Equipment International Holdings | 7,000 | 6,831 | ||||||
| Sany Heavy Industry, Cl A | 17,600 | 34,266 | ||||||
| Shanghai Construction Group, Cl A | 18,700 | 6,636 | ||||||
| Shanghai Electric Group, Cl A* | 26,300 | 14,277 | ||||||
| Shanghai International Port Group, Cl A | 18,810 | 14,670 | ||||||
| Shenzhen Inovance Technology, Cl A | 5,850 | 47,191 | ||||||
| Shenzhen International Holdings | 9,993 | 7,638 | ||||||
| Sichuan Road & Bridge, Cl A | 9,900 | 14,192 | ||||||
| Sieyuan Electric, Cl A | 1,600 | 8,578 | ||||||
| Sinotruk Hong Kong | 4,500 | 3,766 | ||||||
| Suzhou Maxwell Technologies, Cl A | 440 | 29,869 | ||||||
| TBEA, Cl A | 7,575 | 23,026 | ||||||
| Titan Wind Energy Suzhou, Cl A | 4,300 | 7,630 | ||||||
| Wuxi Shangji Automation, Cl A | 800 | 15,138 | ||||||
| XCMG Construction Machinery, Cl A | 18,348 | 11,530 | ||||||
| Xinjiang Goldwind Science & Technology, Cl H | 5,200 | 6,035 | ||||||
| Yangzijiang Shipbuilding Holdings | 27,300 | 19,597 | ||||||
| Zhefu Holding Group, Cl A | 13,400 | 7,349 | ||||||
| Zhejiang Expressway, Cl H | 12,000 | 8,178 | ||||||
| Zhejiang Weixing New Building Materials, Cl A | 3,800 | 10,980 | ||||||
| Zhuzhou CRRC Times Electric, Cl H | 3,900 | 16,395 | ||||||
| Zhuzhou Kibing Group, Cl A | 5,500 | 7,445 | ||||||
| Zoomlion Heavy Industry Science and Technology, Cl H | 13,600 | 4,730 | ||||||
| 1,113,225 | ||||||||
| Materials — 3.8% | ||||||||
| Anhui Conch Cement, Cl H | 9,500 | 30,134 | ||||||
| Chengtun Mining Group, Cl A | 5,700 | 5,189 | ||||||
| China Minmetals Rare Earth, Cl A* | 2,500 | 9,230 | ||||||
| China National Building Material, Cl H | 29,000 | 22,203 | ||||||
| China Northern Rare Earth Group High-Tech, Cl A | 7,424 | 27,658 | ||||||
The accompanying notes are an integral part of the financial statements.
24
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI One Belt One Road Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Materials (continued) | ||||||||
| China Resources Cement Holdings | 18,000 | $ | 8,347 | |||||
| Henan Shenhuo Coal & Power, Cl A | 6,300 | 14,837 | ||||||
| Huaxin Cement, Cl A | 2,800 | 6,579 | ||||||
| Shenghe Resources Holding, Cl A | 3,600 | 7,645 | ||||||
| Tangshan Jidong Cement, Cl A | 6,000 | 7,036 | ||||||
| Xiamen Tungsten, Cl A | 2,900 | 9,205 | ||||||
| Yintai Gold, Cl A | 5,900 | 10,643 | ||||||
| Youngy, Cl A* | 500 | 7,894 | ||||||
| Yunnan Tin, Cl A | 3,400 | 5,876 | ||||||
| 172,476 | ||||||||
| Utilities — 13.3% | ||||||||
| Beijing Enterprises Holdings | 3,500 | 9,831 | ||||||
| CECEP Solar Energy, Cl A | 8,600 | 8,239 | ||||||
| CECEP Wind-Power, Cl A | 10,400 | 6,419 | ||||||
| CGN Power, Cl H | 77,000 | 16,675 | ||||||
| China Gas Holdings | 21,000 | 25,174 | ||||||
| China Longyuan Power Group, Cl H | 23,000 | 28,860 | ||||||
| China National Nuclear Power, Cl A | 40,000 | 32,823 | ||||||
| China Power International Development | 39,000 | 15,550 | ||||||
| China Resources Gas Group | 6,700 | 21,295 | ||||||
| China Resources Power Holdings | 12,635 | 19,637 | ||||||
| China Three Gorges Renewables Group, Cl A | 59,700 | 47,146 | ||||||
| China Yangtze Power, Cl A | 47,500 | 151,512 | ||||||
| ENN Energy Holdings | 5,500 | 73,568 | ||||||
| ENN Natural Gas, Cl A | 4,900 | 12,757 | ||||||
| GD Power Development, Cl A* | 37,100 | 21,180 | ||||||
| Huadian Power International, Cl A | 17,042 | 14,223 | ||||||
| Huaneng Power International, Cl H* | 31,000 | 13,506 | ||||||
| Kunlun Energy | 28,000 | 20,224 | ||||||
| SDIC Power Holdings, Cl A | 15,506 | 23,360 | ||||||
| Shenergy, Cl A | 15,019 | 12,135 | ||||||
| Shenzhen Energy Group, Cl A | 10,800 | 8,499 | ||||||
| Sichuan Chuantou Energy, Cl A | 7,584 | 12,797 | ||||||
| 595,410 | ||||||||
| TOTAL CHINA | 2,096,727 | |||||||
| HONG KONG — 0.2% | ||||||||
| Industrials — 0.2% | ||||||||
| Hutchison Port Holdings Trust, Cl U | 56,100 | 10,322 | ||||||
| TOTAL HONG KONG | 10,322 | |||||||
The accompanying notes are an integral part of the financial statements.
25
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI One Belt One Road Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| INDIA — 2.8% | ||||||||
| Industrials — 0.6% | ||||||||
| AIA Engineering | 924 | $ | 28,500 | |||||
| Materials — 2.2% | ||||||||
| Clean Science & Technology | 449 | 9,709 | ||||||
| National Aluminium | 17,391 | 15,242 | ||||||
| PI Industries | 1,599 | 58,934 | ||||||
| Vinati Organics | 545 | 13,978 | ||||||
| 97,863 | ||||||||
| TOTAL INDIA | 126,363 | |||||||
| INDONESIA — 3.4% | ||||||||
| Energy — 2.3% | ||||||||
| Adaro Energy Indonesia | 306,100 | 79,603 | ||||||
| Indo Tambangraya Megah | 8,600 | 23,396 | ||||||
| 102,999 | ||||||||
| Materials — 1.1% | ||||||||
| Indah Kiat Pulp & Paper | 57,800 | 34,352 | ||||||
| Pabrik Kertas Tjiwi Kimia | 29,900 | 14,481 | ||||||
| 48,833 | ||||||||
| TOTAL INDONESIA | 151,832 | |||||||
| ISRAEL — 6.8% | ||||||||
| Industrials — 3.3% | ||||||||
| Elbit Systems | 553 | 105,251 | ||||||
| ZIM Integrated Shipping Services | 1,788 | 42,018 | ||||||
| 147,269 | ||||||||
| Materials — 3.5% | ||||||||
| ICL Group | 15,190 | 122,987 | ||||||
| Israel | 86 | 33,413 | ||||||
| 156,400 | ||||||||
| TOTAL ISRAEL | 303,669 | |||||||
| JORDAN — 0.3% | ||||||||
| Financials — 0.3% | ||||||||
| Arab Bank | 2,088 | 13,742 | ||||||
| TOTAL JORDAN | 13,742 | |||||||
| KAZAKHSTAN — 0.8% | ||||||||
| Energy — 0.8% | ||||||||
| NAC Kazatomprom JSC GDR | 1,360 | 35,002 | ||||||
| TOTAL KAZAKHSTAN | 35,002 | |||||||
The accompanying notes are an integral part of the financial statements.
26
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI One Belt One Road Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| KUWAIT — 6.6% | ||||||||
| Financials — 6.6% | ||||||||
| Kuwait Finance House | 106,044 | $ | 287,733 | |||||
| Kuwait Projects Holding | 19,929 | 8,552 | ||||||
| TOTAL KUWAIT | 296,285 | |||||||
| MALAYSIA — 4.4% | ||||||||
| Industrials — 0.8% | ||||||||
| Pentamaster | 12,300 | 11,008 | ||||||
| Sime Darby | 58,600 | 27,044 | ||||||
| 38,052 | ||||||||
| Materials — 3.6% | ||||||||
| Petronas Chemicals Group | 50,500 | 91,373 | ||||||
| Press Metal Aluminium Holdings | 79,100 | 68,916 | ||||||
| 160,289 | ||||||||
| TOTAL MALAYSIA | 198,341 | |||||||
| PHILIPPINES — 3.0% | ||||||||
| Industrials — 3.0% | ||||||||
| Aboitiz Equity Ventures | 35,800 | 32,762 | ||||||
| International Container Terminal Services | 21,420 | 57,218 | ||||||
| JG Summit | 64,502 | 46,265 | ||||||
| TOTAL PHILIPPINES | 136,245 | |||||||
| POLAND — 1.1% | ||||||||
| Materials — 1.1% | ||||||||
| KGHM Polska Miedz | 2,924 | 51,897 | ||||||
| TOTAL POLAND | 51,897 | |||||||
| RUSSIA — 0.0% | ||||||||
| Energy — 0.0% | ||||||||
| Rosneft Oil PJSC(A) | 33,666 | — | ||||||
| Sovcomflot PJSC*(A) | 9,110 | — | ||||||
| Surgutneftegas*(A) | 143,400 | — | ||||||
| — | ||||||||
| Materials — 0.0% | ||||||||
| MMC Norilsk Nickel PJSC(A) | 1,239 | — | ||||||
| Polymetal International*(A) | 7,154 | — | ||||||
| Segezha Group PJSC(A) | 78,500 | — | ||||||
| — | ||||||||
| TOTAL RUSSIA | — | |||||||
The accompanying notes are an integral part of the financial statements.
27
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI One Belt One Road Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| SINGAPORE — 10.3% | ||||||||
| Financials — 6.5% | ||||||||
| Oversea-Chinese Banking | 35,612 | $ | 293,602 | |||||
| Industrials — 3.8% | ||||||||
| Keppel | 15,300 | 74,106 | ||||||
| Singapore Airlines* | 14,400 | 51,181 | ||||||
| Singapore Technologies Engineering | 17,100 | 42,664 | ||||||
| 167,951 | ||||||||
| TOTAL SINGAPORE | 461,553 | |||||||
| SOUTH AFRICA — 6.4% | ||||||||
| Financials — 0.2% | ||||||||
| Ninety One | 4,009 | 7,803 | ||||||
| Materials — 6.2% | ||||||||
| Anglo American Platinum | 1,122 | 80,425 | ||||||
| Impala Platinum Holdings | 17,970 | 169,646 | ||||||
| Kumba Iron Ore | 1,373 | 29,628 | ||||||
| 279,699 | ||||||||
| TOTAL SOUTH AFRICA | 287,502 | |||||||
| THAILAND — 4.9% | ||||||||
| Energy — 4.1% | ||||||||
| PTT | 206,700 | 186,315 | ||||||
| Materials — 0.8% | ||||||||
| Indorama Ventures | 33,400 | 34,533 | ||||||
| TOTAL THAILAND | 220,848 | |||||||
| TURKEY — 1.0% | ||||||||
| Industrials — 1.0% | ||||||||
| Turk Hava Yollari AO* | 11,578 | 44,092 | ||||||
| TOTAL TURKEY | 44,092 | |||||||
| UNITED ARAB EMIRATES — 0.6% | ||||||||
| Industrials — 0.6% | ||||||||
| Air Arabia PJSC | 48,174 | 27,412 | ||||||
| TOTAL UNITED ARAB EMIRATES | 27,412 | |||||||
| TOTAL COMMON STOCK | ||||||||
| (Cost $5,651,071) | 4,461,832 | |||||||
The accompanying notes are an integral part of the financial statements.
28
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI One Belt One Road Index ETF (continued)
| Shares | Value | |||||||
| PREFERRED STOCK — 0.0% | ||||||||
| RUSSIA — 0.0% | ||||||||
| Energy — 0.0% | ||||||||
| Surgutneftegas PJSC(A)(B) | 136,600 | $ | — | |||||
| TOTAL PREFERRED STOCK | ||||||||
| (Cost $74,846) | — | |||||||
| TOTAL INVESTMENTS — 99.3% | ||||||||
| (Cost $5,725,917) | 4,461,832 | |||||||
| OTHER ASSETS LESS LIABILITIES — 0.7% | 31,462 | |||||||
| NET ASSETS — 100% | $ | 4,493,294 | ||||||
| ‡ | Industries are utilized for compliance purposes, whereas sectors are utilized for reporting. |
| * | Non-income producing security. |
| (A) | Level 3 security in accordance with fair value hierarchy. |
| (B) | Currently, no stated interest rate. |
Cl — Class
GDR — Global Depositary Receipt
JSC — Joint-Stock Company
PJSC — Public Joint-Stock Company
The accompanying notes are an integral part of the financial statements.
29
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI One Belt One Road Index ETF (concluded)
The following summarizes the market value of the Fund’s investments used as of September 30, 2022, based on the inputs used to value them:
| Investments in Securities | Level 1 | Level 2 | Level 3^ | Total | ||||||||||||
| Common Stock | ||||||||||||||||
| China | ||||||||||||||||
| Energy | $ | 26,354 | $ | — | $ | — | $ | 26,354 | ||||||||
| Financials | 189,262 | — | — | 189,262 | ||||||||||||
| Industrials | 1,102,654 | 10,571 | — | 1,113,225 | ||||||||||||
| Materials | 164,831 | 7,645 | — | 172,476 | ||||||||||||
| Utilities | 595,410 | — | — | 595,410 | ||||||||||||
| Hong Kong | 10,322 | — | — | 10,322 | ||||||||||||
| India | 126,363 | — | — | 126,363 | ||||||||||||
| Indonesia | 151,832 | — | — | 151,832 | ||||||||||||
| Israel | 303,669 | — | — | 303,669 | ||||||||||||
| Jordan | 13,742 | — | — | 13,742 | ||||||||||||
| Kazakhstan | 35,002 | — | — | 35,002 | ||||||||||||
| Kuwait | 296,285 | — | — | 296,285 | ||||||||||||
| Malaysia | 198,341 | — | — | 198,341 | ||||||||||||
| Philippines | 136,245 | — | — | 136,245 | ||||||||||||
| Poland | 51,897 | — | — | 51,897 | ||||||||||||
| Russia | ||||||||||||||||
| Energy | — | — | — | ‡‡ | — | |||||||||||
| Materials | — | — | — | ‡‡ | — | |||||||||||
| Singapore | 461,553 | — | — | 461,553 | ||||||||||||
| South Africa | 287,502 | — | — | 287,502 | ||||||||||||
| Thailand | 220,848 | — | — | 220,848 | ||||||||||||
| Turkey | 44,092 | — | — | 44,092 | ||||||||||||
| United Arab Emirates | 27,412 | — | — | 27,412 | ||||||||||||
| Total Common Stock | 4,443,616 | 18,216 | — | 4,461,832 | ||||||||||||
| Preferred Stock | ||||||||||||||||
| Russia | ||||||||||||||||
| Energy | — | — | — | ‡‡ | — | |||||||||||
| Total Preferred Stock | — | — | — | — | ||||||||||||
| Total Investments in Securities | $ | 4,443,616 | $ | 18,216 | $ | — | $ | 4,461,832 | ||||||||
| ^ | A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets. |
| ‡‡ | Security or securities with a market value of $0. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
30
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Emerging Markets Consumer Technology Index ETF
| Shares | Value | |||||||
| COMMON STOCK — 99.6%‡ | ||||||||
| BRAZIL — 10.3% | ||||||||
| Consumer Discretionary — 4.2% | ||||||||
| Americanas* | 79,970 | $ | 251,050 | |||||
| MercadoLibre* | 1,256 | 1,039,692 | ||||||
| 1,290,742 | ||||||||
| Financials — 2.8% | ||||||||
| XP, Cl A* | 44,101 | 838,360 | ||||||
| Information Technology — 3.3% | ||||||||
| Cielo* | 263,100 | 262,669 | ||||||
| Pagseguro Digital, Cl A* | 16,792 | 222,158 | ||||||
| StoneCo, Cl A* | 28,299 | 269,690 | ||||||
| TOTVS* | 46,300 | 251,237 | ||||||
| 1,005,754 | ||||||||
| TOTAL BRAZIL | 3,134,856 | |||||||
| CHINA — 40.1% | ||||||||
| Communication Services — 13.5% | ||||||||
| Baidu, Cl A* | 74,964 | 1,089,618 | ||||||
| JOYY ADR | 9,150 | 237,900 | ||||||
| Kuaishou Technology, Cl B* | 108,600 | 704,871 | ||||||
| NetEase | 67,400 | 1,017,453 | ||||||
| Tencent Holdings | 31,475 | 1,068,159 | ||||||
| 4,118,001 | ||||||||
| Consumer Discretionary — 22.1% | ||||||||
| Alibaba Group Holding* | 109,300 | 1,085,356 | ||||||
| Alibaba Health Information Technology* | 1,524,000 | 698,913 | ||||||
| JD Health International* | 130,400 | 749,187 | ||||||
| JD.com, Cl A* | 41,225 | 1,042,979 | ||||||
| Meituan, Cl B* | 54,200 | 1,143,393 | ||||||
| Pinduoduo ADR* | 18,072 | 1,130,946 | ||||||
| Trip.com Group* | 33,450 | 898,261 | ||||||
| 6,749,035 | ||||||||
The accompanying notes are an integral part of the financial statements.
31
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Emerging Markets Consumer Technology Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Financials — 2.0% | ||||||||
| Lufax Holding ADR | 233,617 | $ | 593,387 | |||||
| Real Estate — 2.5% | ||||||||
| KE Holdings, Cl A* | 140,200 | 775,128 | ||||||
| TOTAL CHINA | 12,235,551 | |||||||
| GREECE — 2.6% | ||||||||
| Consumer Discretionary — 2.6% | ||||||||
| OPAP | 66,071 | 794,843 | ||||||
| TOTAL GREECE | 794,843 | |||||||
| INDIA — 8.4% | ||||||||
| Communication Services — 2.5% | ||||||||
| Info Edge India | 15,959 | 757,349 | ||||||
| Consumer Discretionary — 3.5% | ||||||||
| MakeMyTrip* | 8,298 | 254,749 | ||||||
| Zomato* | 1,064,702 | 816,019 | ||||||
| 1,070,768 | ||||||||
| Information Technology — 2.4% | ||||||||
| One 97 Communications* | 94,718 | 742,771 | ||||||
| TOTAL INDIA | 2,570,888 | |||||||
| INDONESIA — 1.7% | ||||||||
| Communication Services — 0.9% | ||||||||
| MD Pictures* | 1,517,600 | 288,023 | ||||||
| Consumer Discretionary — 0.8% | ||||||||
| Bukalapak.com* | 13,449,600 | 240,242 | ||||||
| TOTAL INDONESIA | 528,265 | |||||||
| JAPAN — 2.6% | ||||||||
| Communication Services — 2.6% | ||||||||
| Nexon | 45,200 | 796,922 | ||||||
| TOTAL JAPAN | 796,922 | |||||||
| MALAYSIA — 0.8% | ||||||||
| Information Technology — 0.8% | ||||||||
| My EG Services | 1,353,000 | 248,016 | ||||||
| TOTAL MALAYSIA | 248,016 | |||||||
| RUSSIA — 0.0% | ||||||||
| Communication Services — 0.0% | ||||||||
| VK GDR*(A) | 49,503 | — | ||||||
| Yandex, Cl A*(A) | 31,479 | — | ||||||
| — | ||||||||
The accompanying notes are an integral part of the financial statements.
32
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Emerging Markets Consumer Technology Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Consumer Discretionary — 0.0% | ||||||||
| Ozon Holdings PLC ADR*(A) | 58,005 | $ | — | |||||
| Industrials — 0.0% | ||||||||
| HeadHunter Group PLC ADR(A) | 11,746 | — | ||||||
| TOTAL RUSSIA | — | |||||||
| SINGAPORE — 3.6% | ||||||||
| Communication Services — 3.6% | ||||||||
| Sea ADR* | 19,438 | 1,089,500 | ||||||
| TOTAL SINGAPORE | 1,089,500 | |||||||
| SOUTH AFRICA — 4.3% | ||||||||
| Consumer Discretionary — 3.5% | ||||||||
| Naspers, Cl N | 8,406 | 1,058,574 | ||||||
| Industrials — 0.8% | ||||||||
| Hosken Consolidated Investments* | 24,875 | 237,906 | ||||||
| TOTAL SOUTH AFRICA | 1,296,480 | |||||||
| SOUTH KOREA — 17.6% | ||||||||
| Communication Services — 14.9% | ||||||||
| Kakao(B) | 17,412 | 694,922 | ||||||
| Kakao Games*(B) | 7,246 | 216,008 | ||||||
| Krafton* | 4,944 | 725,687 | ||||||
| NAVER | 5,111 | 691,255 | ||||||
| NCSoft | 3,186 | 770,501 | ||||||
| Netmarble(B) | 19,502 | 699,275 | ||||||
| Pearl Abyss*(B) | 6,547 | 213,474 | ||||||
| Studio Dragon*(B) | 4,941 | 229,661 | ||||||
| Wemade(B) | 9,379 | 300,243 | ||||||
| 4,541,026 | ||||||||
| Consumer Discretionary — 2.7% | ||||||||
| Coupang, Cl A* | 49,683 | 828,216 | ||||||
| TOTAL SOUTH KOREA | 5,369,242 | |||||||
| SWEDEN — 0.5% | ||||||||
| Information Technology — 0.5% | ||||||||
| Truecaller, Cl B*(B) | 46,318 | 156,932 | ||||||
| TOTAL SWEDEN | 156,932 | |||||||
| TAIWAN — 2.2% | ||||||||
| Consumer Discretionary — 2.2% | ||||||||
| momo.com | 40,000 | 672,777 | ||||||
| TOTAL TAIWAN | 672,777 | |||||||
The accompanying notes are an integral part of the financial statements.
33
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Emerging Markets Consumer Technology Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| THAILAND — 0.7% | ||||||||
| Information Technology — 0.7% | ||||||||
| Forth | 152,100 | $ | 204,641 | |||||
| TOTAL THAILAND | 204,641 | |||||||
| UNITED ARAB EMIRATES — 0.9% | ||||||||
| Information Technology — 0.9% | ||||||||
| Network International Holdings PLC* | 82,443 | 278,853 | ||||||
| TOTAL UNITED ARAB EMIRATES | 278,853 | |||||||
| UNITED STATES — 2.6% | ||||||||
| Information Technology — 2.6% | ||||||||
| Concentrix | 6,986 | 779,847 | ||||||
| TOTAL UNITED STATES | 779,847 | |||||||
| URUGUAY — 0.7% | ||||||||
| Information Technology — 0.7% | ||||||||
| Dlocal, Cl A* | 10,082 | 206,883 | ||||||
| TOTAL URUGUAY | 206,883 | |||||||
| TOTAL COMMON STOCK | ||||||||
| (Cost $54,902,793) | 30,364,496 | |||||||
| SHORT-TERM INVESTMENT — 8.0% | ||||||||
| Invesco Government & Agency Portfolio, Cl Institutional, 1.380%(C)(D) | 2,456,263 | 2,456,263 | ||||||
| TOTAL SHORT-TERM INVESTMENT | ||||||||
| (Cost $2,456,263) | 2,456,263 | |||||||
| TOTAL INVESTMENTS — 107.6% | ||||||||
| (Cost $57,359,056) | 32,820,759 | |||||||
| OTHER ASSETS LESS LIABILITIES — (7.6)% | (2,305,803 | ) | ||||||
| NET ASSETS — 100% | $ | 30,514,956 | ||||||
| ‡ | Industries are utilized for compliance purposes, whereas sectors are utilized for reporting. |
| * | Non-income producing security. |
| (A) | Level 3 security in accordance with fair value hierarchy. |
| (B) | This security or a partial position of this security is on loan at September 30, 2022. The total market value of securities on loan at September 30, 2022 was $1,932,924. |
| (C) | The rate shown is the 7-day effective yield as of September 30, 2022. |
| (D) | This security was purchased with cash collateral held from securities on loan. The total value of such security as of September 30, 2022 was $2,456,263. |
ADR — American Depositary Receipt
Cl — Class
GDR — Global Depositary Receipt
PLC — Public Limited Company
The accompanying notes are an integral part of the financial statements.
34
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Emerging Markets Consumer Technology Index ETF (concluded)
The following summarizes the market value of the Fund’s investments used as of September 30, 2022, based on the inputs used to value them:
| Investments in Securities | Level 1 | Level 2 | Level 3^ | Total | ||||||||||||
| Common Stock | ||||||||||||||||
| Brazil | $ | 3,134,856 | $ | — | $ | — | $ | 3,134,856 | ||||||||
| China | 12,235,551 | — | — | 12,235,551 | ||||||||||||
| Greece | 794,843 | — | — | 794,843 | ||||||||||||
| India | 2,570,888 | — | — | 2,570,888 | ||||||||||||
| Indonesia | 528,265 | — | — | 528,265 | ||||||||||||
| Japan | 796,922 | — | — | 796,922 | ||||||||||||
| Malaysia | 248,016 | — | — | 248,016 | ||||||||||||
| Russia | ||||||||||||||||
| Communication Services | — | — | — | ‡‡ | — | |||||||||||
| Consumer Discretionary | — | — | — | ‡‡ | — | |||||||||||
| Industrials | — | — | — | ‡‡ | — | |||||||||||
| Singapore | 1,089,500 | — | — | 1,089,500 | ||||||||||||
| South Africa | 1,296,480 | — | — | 1,296,480 | ||||||||||||
| South Korea | ||||||||||||||||
| Communication Services | 3,328,034 | 1,212,992 | — | 4,541,026 | ||||||||||||
| Consumer Discretionary | 828,216 | — | — | 828,216 | ||||||||||||
| Sweden | 156,932 | — | — | 156,932 | ||||||||||||
| Taiwan | 672,777 | — | — | 672,777 | ||||||||||||
| Thailand | 204,641 | — | — | 204,641 | ||||||||||||
| United Arab Emirates | 278,853 | — | — | 278,853 | ||||||||||||
| United States | 779,847 | — | — | 779,847 | ||||||||||||
| Uruguay | 206,883 | — | — | 206,883 | ||||||||||||
| Total Common Stock | 29,151,504 | 1,212,992 | — | 30,364,496 | ||||||||||||
| Short-Term Investment | 2,456,263 | — | — | 2,456,263 | ||||||||||||
| Total Investments in Securities | $ | 31,607,767 | $ | 1,212,992 | $ | — | $ | 32,820,759 | ||||||||
| ^ | A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets. |
| ‡‡ | Security or securities with a market value of $0. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
35
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI China Clean Technology Index ETF
| Shares | Value | |||||||
| COMMON STOCK — 99.6%‡ | ||||||||
| CHINA — 96.5% | ||||||||
| Consumer Discretionary — 34.2% | ||||||||
| BYD, Cl A | 39,600 | $ | 1,399,830 | |||||
| BYD, Cl H | 298,500 | 7,392,247 | ||||||
| Li Auto ADR* | 412,330 | 9,487,713 | ||||||
| NIO ADR* | 641,397 | 10,114,830 | ||||||
| Niu Technologies ADR* | 60,999 | 250,096 | ||||||
| Tianneng Power International | 1,349,885 | 1,179,660 | ||||||
| XPeng ADR, Cl A* | 289,538 | 3,459,979 | ||||||
| Yadea Group Holdings | 2,482,694 | 3,985,012 | ||||||
| 37,269,367 | ||||||||
| Industrials — 32.0% | ||||||||
| Beijing Easpring Material Technology, Cl A | 60,000 | 555,550 | ||||||
| Beijing-Shanghai High Speed Railway, Cl A | 4,735,100 | 3,002,132 | ||||||
| China Conch Venture Holdings | 2,909,500 | 4,640,434 | ||||||
| China Everbright Environment Group | 7,127,216 | 2,959,875 | ||||||
| Contemporary Amperex Technology, Cl A | 162,750 | 9,151,841 | ||||||
| CT Environmental Group*(A) | 329,000 | — | ||||||
| Dynagreen Environmental Protection Group, Cl H | 746,000 | 226,179 | ||||||
| Ginlong Technologies, Cl A* | 44,950 | 1,393,112 | ||||||
| Gotion High-tech, Cl A | 193,000 | 826,507 | ||||||
| Ming Yang Smart Energy Group, Cl A | 245,700 | 831,619 | ||||||
| ReneSola ADR | 72,923 | 367,532 | ||||||
| Riyue Heavy Industry, Cl A | 117,300 | 345,525 | ||||||
| Sungrow Power Supply, Cl A | 179,600 | 2,786,777 | ||||||
| Titan Wind Energy Suzhou, Cl A | 213,009 | 377,964 | ||||||
| Xinjiang Goldwind Science & Technology, Cl A | 405,335 | 644,747 | ||||||
| Xinjiang Goldwind Science & Technology, Cl H | 1,508,604 | 1,750,772 | ||||||
| Zhejiang Weiming Environment Protection, Cl A | 196,800 | 645,679 | ||||||
| Zhuzhou CRRC Times Electric, Cl H | 1,055,800 | 4,438,451 | ||||||
| 34,944,696 | ||||||||
The accompanying notes are an integral part of the financial statements.
36
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI China Clean Technology Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Information Technology — 16.4% | ||||||||
| China Railway Signal & Communication, Cl A | 823,597 | $ | 479,430 | |||||
| Chindata Group Holdings ADR* | 244,814 | 1,978,097 | ||||||
| GCL System Integration Technology, Cl A* | 702,800 | 311,516 | ||||||
| JA Solar Technology, Cl A | 271,720 | 2,440,817 | ||||||
| Kingsoft Cloud Holdings ADR* | 218,402 | 434,620 | ||||||
| LONGi Green Energy Technology, Cl A | 764,046 | 5,134,617 | ||||||
| Trina Solar, Cl A | 253,023 | 2,275,349 | ||||||
| Tuya ADR* | 400,781 | 372,606 | ||||||
| Xinyi Solar Holdings | 4,221,588 | 4,469,025 | ||||||
| 17,896,077 | ||||||||
| Real Estate — 3.2% | ||||||||
| China Evergrande Group*(A) | 7,881,000 | 1,147,380 | ||||||
| Guangzhou R&F Properties, Cl H | 3,222,400 | 545,968 | ||||||
| Shimao Group Holdings*(A) | 2,540,500 | 976,459 | ||||||
| SOHO China* | 4,013,000 | 639,021 | ||||||
| Yuzhou Group Holdings | 4,517,000 | 143,280 | ||||||
| 3,452,108 | ||||||||
| Utilities — 10.7% | ||||||||
| Beijing Enterprises Water Group | 7,958,500 | 1,835,040 | ||||||
| CECEP Solar Energy, Cl A | 465,100 | 445,584 | ||||||
| CECEP Wind-Power, Cl A | 590,700 | 364,571 | ||||||
| China Datang Renewable Power, Cl H | 4,461,000 | 1,039,966 | ||||||
| China Everbright Greentech | 1,219,000 | 232,933 | ||||||
| China Everbright Water | 1,681,857 | 281,306 | ||||||
| China Longyuan Power Group, Cl H | 3,603,800 | 4,522,023 | ||||||
| China Three Gorges Renewables Group, Cl A | 3,376,500 | 2,666,474 | ||||||
| GCL New Energy Holdings* | 24,390,000 | 267,206 | ||||||
| 11,655,103 | ||||||||
| TOTAL CHINA | 105,217,351 | |||||||
| HONG KONG — 3.1% | ||||||||
| Industrials — 0.3% | ||||||||
| China High Speed Transmission Equipment Group | 798,000 | 359,867 | ||||||
| Real Estate — 0.9% | ||||||||
| Yuexiu Real Estate Investment Trust† | 4,540,000 | 983,197 | ||||||
The accompanying notes are an integral part of the financial statements.
37
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI China Clean Technology Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Utilities — 1.9% | ||||||||
| Beijing Energy International Holding* | 15,670,000 | $ | 405,229 | |||||
| Canvest Environmental Protection Group | 946,000 | 595,325 | ||||||
| Concord New Energy Group | 12,380,000 | 1,025,109 | ||||||
| 2,025,663 | ||||||||
| TOTAL HONG KONG | 3,368,727 | |||||||
| TOTAL COMMON STOCK | ||||||||
| (Cost $164,661,293) | 108,586,078 | |||||||
| TOTAL INVESTMENTS — 99.6% | ||||||||
| (Cost $164,661,293) | 108,586,078 | |||||||
| OTHER ASSETS LESS LIABILITIES — 0.4% | 458,109 | |||||||
| NET ASSETS — 100% | $ | 109,044,187 | ||||||
| ‡ | Industries are utilized for compliance purposes, whereas sectors are utilized for reporting. |
| * | Non-income producing security. |
| † | Real Estate Investment Trust |
| (A) | Level 3 security in accordance with fair value hierarchy. |
ADR — American Depositary Receipt
Cl — Class
The following summarizes the market value of the Fund’s investments used as of September 30, 2022, based on the inputs used to value them:
| Investments in Securities | Level 1 | Level 2 | Level 3^ | Total | ||||||||||||
| Common Stock | ||||||||||||||||
| China | ||||||||||||||||
| Consumer Discretionary | $ | 37,269,367 | $ | — | $ | — | $ | 37,269,367 | ||||||||
| Industrials | 34,944,696 | — | — | ‡‡(1) | 34,944,696 | |||||||||||
| Information Technology | 17,896,077 | — | — | 17,896,077 | ||||||||||||
| Real Estate | 1,328,269 | — | 2,123,839 | (2) | 3,452,108 | |||||||||||
| Utilities | 11,655,103 | — | — | 11,655,103 | ||||||||||||
| Hong Kong | 3,368,727 | — | — | 3,368,727 | ||||||||||||
| Total Common Stock | 106,462,239 | — | 2,123,839 | 108,586,078 | ||||||||||||
| Total Investments in Securities | $ | 106,462,239 | $ | — | $ | 2,123,839 | $ | 108,586,078 | ||||||||
| ‡‡ | Security or securities with a market value of $0. |
| (1) | At September 30, 2022, this amount was fair valued using the Monthly Return of Equity Movement document from the issuer. |
| (2) | At September 30, 2022, this amount was fair valued using sector performance and news of potential restructuring proposal of debt. |
The accompanying notes are an integral part of the financial statements.
38
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI China Clean Technology Index ETF (concluded)
The following is a reconciliation of the investments in which significant unobservable inputs (Level 3) were used in determining value:
| Common Stock | ||||
| Beginning balance as of March 31, 2022 | $ | 1,681,627 | ||
| Accrued discounts/premiums | — | |||
| Realized gain/(loss) | — | |||
| Change in unrealized appreciation/(depreciation)(1) | (991,632 | ) | ||
| Purchases | — | |||
| Sales | — | |||
| Transfer into Level 3 | 1,433,844 | |||
| Transfer out of Level 3 | — | |||
| Ending balance as of September 30, 2022 | $ | 2,123,839 | ||
| (1) | Change in unrealized appreciation/(depreciation) is included on the Statement of Operations in Net Change in Unrealized Appreciation (Depreciation) on Investments. |
Transfers into Level 3 were due to the availability of observable inputs to determine fair value.
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
39
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Electric Vehicles and Future Mobility Index ETF
| Shares | Value | |||||||
| COMMON STOCK — 96.9%‡ | ||||||||
| AUSTRALIA — 9.5% | ||||||||
| Materials — 9.5% | ||||||||
| Allkem* | 456,864 | $ | 4,068,311 | |||||
| IGO | 579,753 | 5,106,708 | ||||||
| Lynas Rare Earths* | 720,111 | 3,500,247 | ||||||
| Mineral Resources | 57,608 | 2,435,320 | ||||||
| Pilbara Minerals* | 1,730,656 | 5,074,030 | ||||||
| TOTAL AUSTRALIA | 20,184,616 | |||||||
| BELGIUM — 2.3% | ||||||||
| Materials — 2.3% | ||||||||
| Umicore | 164,001 | 4,840,807 | ||||||
| TOTAL BELGIUM | 4,840,807 | |||||||
| CANADA — 4.1% | ||||||||
| Industrials — 3.1% | ||||||||
| Ballard Power Systems*(A) | 196,915 | 1,212,402 | ||||||
| Magna International | 110,274 | 5,259,092 | ||||||
| 6,471,494 | ||||||||
| Materials — 1.0% | ||||||||
| Lithium Americas* | 81,470 | 2,149,330 | ||||||
| TOTAL CANADA | 8,620,824 | |||||||
| CHINA — 33.3% | ||||||||
| Consumer Discretionary — 16.1% | ||||||||
| Brilliance China Automotive Holdings*(B) | 2,170,000 | 1,171,662 | ||||||
| BYD, Cl A | 218,100 | 7,709,668 | ||||||
| Geely Automobile Holdings | 3,183,000 | 4,387,325 | ||||||
| Guangzhou Automobile Group, Cl H | 2,216,000 | 1,580,861 | ||||||
| Li Auto, Cl A* | 429,600 | 4,958,249 | ||||||
| NIO ADR* | 525,125 | 8,281,221 | ||||||
| Shenzhen Kedali Industry, Cl A | 50,836 | 685,904 | ||||||
| XPeng, Cl A* | 652,600 | 3,824,202 | ||||||
| Yadea Group Holdings | 876,000 | 1,406,082 | ||||||
| 34,005,174 | ||||||||
The accompanying notes are an integral part of the financial statements.
40
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Electric Vehicles and Future Mobility Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Industrials — 8.4% | ||||||||
| Beijing Easpring Material Technology, Cl A | 112,100 | $ | 1,037,953 | |||||
| China Baoan Group, Cl A | 575,007 | 904,958 | ||||||
| Contemporary Amperex Technology, Cl A | 129,789 | 7,298,361 | ||||||
| Eve Energy, Cl A | 385,560 | 4,575,353 | ||||||
| Gotion High-tech, Cl A | 362,289 | 1,551,473 | ||||||
| Guangzhou Great Power Energy & Technology, Cl A | 103,100 | 1,086,367 | ||||||
| Qingdao TGOOD Electric, Cl A | 232,700 | 474,921 | ||||||
| Shenzhen Yinghe Technology, Cl A | 142,577 | 472,980 | ||||||
| Zhongshan Broad Ocean Motor, Cl A | 522,400 | 387,633 | ||||||
| 17,789,999 | ||||||||
| Materials — 8.8% | ||||||||
| CMOC Group, Cl A | 3,853,500 | 2,551,288 | ||||||
| Ganfeng Lithium Group, Cl A | 352,658 | 3,702,112 | ||||||
| GEM, Cl A | 1,058,840 | 1,096,097 | ||||||
| Guangzhou Tinci Materials Technology, Cl A | 426,294 | 2,634,608 | ||||||
| Ningbo Shanshan, Cl A | 473,800 | 1,385,681 | ||||||
| Shanghai Putailai New Energy Technology, Cl A | 306,262 | 2,397,119 | ||||||
| Tianqi Lithium, Cl H* | 80,800 | 705,079 | ||||||
| Xiamen Tungsten, Cl A | 315,151 | 1,000,381 | ||||||
| Zhejiang Huayou Cobalt, Cl A | 351,463 | 3,171,927 | ||||||
| 18,644,292 | ||||||||
| TOTAL CHINA | 70,439,465 | |||||||
| GERMANY — 3.3% | ||||||||
| Consumer Discretionary — 2.2% | ||||||||
| Mercedes-Benz Group | 46,392 | 2,379,205 | ||||||
| Volkswagen | 14,065 | 2,323,797 | ||||||
| 4,703,002 | ||||||||
| Information Technology — 1.1% | ||||||||
| Infineon Technologies | 106,005 | 2,358,390 | ||||||
| TOTAL GERMANY | 7,061,392 | |||||||
| INDONESIA — 0.7% | ||||||||
| Materials — 0.7% | ||||||||
| Aneka Tambang | 6,307,000 | 803,519 | ||||||
| Vale Indonesia* | 1,532,800 | 644,224 | ||||||
| TOTAL INDONESIA | 1,447,743 | |||||||
| JAPAN — 6.4% | ||||||||
| Consumer Discretionary — 2.6% | ||||||||
| Panasonic Holdings | 778,400 | 5,455,710 | ||||||
The accompanying notes are an integral part of the financial statements.
41
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Electric Vehicles and Future Mobility Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Industrials — 3.8% | ||||||||
| Nidec | 144,900 | $ | 8,138,706 | |||||
| TOTAL JAPAN | 13,594,416 | |||||||
| NETHERLANDS — 0.8% | ||||||||
| Industrials — 0.8% | ||||||||
| Alfen Beheer BV* | 17,231 | 1,599,924 | ||||||
| TOTAL NETHERLANDS | 1,599,924 | |||||||
| SOUTH KOREA — 8.7% | ||||||||
| Industrials — 3.5% | ||||||||
| Ecopro(A) | 36,990 | 2,277,779 | ||||||
| LG Energy Solution*(A) | 17,397 | 5,186,147 | ||||||
| 7,463,926 | ||||||||
| Information Technology — 5.0% | ||||||||
| L&F(A) | 17,518 | 2,175,822 | ||||||
| Samsung SDI | 21,711 | 8,285,599 | ||||||
| 10,461,421 | ||||||||
| Materials — 0.2% | ||||||||
| SK IE Technology*(A) | 13,743 | 503,343 | ||||||
| TOTAL SOUTH KOREA | 18,428,690 | |||||||
| SWEDEN — 0.8% | ||||||||
| Consumer Discretionary — 0.8% | ||||||||
| Volvo Car, Cl B*(A) | 392,993 | 1,725,663 | ||||||
| TOTAL SWEDEN | 1,725,663 | |||||||
| UNITED KINGDOM — 0.2% | ||||||||
| Industrials — 0.2% | ||||||||
| ITM Power* | 406,014 | 474,080 | ||||||
| TOTAL UNITED KINGDOM | 474,080 | |||||||
| UNITED STATES — 26.8% | ||||||||
| Consumer Discretionary — 15.0% | ||||||||
| Aptiv* | 105,533 | 8,253,736 | ||||||
| EVgo*(A) | 55,008 | 435,113 | ||||||
| Ford Motor | 169,969 | 1,903,653 | ||||||
| Lucid Group*(A) | 391,339 | 5,467,006 | ||||||
| Rivian Automotive, Cl A* | 192,111 | 6,322,373 | ||||||
| Tesla* | 35,122 | 9,316,111 | ||||||
| 31,697,992 | ||||||||
The accompanying notes are an integral part of the financial statements.
42
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Electric Vehicles and Future Mobility Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Industrials — 4.5% | ||||||||
| ChargePoint Holdings*(A) | 201,648 | $ | 2,976,324 | |||||
| Nikola*(A) | 211,264 | 743,649 | ||||||
| Plug Power* | 236,153 | 4,961,575 | ||||||
| Proterra*(A) | 165,114 | 822,268 | ||||||
| 9,503,816 | ||||||||
| Information Technology — 0.9% | ||||||||
| SolarEdge Technologies* | 8,579 | 1,985,695 | ||||||
| Materials — 6.4% | ||||||||
| Albemarle | 34,654 | 9,163,904 | ||||||
| Livent* | 139,579 | 4,278,096 | ||||||
| 13,442,000 | ||||||||
| TOTAL UNITED STATES | 56,629,503 | |||||||
| TOTAL COMMON STOCK | ||||||||
| (Cost $266,155,204) | 205,047,123 | |||||||
| PREFERRED STOCK — 2.7% | ||||||||
| CHILE — 2.7% | ||||||||
| Materials — 2.7% | ||||||||
| Sociedad Quimica y Minera de Chile(C) | 60,634 | 5,703,021 | ||||||
| TOTAL PREFERRED STOCK | ||||||||
| (Cost $4,023,590) | 5,703,021 | |||||||
| SHORT-TERM INVESTMENT — 8.8% | ||||||||
| Invesco Government & Agency Portfolio, Cl Institutional, 1.380%(D)(E) | 18,509,024 | 18,509,024 | ||||||
| TOTAL SHORT-TERM INVESTMENT | ||||||||
| (Cost $18,509,024) | 18,509,024 | |||||||
| TOTAL INVESTMENTS — 108.4% | ||||||||
| (Cost $288,687,818) | 229,259,168 | |||||||
| OTHER ASSETS LESS LIABILITIES — (8.4)% | (17,818,484 | ) | ||||||
| NET ASSETS — 100% | $ | 211,440,684 | ||||||
| ‡ | Industries are utilized for compliance purposes, whereas sectors are utilized for reporting. |
| * | Non-income producing security. |
| (A) | This security or a partial position of this security is on loan at September 30, 2022. The total market value of securities on loan at September 30, 2022 was $17,249,982. |
| (B) | Level 3 security in accordance with fair value hierarchy. |
| (C) | Currently, no stated interest rate. |
| (D) | The rate shown is the 7-day effective yield as of September 30, 2022. |
| (E) | This security was purchased with cash collateral held from securities on loan. The total value of such security as of September 30 was $18,509,024. |
ADR — American Depositary Receipt
Cl — Class
The accompanying notes are an integral part of the financial statements.
43
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Electric Vehicles and Future Mobility Index ETF (concluded)
The following summarizes the market value of the Fund’s investments used as of September 30, 2022, based on the inputs used to value them:
| Investments in Securities | Level 1 | Level 2 | Level 3^ | Total | ||||||||||||
| Common Stock | ||||||||||||||||
| Australia | $ | 20,184,616 | $ | — | $ | — | $ | 20,184,616 | ||||||||
| Belgium | 4,840,807 | — | — | 4,840,807 | ||||||||||||
| Canada | 8,620,824 | — | — | 8,620,824 | ||||||||||||
| China | ||||||||||||||||
| Consumer Discretionary | 32,833,512 | — | 1,171,662 | 34,005,174 | ||||||||||||
| Industrials | 17,789,999 | — | — | 17,789,999 | ||||||||||||
| Materials | 18,644,292 | — | — | 18,644,292 | ||||||||||||
| Germany | 7,061,392 | — | — | 7,061,392 | ||||||||||||
| Indonesia | 1,447,743 | — | — | 1,447,743 | ||||||||||||
| Japan | 13,594,416 | — | — | 13,594,416 | ||||||||||||
| Netherlands | 1,599,924 | — | — | 1,599,924 | ||||||||||||
| South Korea | 18,428,690 | — | — | 18,428,690 | ||||||||||||
| Sweden | 1,725,663 | — | — | 1,725,663 | ||||||||||||
| United Kingdom | 474,080 | — | — | 474,080 | ||||||||||||
| United States | 56,629,503 | — | — | 56,629,503 | ||||||||||||
| Total Common Stock | 203,875,461 | — | 1,171,662 | 205,047,123 | ||||||||||||
| Short-Term Investment | 18,509,024 | — | — | 18,509,024 | ||||||||||||
| Preferred Stock | ||||||||||||||||
| Chile | 5,703,021 | — | — | 5,703,021 | ||||||||||||
| Total Preferred Stock | 5,703,021 | — | — | 5,703,021 | ||||||||||||
| Total Investments in Securities | $ | 228,087,506 | $ | — | $ | 1,171,662 | $ | 229,259,168 | ||||||||
| ^ | A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
44
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI All China Health Care Index ETF
| Shares | Value | |||||||
| COMMON STOCK — 99.9%‡ | ||||||||
| CHINA — 96.6% | ||||||||
| Health Care — 96.6% | ||||||||
| 3SBio | 617,000 | $ | 437,800 | |||||
| Aier Eye Hospital Group, Cl A | 892,037 | 3,587,343 | ||||||
| Apeloa Pharmaceutical, Cl A | 150,292 | 346,156 | ||||||
| Asymchem Laboratories Tianjin, Cl A | 43,624 | 848,723 | ||||||
| Autobio Diagnostics, Cl A | 77,130 | 596,233 | ||||||
| BeiGene ADR* | 20,415 | 2,752,350 | ||||||
| Beijing Tiantan Biological Products, Cl A | 216,842 | 614,103 | ||||||
| Beijing Tongrentang, Cl A | 178,690 | 1,141,697 | ||||||
| Beijing Wantai Biological Pharmacy Enterprise, Cl A | 74,830 | 1,200,782 | ||||||
| Betta Pharmaceuticals, Cl A | 52,363 | 329,052 | ||||||
| BGI Genomics, Cl A | 52,727 | 394,427 | ||||||
| Bloomage Biotechnology, Cl A | 40,053 | 735,984 | ||||||
| CanSino Biologics, Cl A | 14,779 | 250,838 | ||||||
| CanSino Biologics, Cl H(A) | 41,600 | 236,090 | ||||||
| Changchun High & New Technology Industry Group, Cl A | 51,808 | 1,237,945 | ||||||
| China Medical System Holdings | 579,000 | 691,121 | ||||||
| China National Medicines, Cl A | 98,755 | 345,060 | ||||||
| China Resources Sanjiu Medical & Pharmaceutical, Cl A | 126,390 | 680,956 | ||||||
| China Traditional Chinese Medicine Holdings | 1,206,000 | 420,953 | ||||||
| Chongqing Zhifei Biological Products, Cl A | 205,049 | 2,485,904 | ||||||
| CSPC Pharmaceutical Group | 3,882,889 | 3,848,313 | ||||||
| Daan Gene, Cl A | 178,447 | 415,008 | ||||||
| Dong-E-E-Jiao, Cl A | 83,840 | 380,912 | ||||||
| Genscript Biotech* | 502,000 | 1,097,380 | ||||||
| Guangzhou Baiyunshan Pharmaceutical Holdings, Cl A | 180,440 | 657,052 | ||||||
| Guangzhou Kingmed Diagnostics Group, Cl A | 60,299 | 536,074 | ||||||
| Hangzhou Tigermed Consulting, Cl A | 47,850 | 611,989 | ||||||
| Hangzhou Tigermed Consulting, Cl H | 53,900 | 437,042 | ||||||
| Hansoh Pharmaceutical Group | 502,000 | 794,257 | ||||||
| Huadong Medicine, Cl A | 222,441 | 1,251,809 | ||||||
| Hualan Biological Engineering, Cl A | 232,347 | 591,855 | ||||||
| Humanwell Healthcare Group, Cl A | 208,500 | 512,685 | ||||||
| Hutchmed China ADR*(A) | 36,367 | 322,212 | ||||||
The accompanying notes are an integral part of the financial statements.
45
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI All China Health Care Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Health Care (continued) | ||||||||
| Hygeia Healthcare Holdings*(A) | 150,800 | $ | 851,983 | |||||
| Imeik Technology Development, Cl A | 22,900 | 1,574,988 | ||||||
| Innovent Biologics* | 440,000 | 1,370,463 | ||||||
| Intco Medical Technology, Cl A | 84,471 | 236,144 | ||||||
| Jafron Biomedical, Cl A | 102,790 | 698,998 | ||||||
| Jiangsu Hengrui Medicine, Cl A | 832,328 | 4,097,924 | ||||||
| Jiangsu Yuyue Medical Equipment & Supply, Cl A | 122,610 | 495,486 | ||||||
| Jinxin Fertility Group | 661,000 | 324,189 | ||||||
| Joincare Pharmaceutical Group Industry, Cl A | 243,345 | 359,088 | ||||||
| Joinn Laboratories China, Cl A | 58,224 | 461,519 | ||||||
| Jointown Pharmaceutical Group, Cl A | 238,706 | 383,047 | ||||||
| Lepu Medical Technology Beijing, Cl A | 223,400 | 662,133 | ||||||
| Livzon Pharmaceutical Group, Cl A | 79,459 | 335,484 | ||||||
| Meinian Onehealth Healthcare Holdings, Cl A | 497,983 | 298,267 | ||||||
| Microport Scientific | 281,400 | 484,659 | ||||||
| Nanjing King-Friend Biochemical Pharmaceutical, Cl A | 201,784 | 470,979 | ||||||
| Ovctek China, Cl A | 109,193 | 632,568 | ||||||
| Pharmaron Beijing, Cl A | 127,650 | 967,785 | ||||||
| Pharmaron Beijing, Cl H | 86,100 | 418,440 | ||||||
| Porton Pharma Solutions, Cl A | 69,600 | 454,943 | ||||||
| Shandong Buchang Pharmaceuticals, Cl A | 145,483 | 357,731 | ||||||
| Shandong Weigao Group Medical Polymer, Cl H | 1,034,000 | 1,390,978 | ||||||
| Shanghai Fosun Pharmaceutical Group, Cl A | 275,229 | 1,141,197 | ||||||
| Shanghai Fosun Pharmaceutical Group, Cl H | 212,500 | 515,421 | ||||||
| Shanghai Junshi Biosciences, Cl A* | 90,472 | 640,740 | ||||||
| Shanghai Medicilon, Cl A | 11,625 | 364,439 | ||||||
| Shanghai Pharmaceuticals Holding, Cl A | 346,494 | 802,426 | ||||||
| Shanghai Pharmaceuticals Holding, Cl H | 321,100 | 443,410 | ||||||
| Shanghai RAAS Blood Products, Cl A | 863,434 | 645,533 | ||||||
| Shenzhen Kangtai Biological Products, Cl A | 140,877 | 598,946 | ||||||
| Shenzhen Mindray Bio-Medical Electronics, Cl A | 156,355 | 6,557,604 | ||||||
| Shenzhen New Industries Biomedical Engineering, Cl A | 101,400 | 535,792 | ||||||
| Shenzhen Salubris Pharmaceuticals, Cl A | 140,365 | 481,000 | ||||||
| Shijiazhuang Yiling Pharmaceutical, Cl A | 216,250 | 658,534 | ||||||
| Sichuan Kelun Pharmaceutical, Cl A | 182,515 | 564,251 | ||||||
| Sinopharm Group, Cl H | 580,800 | 1,164,574 | ||||||
| Tasly Pharmaceutical Group, Cl A | 122,192 | 167,284 | ||||||
| Tonghua Dongbao Pharmaceutical, Cl A | 263,991 | 319,568 | ||||||
| Topchoice Medical, Cl A* | 41,341 | 742,255 | ||||||
| Walvax Biotechnology, Cl A | 205,300 | 1,068,378 | ||||||
The accompanying notes are an integral part of the financial statements.
46
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI All China Health Care Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Health Care (continued) | ||||||||
| Winning Health Technology Group, Cl A | 274,600 | $ | 271,166 | |||||
| WuXi AppTec, Cl A | 333,420 | 3,352,837 | ||||||
| WuXi AppTec, Cl H | 152,484 | 1,232,514 | ||||||
| Wuxi Biologics Cayman* | 1,093,635 | 6,603,689 | ||||||
| Yunnan Baiyao Group, Cl A | 240,123 | 1,763,245 | ||||||
| Zai Lab ADR* | 38,206 | 1,306,645 | ||||||
| Zhangzhou Pientzehuang Pharmaceutical, Cl A | 78,034 | 2,920,330 | ||||||
| Zhejiang Huahai Pharmaceutical, Cl A | 192,972 | 519,435 | ||||||
| Zhejiang Jiuzhou Pharmaceutical, Cl A | 108,200 | 594,640 | ||||||
| Zhejiang NHU, Cl A | 398,530 | 1,240,452 | ||||||
| Zhejiang Orient Gene Biotech, Cl A | 24,193 | 256,110 | ||||||
| Zhejiang Wolwo Bio-Pharmaceutical, Cl A | 67,236 | 459,579 | ||||||
| TOTAL CHINA | 86,049,895 | |||||||
| HONG KONG — 2.3% | ||||||||
| Health Care — 2.3% | ||||||||
| Sino Biopharmaceutical | 4,476,750 | 2,104,384 | ||||||
| TOTAL HONG KONG | 2,104,384 | |||||||
| UNITED STATES — 1.0% | ||||||||
| Health Care — 1.0% | ||||||||
| Legend Biotech ADR* | 21,219 | 865,735 | ||||||
| TOTAL UNITED STATES | 865,735 | |||||||
| TOTAL COMMON STOCK | ||||||||
| (Cost $143,677,877) | 89,020,014 | |||||||
| RIGHT — 0.0% | ||||||||
| CHINA — 0.0% | ||||||||
| Health Care — 0.0% | ||||||||
| Kangmei Pharma(B) | 118,157 | — | ||||||
| TOTAL CHINA | — | |||||||
| TOTAL RIGHT | ||||||||
| (Cost $—) | — | |||||||
| SHORT-TERM INVESTMENT — 1.5% | ||||||||
| Invesco Government & Agency Portfolio, Cl Institutional, 1.380%(C)(D) | 1,299,955 | 1,299,955 | ||||||
| TOTAL SHORT-TERM INVESTMENT | ||||||||
| (Cost $1,299,955) | 1,299,955 | |||||||
| TOTAL INVESTMENTS — 101.4% | ||||||||
| (Cost $144,977,832) | 90,319,969 | |||||||
| OTHER ASSETS LESS LIABILITIES — (1.4)% | (1,224,272 | ) | ||||||
| NET ASSETS — 100% | $ | 89,095,697 | ||||||
The accompanying notes are an integral part of the financial statements.
47
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI All China Health Care Index ETF (concluded)
| ‡ | Industries are utilized for compliance purposes, whereas sectors are utilized for reporting. |
| * | Non-income producing security. |
| (A) | This security or a partial position of this security is on loan at September 30, 2022. The total market value of securities on loan at September 30, 2022 was $1,236,285. |
| (B) | Level 3 security in accordance with fair value hierarchy. |
| (C) | The rate shown is the 7-day effective yield as of September 30, 2022. |
| (D) | This security was purchased with cash collateral held from securities on loan. The total value of such security as of September 30, 2022 was $1,299,955. |
ADR — American Depositary Receipt
Cl — Class
The following summarizes the market value of the Fund’s investments used as of September 30, 2022, based on the inputs used to value them:
| Investments in Securities | Level 1 | Level 2 | Level 3^ | Total | ||||||||||||
| Common Stock | ||||||||||||||||
| China | $ | 86,049,895 | $ | — | $ | — | $ | 86,049,895 | ||||||||
| Hong Kong | 2,104,384 | — | — | 2,104,384 | ||||||||||||
| United States | 865,735 | — | — | 865,735 | ||||||||||||
| Total Common Stock | 89,020,014 | — | — | 89,020,014 | ||||||||||||
| Short-Term Investment | 1,299,955 | — | — | 1,299,955 | ||||||||||||
| Right | — | — | — | ‡‡ | — | |||||||||||
| Total Investments in Securities | $ | 90,319,969 | $ | — | $ | — | $ | 90,319,969 | ||||||||
| ^ | A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets. |
| ‡‡ | Security or securities with a market value of $0. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
48
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Asia Pacific High Income Bond ETF
| Face Amount | Value | |||||||
| CORPORATE OBLIGATIONS — 86.9% | ||||||||
| AUSTRALIA — 2.9% | ||||||||
| Industrials — 2.0% | ||||||||
| North Queensland Export Terminal Pty | ||||||||
| 4.450%, 12/15/2022 | $ | 400,000 | $ | 391,013 | ||||
| Real Estate — 0.9% | ||||||||
| Scentre Group Trust 2 | ||||||||
| 4.750%, US Treas Yield Curve Rate T Note Const Mat 5 Yr + 4.379%, 09/24/2080‡(A) | 200,000 | 171,759 | ||||||
| TOTAL AUSTRALIA | 562,772 | |||||||
| CHINA — 25.6% | ||||||||
| Consumer Discretionary — 1.7% | ||||||||
| Haidilao International Holding | ||||||||
| 2.150%, 01/14/2026 | 200,000 | 164,098 | ||||||
| Health & Happiness H&H International Holdings | ||||||||
| 5.625%, 10/24/2024 | 200,000 | 159,000 | ||||||
| 323,098 | ||||||||
| Financials — 3.3% | ||||||||
| Huarong Finance 2017, MTN | ||||||||
| 4.000%, US Treas Yield Curve Rate T Note Const Mat 5 Yr + 6.983%‡(A) | 300,000 | 297,750 | ||||||
| ZhongAn Online P&C Insurance | ||||||||
| 3.125%, 07/16/2025 | 400,000 | 334,974 | ||||||
| 632,724 | ||||||||
| Materials — 2.0% | ||||||||
| China Hongqiao Group | ||||||||
| 7.375%, 05/02/2023 | 400,000 | 390,080 | ||||||
| Real Estate — 18.6% | ||||||||
| CIFI Holdings Group | ||||||||
| 6.550%, 03/28/2024 | 200,000 | 48,000 | ||||||
The accompanying notes are an integral part of the financial statements.
49
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Asia Pacific High Income Bond ETF (continued)
| Face Amount | Value | |||||||
| CORPORATE OBLIGATIONS (continued) | ||||||||
| Real Estate (continued) | ||||||||
| Country Garden Holdings | ||||||||
| 6.500%, 04/08/2024 | $ | 200,000 | $ | 72,430 | ||||
| 4.750%, 01/17/2023 | 200,000 | 154,300 | ||||||
| Gemdale Ever Prosperity Investment, MTN | ||||||||
| 4.950%, 08/12/2024 | 400,000 | 252,000 | ||||||
| Greentown China Holdings | ||||||||
| 5.650%, 07/13/2025 | 400,000 | 308,800 | ||||||
| 4.700%, 04/29/2025 | 200,000 | 158,200 | ||||||
| New Metro Global | ||||||||
| 6.800%, 08/05/2023 | 200,000 | 130,020 | ||||||
| RKPF Overseas 2019 A | ||||||||
| 7.875%, 02/01/2023 | 600,000 | 542,054 | ||||||
| Seazen Group | ||||||||
| 6.000%, 08/12/2024 | 200,000 | 85,150 | ||||||
| Shui On Development Holding | ||||||||
| 6.150%, 08/24/2024 | 200,000 | 149,828 | ||||||
| 5.750%, 11/12/2023 | 500,000 | 418,875 | ||||||
| 5.500%, 03/03/2025 | 200,000 | 131,150 | ||||||
| Wanda Properties Overseas | ||||||||
| 6.950%, 12/05/2022 | 600,000 | 565,734 | ||||||
| Yanlord Land HK | ||||||||
| 6.800%, 02/27/2024 | 431,000 | 364,863 | ||||||
| 6.750%, 04/23/2023 | 200,000 | 186,210 | ||||||
| 3,567,614 | ||||||||
| TOTAL CHINA | 4,913,516 | |||||||
| HONG KONG — 9.7% | ||||||||
| Consumer Discretionary — 2.9% | ||||||||
| Li & Fung, MTN | ||||||||
| 4.375%, 10/04/2024 | 245,000 | 222,933 | ||||||
| LS Finance 2025 | ||||||||
| 4.500%, 06/26/2025 | 200,000 | 151,684 | ||||||
| Melco Resorts Finance | ||||||||
| 4.875%, 06/06/2025 | 250,000 | 185,048 | ||||||
| 559,665 | ||||||||
| Financials — 1.9% | ||||||||
| FWD | ||||||||
| 5.500%, US Treas Yield Curve Rate T Note Const Mat 5 Yr + 3.075%‡(A) | 200,000 | 186,100 | ||||||
| FWD Group | ||||||||
| 6.375%, US Treas Yield Curve Rate T Note Const Mat 5 Yr + 4.876%‡(A) | 200,000 | 174,988 | ||||||
| 361,088 | ||||||||
The accompanying notes are an integral part of the financial statements.
50
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Asia Pacific High Income Bond ETF (continued)
| Face Amount | Value | |||||||
| CORPORATE OBLIGATIONS (continued) | ||||||||
| Health Care — 1.0% | ||||||||
| PCGI Intermediate, MTN | ||||||||
| 4.750%, 10/28/2024 | $ | 200,000 | $ | 185,984 | ||||
| Industrials — 2.9% | ||||||||
| Cathay Pacific Financing HK, MTN | ||||||||
| 4.875%, 08/17/2026 | 200,000 | 181,095 | ||||||
| Celestial Miles | ||||||||
| 5.750%, US Treas Yield Curve Rate T Note Const Mat 5 Yr + 8.205%‡(A) | 400,000 | 385,720 | ||||||
| 566,815 | ||||||||
| Real Estate — 1.0% | ||||||||
| NWD Finance BVI | ||||||||
| 6.150%, US Treas Yield Curve Rate T Note Const Mat 3 Yr + 6.201%‡(A) | 200,000 | 191,200 | ||||||
| TOTAL HONG KONG | 1,864,752 | |||||||
| INDIA — 23.2% | ||||||||
| Communication Services — 1.4% | ||||||||
| Network i2i | ||||||||
| 5.650%, US Treas Yield Curve Rate T Note Const Mat 5 Yr + 4.274%‡(A) | 300,000 | 273,900 | ||||||
| Consumer Discretionary — 0.9% | ||||||||
| TML Holdings Pte | ||||||||
| 4.350%, 06/09/2026 | 200,000 | 168,260 | ||||||
| Energy — 8.9% | ||||||||
| Adani Green Energy | ||||||||
| 4.375%, 09/08/2024 | 200,000 | 164,000 | ||||||
| Adani Green Energy UP | ||||||||
| 6.250%, 12/10/2024 | 200,000 | 181,760 | ||||||
| Azure Power Energy | ||||||||
| 3.575%, 08/19/2026 | 7,260 | 5,445 | ||||||
| Continuum Energy Levanter Pte | ||||||||
| 4.500%, 02/09/2027 | 580,500 | 470,931 | ||||||
| Greenko Solar Mauritius | ||||||||
| 5.550%, 01/29/2025 | 400,000 | 355,200 | ||||||
| HPCL-Mittal Energy | ||||||||
| 5.250%, 04/28/2027 | 400,000 | 354,200 | ||||||
| ReNew Power Pvt | ||||||||
| 5.875%, 03/05/2027 | 200,000 | 179,500 | ||||||
| 1,711,036 | ||||||||
The accompanying notes are an integral part of the financial statements.
51
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Asia Pacific High Income Bond ETF (continued)
| Face Amount | Value | |||||||
| CORPORATE OBLIGATIONS (continued) | ||||||||
| Financials — 3.4% | ||||||||
| Greenko Investment Co. | ||||||||
| 4.875%, 08/16/2023 | $ | 200,000 | $ | 190,900 | ||||
| Muthoot Finance, MTN | ||||||||
| 4.400%, 09/02/2023 | 200,000 | 194,500 | ||||||
| Shriram Transport Finance, MTN | ||||||||
| 4.150%, 07/18/2025 | 300,000 | 266,284 | ||||||
| 651,684 | ||||||||
| Industrials — 7.6% | ||||||||
| GMR Hyderabad International Airport | ||||||||
| 5.375%, 04/10/2024 | 200,000 | 193,000 | ||||||
| India Airport Infrastructure | ||||||||
| 6.250%, 10/25/2025 | 500,000 | 435,090 | ||||||
| JSW Steel | ||||||||
| 5.050%, 04/05/2032 | 200,000 | 142,345 | ||||||
| Magnum Holdings | ||||||||
| 5.375%, 10/31/2026 | 400,000 | 336,035 | ||||||
| Periama Holdings | ||||||||
| 5.950%, 04/19/2026 | 400,000 | 345,000 | ||||||
| 1,451,470 | ||||||||
| Materials — 1.0% | ||||||||
| Vedanta Resources Finance II | ||||||||
| 8.000%, 04/23/2023 | 200,000 | 185,640 | ||||||
| TOTAL INDIA | 4,441,990 | |||||||
| INDONESIA — 7.2% | ||||||||
| Energy — 4.6% | ||||||||
| Indika Energy Capital IV Pte | ||||||||
| 8.250%, 10/22/2025 | 250,000 | 233,528 | ||||||
| Medco Bell Pte | ||||||||
| 6.375%, 01/30/2027 | 400,000 | 320,791 | ||||||
| Saka Energi Indonesia | ||||||||
| 4.450%, 05/05/2024 | 200,000 | 184,002 | ||||||
| Star Energy Geothermal Wayang Windu | ||||||||
| 6.750%, 04/24/2033 | 164,540 | 149,320 | ||||||
| 887,641 | ||||||||
| Financials — 0.9% | ||||||||
| Bank Negara Indonesia Persero, MTN | ||||||||
| 3.750%, 03/30/2026 | 200,000 | 177,037 | ||||||
| Materials — 0.9% | ||||||||
| Bukit Makmur Mandiri Utama | ||||||||
| 7.750%, 02/10/2026 | 200,000 | 165,660 | ||||||
The accompanying notes are an integral part of the financial statements.
52
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Asia Pacific High Income Bond ETF (continued)
| Face Amount | Value | |||||||
| CORPORATE OBLIGATIONS (continued) | ||||||||
| Real Estate — 0.8% | ||||||||
| Theta Capital Pte | ||||||||
| 8.125%, 01/22/2025 | $ | 200,000 | $ | 155,000 | ||||
| TOTAL INDONESIA | 1,385,338 | |||||||
| JAPAN — 3.0% | ||||||||
| Communication Services — 3.0% | ||||||||
| SoftBank Group | ||||||||
| 6.000%, USD ICE Swap 11:00 NY 5 Yr + 4.226%‡(A) | 400,000 | 372,000 | ||||||
| 5.500%, 04/20/2023 | 200,000 | 196,850 | ||||||
| 568,850 | ||||||||
| TOTAL JAPAN | 568,850 | |||||||
| MACAU — 5.6% | ||||||||
| Consumer Discretionary — 5.6% | ||||||||
| MGM China Holdings | ||||||||
| 5.375%, 05/15/2024 | 200,000 | 175,382 | ||||||
| 5.250%, 06/18/2025 | 200,000 | 167,383 | ||||||
| 4.750%, 02/01/2027 | 200,000 | 155,420 | ||||||
| Sands China | ||||||||
| 5.625%, 08/08/2025 | 300,000 | 271,779 | ||||||
| Studio City | ||||||||
| 7.000%, 02/15/2027 | 200,000 | 167,109 | ||||||
| Studio City Finance | ||||||||
| 6.000%, 07/15/2025 | 250,000 | 139,361 | ||||||
| 1,076,434 | ||||||||
| TOTAL MACAU | 1,076,434 | |||||||
| PHILIPPINES — 6.0% | ||||||||
| Energy — 4.1% | ||||||||
| Petron | ||||||||
| 4.600%, US Treas Yield Curve Rate T Note Const Mat 5 Yr + 4.769%‡(A) | 645,000 | 600,172 | ||||||
| SMC Global Power Holdings | ||||||||
| 6.500%, US Treas Yield Curve Rate T Note Const Mat 5 Yr + 6.608%‡(A) | 200,000 | 181,420 | ||||||
| 781,592 | ||||||||
| Financials — 1.9% | ||||||||
| Rizal Commercial Banking | ||||||||
| 6.500%, US Treas Yield Curve Rate T Note Const Mat 5 Yr + 6.236%‡(A) | 400,000 | 365,198 | ||||||
| TOTAL PHILIPPINES | 1,146,790 | |||||||
The accompanying notes are an integral part of the financial statements.
53
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Asia Pacific High Income Bond ETF (concluded)
| Face Amount | Value | |||||||
| CORPORATE OBLIGATIONS (continued) | ||||||||
| THAILAND — 2.7% | ||||||||
| Financials — 2.7% | ||||||||
| Kasikornbank, MTN | ||||||||
| 5.275%, US Treas Yield Curve Rate T Note Const Mat 5 Yr + 4.940%‡(A) | $ | 200,000 | $ | 176,500 | ||||
| Krung Thai Bank | ||||||||
| 4.400%, US Treas Yield Curve Rate T Note Const Mat 5 Yr + 3.530%‡(A) | 200,000 | 162,240 | ||||||
| TMBThanachart Bank, MTN | ||||||||
| 4.900%, US Treas Yield Curve Rate T Note Const Mat 5 Yr + 3.256%‡(A) | 200,000 | 180,000 | ||||||
| 518,740 | ||||||||
| TOTAL THAILAND | 518,740 | |||||||
| VIETNAM — 1.0% | ||||||||
| Energy — 1.0% | ||||||||
| Mong Duong Finance Holdings BV | ||||||||
| 5.125%, 05/07/2029 | 250,000 | 195,827 | ||||||
| TOTAL CORPORATE OBLIGATIONS | ||||||||
| (Cost $18,743,368) | 16,675,009 | |||||||
| TOTAL INVESTMENTS — 86.9% | ||||||||
| (Cost $18,743,368) | 16,675,009 | |||||||
| OTHER ASSETS LESS LIABILITIES — 13.1% | 2,517,116 | |||||||
| NET ASSETS — 100% | $ | 19,192,125 | ||||||
| ‡ | Perpetual security with no stated maturity date. |
| (A) | Variable or floating rate security. The rate shown is the effective interest rate as of period end. The rates for certain securities are not based on published reference rates and spreads and are either determined by the issuer or agent based on current market conditions; by using a formula based on the rates of underlying loans; or by adjusting periodically based on prevailing interest rates. |
BVI — British Virgin Islands
ICE — Intercontinental Exchange
MTN — Medium Term Note
USD — United States Dollar
As of September 30, 2022, all of the Fund’s investments were considered Level 2 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.
The accompanying notes are an integral part of the financial statements.
54
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Emerging Markets Healthcare Index ETF
| Shares | Value | |||||||
| COMMON STOCK — 100.3%‡ | ||||||||
| BRAZIL — 6.9% | ||||||||
| Health Care — 6.9% | ||||||||
| Diagnosticos da America | 2,300 | $ | 8,020 | |||||
| Hapvida Participacoes e Investimentos | 37,804 | 52,909 | ||||||
| Hypera | 2,700 | 22,089 | ||||||
| Odontoprev | 2,580 | 4,197 | ||||||
| Rede D’Or Sao Luiz | 8,700 | 47,804 | ||||||
| TOTAL BRAZIL | 135,019 | |||||||
| CHINA — 41.8% | ||||||||
| Consumer Discretionary — 1.9% | ||||||||
| JD Health International* | 6,700 | 38,493 | ||||||
| Consumer Staples — 1.3% | ||||||||
| Anjoy Foods Group, Cl A | 700 | 15,247 | ||||||
| Sichuan Swellfun, Cl A | 1,100 | 9,677 | ||||||
| 24,924 | ||||||||
| Health Care — 38.6% | ||||||||
| 3SBio | 5,500 | 3,903 | ||||||
| Aier Eye Hospital Group, Cl A | 15,796 | 63,524 | ||||||
| Akeso* | 1,000 | 2,764 | ||||||
| Angelalign Technology | 200 | 1,920 | ||||||
| BeiGene* | 3,200 | 33,040 | ||||||
| Beijing Wantai Biological Pharmacy Enterprise, Cl A | 605 | 9,708 | ||||||
| CanSino Biologics, Cl H | 200 | 1,135 | ||||||
| Changchun High & New Technology Industry Group, Cl A | 1,000 | 23,895 | ||||||
| China Evergrande New Energy Vehicle Group*(A) | 16,000 | 4,513 | ||||||
| China Medical System Holdings | 5,000 | 5,969 | ||||||
| China Resources Double Crane Pharmaceutical, Cl A | 2,900 | 7,155 | ||||||
| China Resources Sanjiu Medical & Pharmaceutical, Cl A | 2,400 | 12,931 | ||||||
| Chongqing Zhifei Biological Products, Cl A | 4,113 | 49,864 | ||||||
| Genscript Biotech* | 4,000 | 8,744 | ||||||
| Guangzhou Kingmed Diagnostics Group, Cl A | 1,100 | 9,779 | ||||||
| Hangzhou Tigermed Consulting, Cl H | 200 | 1,622 | ||||||
| Hansoh Pharmaceutical Group | 14,000 | 22,151 | ||||||
The accompanying notes are an integral part of the financial statements.
55
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Emerging Markets Healthcare Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Health Care (continued) | ||||||||
| Huadong Medicine, Cl A | 3,940 | $ | 22,172 | |||||
| Hygeia Healthcare Holdings* | 1,200 | 6,780 | ||||||
| InnoCare Pharma* | 3,000 | 3,042 | ||||||
| Innovent Biologics* | 3,000 | 9,344 | ||||||
| Jiangsu Hengrui Medicine, Cl A | 15,259 | 75,126 | ||||||
| Jinxin Fertility Group | 5,000 | 2,452 | ||||||
| Lifetech Scientific* | 10,000 | 3,325 | ||||||
| Livzon Pharmaceutical Group, Cl H | 700 | 1,755 | ||||||
| Luye Pharma Group* | 8,000 | 2,222 | ||||||
| Microport Scientific | 3,900 | 6,717 | ||||||
| Nanjing King-Friend Biochemical Pharmaceutical, Cl A | 3,773 | 8,806 | ||||||
| Shandong Weigao Group Medical Polymer, Cl H | 10,800 | 14,529 | ||||||
| Shanghai Fosun Pharmaceutical Group, Cl H | 1,000 | 2,426 | ||||||
| Shanghai Junshi Biosciences, Cl H* | 600 | 1,907 | ||||||
| Shanghai Pharmaceuticals Holding, Cl H | 2,200 | 3,038 | ||||||
| Shenzhen Kangtai Biological Products, Cl A | 2,400 | 10,204 | ||||||
| Shenzhen Mindray Bio-Medical Electronics, Cl A | 2,100 | 88,075 | ||||||
| Shijiazhuang Yiling Pharmaceutical, Cl A | 4,400 | 13,399 | ||||||
| Sihuan Pharmaceutical Holdings Group | 21,000 | 2,033 | ||||||
| Simcere Pharmaceutical Group | 5,000 | 4,338 | ||||||
| Sinopharm Group, Cl H | 2,800 | 5,614 | ||||||
| Topchoice Medical, Cl A* | 700 | 12,568 | ||||||
| Walvax Biotechnology, Cl A | 3,800 | 19,775 | ||||||
| WuXi AppTec, Cl H | 858 | 6,935 | ||||||
| Wuxi Biologics Cayman* | 9,781 | 59,061 | ||||||
| Yunnan Baiyao Group, Cl A | 1,980 | 14,539 | ||||||
| Zai Lab* | 2,100 | 7,330 | ||||||
| Zhangzhou Pientzehuang Pharmaceutical, Cl A | 1,400 | 52,393 | ||||||
| Zhejiang Jiuzhou Pharmaceutical, Cl A | 2,000 | 10,991 | ||||||
| Zhejiang NHU, Cl A | 7,824 | 24,353 | ||||||
| 757,866 | ||||||||
| TOTAL CHINA | 821,283 | |||||||
| HUNGARY — 0.8% | ||||||||
| Health Care — 0.8% | ||||||||
| Richter Gedeon Nyrt | 881 | 15,096 | ||||||
| TOTAL HUNGARY | 15,096 | |||||||
| INDIA — 13.2% | ||||||||
| Health Care — 13.2% | ||||||||
| Apollo Hospitals Enterprise | 657 | 35,401 | ||||||
| Cipla | 3,825 | 52,423 | ||||||
| Divi’s Laboratories | 1,255 | 57,160 | ||||||
| Gland Pharma* | 726 | 18,677 | ||||||
The accompanying notes are an integral part of the financial statements.
56
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Emerging Markets Healthcare Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Health Care (continued) | ||||||||
| Sun Pharmaceutical Industries | 8,278 | $ | 96,531 | |||||
| TOTAL INDIA | 260,192 | |||||||
| INDONESIA — 3.0% | ||||||||
| Consumer Staples — 0.3% | ||||||||
| Industri Jamu Dan Farmasi Sido Muncul | 142,100 | 6,625 | ||||||
| Health Care — 2.7% | ||||||||
| Kalbe Farma | 224,700 | 27,004 | ||||||
| Medikaloka Hermina | 71,800 | 7,662 | ||||||
| Metro Healthcare Indonesia TBK* | 153,800 | 5,101 | ||||||
| Mitra Keluarga Karyasehat | 64,000 | 12,188 | ||||||
| 51,955 | ||||||||
| TOTAL INDONESIA | 58,580 | |||||||
| MALAYSIA — 3.2% | ||||||||
| Health Care — 3.2% | ||||||||
| Hartalega Holdings | 16,600 | 5,943 | ||||||
| IHH Healthcare | 41,700 | 53,058 | ||||||
| Top Glove | 38,700 | 5,216 | ||||||
| TOTAL MALAYSIA | 64,217 | |||||||
| SOUTH AFRICA — 1.4% | ||||||||
| Health Care — 1.4% | ||||||||
| Aspen Pharmacare Holdings | 2,114 | 15,795 | ||||||
| Life Healthcare Group Holdings | 7,117 | 6,831 | ||||||
| Netcare | 6,731 | 5,138 | ||||||
| TOTAL SOUTH AFRICA | 27,764 | |||||||
| SOUTH KOREA — 17.1% | ||||||||
| Health Care — 17.1% | ||||||||
| Alteogen* | 200 | 6,340 | ||||||
| Celltrion | 752 | 92,292 | ||||||
| Celltrion Healthcare | 821 | 38,903 | ||||||
| Celltrion Pharm* | 197 | 8,820 | ||||||
| Daewoong | 282 | 4,129 | ||||||
| Daewoong Pharmaceutical | 59 | 6,516 | ||||||
| Green Cross | 64 | 5,525 | ||||||
| Hanmi Pharm | 57 | 9,168 | ||||||
| Hanmi Science | 308 | 6,792 | ||||||
| Hugel | 60 | 4,286 | ||||||
| Samsung Biologics* | 158 | 89,121 | ||||||
| Seegene | 243 | 4,552 | ||||||
| Shin Poong Pharmaceutical | 247 | 3,436 | ||||||
The accompanying notes are an integral part of the financial statements.
57
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Emerging Markets Healthcare Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Health Care (continued) | ||||||||
| SillaJen*(A) | 261 | $ | 993 | |||||
| SK Biopharmaceuticals* | 371 | 14,755 | ||||||
| SK Bioscience* | 358 | 20,093 | ||||||
| ST Pharm | 96 | 5,536 | ||||||
| Yuhan | 380 | 14,426 | ||||||
| TOTAL SOUTH KOREA | 335,683 | |||||||
| THAILAND — 5.5% | ||||||||
| Health Care — 5.5% | ||||||||
| Bangkok Chain Hospital | 12,100 | 5,710 | ||||||
| Bangkok Dusit Medical Services, Cl F | 72,200 | 56,466 | ||||||
| Bumrungrad Hospital | 3,600 | 21,665 | ||||||
| Chularat Hospital, Cl F | 54,100 | 5,278 | ||||||
| Mega Lifesciences | 3,700 | 4,537 | ||||||
| Ramkhamhaeng Hospital | 5,400 | 7,766 | ||||||
| Thonburi Healthcare Group | 3,600 | 6,180 | ||||||
| TOTAL THAILAND | 107,602 | |||||||
| UNITED ARAB EMIRATES — 6.9% | ||||||||
| Industrials — 6.9% | ||||||||
| International Holding PJSC* | 1,396 | 135,303 | ||||||
| TOTAL UNITED ARAB EMIRATES | 135,303 | |||||||
| UNITED STATES — 0.5% | ||||||||
| Health Care — 0.5% | ||||||||
| Legend Biotech ADR* | 232 | 9,466 | ||||||
| TOTAL UNITED STATES | 9,466 | |||||||
| TOTAL COMMON STOCK | ||||||||
| (Cost $3,034,199) | 1,970,205 | |||||||
| RIGHT — 0.0% | ||||||||
| CHINA — 0.0% | ||||||||
| Health Care — 0.0% | ||||||||
| Kangmei Pharma(A) | 5,516 | - | ||||||
| TOTAL CHINA | - | |||||||
| TOTAL RIGHT | ||||||||
| (Cost $—) | - | |||||||
| TOTAL INVESTMENTS — 100.3% | ||||||||
| (Cost $3,034,199) | 1,970,205 | |||||||
| OTHER ASSETS LESS LIABILITIES — (0.3)% | (5,148 | ) | ||||||
| NET ASSETS — 100% | $ | 1,965,057 | ||||||
| ‡ | Industries are utilized for compliance purposes, whereas sectors are utilized for reporting. |
The accompanying notes are an integral part of the financial statements.
58
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Emerging Markets Healthcare Index ETF (concluded)
| * | Non-income producing security. |
| (A) | Level 3 security in accordance with fair value hierarchy. |
ADR — American Depositary Receipt
Cl — Class
The following summarizes the market value of the Fund’s investments used as of September 30, 2022, based on the inputs used to value them:
| Investments in Securities | Level 1 | Level 2 | Level 3^ | Total | ||||||||||||
| Common Stock | ||||||||||||||||
| Brazil | $ | 135,019 | $ | — | $ | — | $ | 135,019 | ||||||||
| China | ||||||||||||||||
| Consumer Discretionary | 38,493 | — | — | 38,493 | ||||||||||||
| Consumer Staples | 24,924 | — | — | 24,924 | ||||||||||||
| Health Care | 746,198 | 7,155 | 4,513 | 757,866 | ||||||||||||
| Hungary | 15,096 | — | — | 15,096 | ||||||||||||
| India | 260,192 | — | — | 260,192 | ||||||||||||
| Indonesia | 58,580 | — | — | 58,580 | ||||||||||||
| Malaysia | 64,217 | — | — | 64,217 | ||||||||||||
| South Africa | 27,764 | — | — | 27,764 | ||||||||||||
| South Korea | ||||||||||||||||
| Health Care | 334,690 | — | 993 | 335,683 | ||||||||||||
| Thailand | 107,602 | — | — | 107,602 | ||||||||||||
| United Arab Emirates | 135,303 | — | — | 135,303 | ||||||||||||
| United States | 9,466 | — | — | 9,466 | ||||||||||||
| Total Common Stock | 1,957,544 | 7,155 | 5,506 | 1,970,205 | ||||||||||||
| Right | — | — | — | ‡‡ | — | |||||||||||
| Total Investments in Securities | $ | 1,957,544 | $ | 7,155 | $ | 5,506 | $ | 1,970,205 | ||||||||
| ^ | A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets. |
| ‡‡ | Security or securities with a market value of $0. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
59
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI Emerging Markets ex China Index ETF
| Shares | Value | |||||||
| COMMON STOCK — 94.9%‡ | ||||||||
| BRAZIL — 5.9% | ||||||||
| Communication Services — 0.1% | ||||||||
| Telefonica Brasil | 2,400 | $ | 17,966 | |||||
| Consumer Discretionary — 0.4% | ||||||||
| Americanas | 4,320 | 13,562 | ||||||
| Lojas Renner | 3,825 | 19,695 | ||||||
| Magazine Luiza* | 19,200 | 15,903 | ||||||
| 49,160 | ||||||||
| Consumer Staples — 0.8% | ||||||||
| Ambev | 23,000 | 66,080 | ||||||
| BRF* | 5,000 | 11,907 | ||||||
| Raia Drogasil | 6,000 | 25,214 | ||||||
| 103,201 | ||||||||
| Energy — 0.9% | ||||||||
| Petroleo Brasileiro | 18,800 | 114,979 | ||||||
| Ultrapar Participacoes | 3,600 | 7,807 | ||||||
| 122,786 | ||||||||
| Financials — 1.0% | ||||||||
| B3 - Brasil Bolsa Balcao | 25,400 | 61,283 | ||||||
| Banco Bradesco | 6,488 | 19,563 | ||||||
| Banco do Brasil | 4,200 | 29,911 | ||||||
| Banco Santander Brasil | 1,800 | 10,097 | ||||||
| BB Seguridade Participacoes | 3,000 | 14,737 | ||||||
| 135,591 | ||||||||
The accompanying notes are an integral part of the financial statements.
60
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI Emerging Markets ex China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Industrials — 0.7% | ||||||||
| CCR | 4,800 | $ | 11,119 | |||||
| Localiza Rent a Car | 2,420 | 27,333 | ||||||
| Rumo | 4,800 | 16,400 | ||||||
| WEG | 7,200 | 42,783 | ||||||
| 97,635 | ||||||||
| Materials — 1.8% | ||||||||
| Klabin | 3,000 | 10,067 | ||||||
| Suzano | 3,500 | 28,795 | ||||||
| Vale | 15,900 | 211,771 | ||||||
| 250,633 | ||||||||
| Utilities — 0.2% | ||||||||
| Cia de Saneamento Basico do Estado de Sao Paulo | 1,200 | 11,004 | ||||||
| Equatorial Energia | 3,000 | 14,920 | ||||||
| 25,924 | ||||||||
| TOTAL BRAZIL | 802,896 | |||||||
| CHILE — 0.6% | ||||||||
| Consumer Discretionary — 0.0% | ||||||||
| Falabella | 3,126 | 6,298 | ||||||
| Energy — 0.1% | ||||||||
| Empresas Copec | 1,621 | 10,494 | ||||||
| Financials — 0.3% | ||||||||
| Banco de Chile | 276,436 | 24,578 | ||||||
| Banco de Credito e Inversiones | 242 | 6,213 | ||||||
| Banco Santander Chile | 275,811 | 9,738 | ||||||
| 40,529 | ||||||||
| Materials — 0.1% | ||||||||
| Empresas CMPC | 5,262 | 8,092 | ||||||
| Utilities — 0.1% | ||||||||
| Enel Americas | 118,292 | 12,595 | ||||||
| Enel Chile | 116,931 | 3,417 | ||||||
| 16,012 | ||||||||
| TOTAL CHILE | 81,425 | |||||||
| COLOMBIA — 0.1% | ||||||||
| Energy — 0.1% | ||||||||
| Ecopetrol | 20,153 | 9,098 | ||||||
| Financials — 0.0% | ||||||||
| Bancolombia | 934 | 6,323 | ||||||
| TOTAL COLOMBIA | 15,421 | |||||||
The accompanying notes are an integral part of the financial statements.
61
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI Emerging Markets ex China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| CZECH REPUBLIC — 0.2% | ||||||||
| Financials — 0.0% | ||||||||
| Komercni Banka | 304 | $ | 7,624 | |||||
| Utilities — 0.2% | ||||||||
| CEZ | 645 | 22,115 | ||||||
| TOTAL CZECH REPUBLIC | 29,739 | |||||||
| EGYPT — 0.1% | ||||||||
| Financials — 0.1% | ||||||||
| Commercial International Bank Egypt SAE | 10,982 | 14,124 | ||||||
| TOTAL EGYPT | 14,124 | |||||||
| GREECE — 0.1% | ||||||||
| Communication Services — 0.1% | ||||||||
| Hellenic Telecommunications Organization | 966 | 14,053 | ||||||
| TOTAL GREECE | 14,053 | |||||||
| HUNGARY — 0.3% | ||||||||
| Energy — 0.1% | ||||||||
| MOL Hungarian Oil & Gas | 1,501 | 8,362 | ||||||
| Financials — 0.1% | ||||||||
| OTP Bank Nyrt | 921 | 16,865 | ||||||
| Health Care — 0.1% | ||||||||
| Richter Gedeon Nyrt | 745 | 12,766 | ||||||
| TOTAL HUNGARY | 37,993 | |||||||
| INDIA — 20.4% | ||||||||
| Communication Services — 0.7% | ||||||||
| Bharti Airtel | 9,307 | 91,513 | ||||||
| Consumer Discretionary — 1.7% | ||||||||
| Bajaj Auto | 343 | 14,874 | ||||||
| Eicher Motors | 547 | 24,687 | ||||||
| Mahindra & Mahindra | 3,859 | 60,159 | ||||||
| Maruti Suzuki India | 517 | 56,104 | ||||||
| Tata Motors* | 7,558 | 37,590 | ||||||
| Titan | 1,295 | 41,499 | ||||||
| 234,913 | ||||||||
| Consumer Staples — 1.9% | ||||||||
| Dabur India | 2,183 | 15,375 | ||||||
| Godrej Consumer Products | 1,501 | 16,799 | ||||||
| Hindustan Unilever | 3,776 | 125,158 | ||||||
| ITC | 18,136 | 74,059 | ||||||
| Nestle India | 101 | 23,769 | ||||||
| 255,160 | ||||||||
The accompanying notes are an integral part of the financial statements.
62
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI Emerging Markets ex China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Energy — 2.8% | ||||||||
| Bharat Petroleum | 3,155 | $ | 11,821 | |||||
| Indian Oil | 25,230 | 20,764 | ||||||
| Oil & Natural Gas | 10,726 | 16,718 | ||||||
| Reliance Industries | 11,431 | 334,108 | ||||||
| 383,411 | ||||||||
| Financials — 5.2% | ||||||||
| Axis Bank | 11,490 | 103,556 | ||||||
| Bajaj Finance | 1,053 | 94,953 | ||||||
| Bajaj Finserv | 1,610 | 33,216 | ||||||
| Housing Development Finance | 7,645 | 214,992 | ||||||
| ICICI Bank | 19,370 | 205,245 | ||||||
| State Bank of India | 9,065 | 59,125 | ||||||
| 711,087 | ||||||||
| Health Care — 0.6% | ||||||||
| Aurobindo Pharma | 1,091 | 6,848 | ||||||
| Dr Reddy’s Laboratories | 475 | 25,315 | ||||||
| Piramal Pharma(A) | 1,340 | 4,380 | ||||||
| Sun Pharmaceutical Industries | 4,530 | 52,825 | ||||||
| 89,368 | ||||||||
| Industrials — 0.5% | ||||||||
| Larsen & Toubro | 3,002 | 68,183 | ||||||
| Information Technology — 4.6% | ||||||||
| HCL Technologies | 5,446 | 62,416 | ||||||
| Infosys ADR | 19,089 | 323,940 | ||||||
| Tata Consultancy Services | 4,530 | 167,307 | ||||||
| Tech Mahindra | 3,126 | 38,756 | ||||||
| Wipro | 7,557 | 36,623 | ||||||
| 629,042 | ||||||||
| Materials — 1.8% | ||||||||
| Asian Paints | 1,702 | 69,929 | ||||||
| Grasim Industries | 1,369 | 28,185 | ||||||
| Hindalco Industries | 8,438 | 40,509 | ||||||
| JSW Steel | 3,577 | 27,774 | ||||||
| UltraTech Cement | 487 | 37,445 | ||||||
| UPL | 2,255 | 18,629 | ||||||
| Vedanta | 5,495 | 18,241 | ||||||
| 240,712 | ||||||||
The accompanying notes are an integral part of the financial statements.
63
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI Emerging Markets ex China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Utilities — 0.6% | ||||||||
| GAIL India | 12,699 | $ | 13,589 | |||||
| NTPC | 14,678 | 28,805 | ||||||
| Power Grid Corp of India | 12,899 | 33,646 | ||||||
| 76,040 | ||||||||
| TOTAL INDIA | 2,779,429 | |||||||
| INDONESIA — 3.8% | ||||||||
| Communication Services — 0.6% | ||||||||
| Telkom Indonesia Persero | 278,000 | 81,424 | ||||||
| Consumer Discretionary — 0.4% | ||||||||
| Astra International | 120,700 | 52,513 | ||||||
| Consumer Staples — 0.2% | ||||||||
| Charoen Pokphand Indonesia | 38,000 | 14,099 | ||||||
| Unilever Indonesia | 39,200 | 12,434 | ||||||
| 26,533 | ||||||||
| Energy — 0.2% | ||||||||
| Adaro Energy Indonesia | 63,400 | 16,487 | ||||||
| United Tractors | 9,000 | 19,401 | ||||||
| 35,888 | ||||||||
| Financials — 2.4% | ||||||||
| Bank Central Asia | 262,600 | 147,446 | ||||||
| Bank Mandiri Persero | 108,600 | 67,217 | ||||||
| Bank Negara Indonesia Persero | 40,400 | 23,811 | ||||||
| Bank Rakyat Indonesia Persero | 301,700 | 88,960 | ||||||
| 327,434 | ||||||||
| TOTAL INDONESIA | 523,792 | |||||||
| MALAYSIA — 2.6% | ||||||||
| Communication Services — 0.2% | ||||||||
| DiGi.Com | 18,200 | 13,266 | ||||||
| Maxis | 18,200 | 13,777 | ||||||
| 27,043 | ||||||||
| Consumer Discretionary — 0.1% | ||||||||
| Genting | 12,000 | 11,594 | ||||||
| Consumer Staples — 0.1% | ||||||||
| Sime Darby Plantation | 13,800 | 12,172 | ||||||
| Financials — 1.5% | ||||||||
| CIMB Group Holdings | 48,400 | 53,546 | ||||||
| Hong Leong Bank | 3,000 | 13,263 | ||||||
| Malayan Banking | 33,816 | 62,571 | ||||||
| Public Bank | 78,400 | 71,518 | ||||||
| 200,898 | ||||||||
The accompanying notes are an integral part of the financial statements.
64
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI Emerging Markets ex China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Health Care — 0.1% | ||||||||
| IHH Healthcare | 12,000 | $ | 15,269 | |||||
| Materials — 0.2% | ||||||||
| Petronas Chemicals Group | 18,200 | 32,930 | ||||||
| Utilities — 0.4% | ||||||||
| Petronas Gas | 3,000 | 10,675 | ||||||
| Tenaga Nasional | 22,400 | 38,887 | ||||||
| 49,562 | ||||||||
| TOTAL MALAYSIA | 349,468 | |||||||
| MEXICO — 4.1% | ||||||||
| Communication Services — 1.0% | ||||||||
| America Movil | 149,800 | 123,893 | ||||||
| Grupo Televisa | 12,000 | 13,010 | ||||||
| Sitios Latinoamerica* | 7,490 | 3,349 | ||||||
| 140,252 | ||||||||
| Consumer Staples — 1.3% | ||||||||
| Fomento Economico Mexicano | 10,200 | 64,028 | ||||||
| Grupo Bimbo, Ser A | 6,600 | 23,295 | ||||||
| Wal-Mart de Mexico | 25,900 | 91,234 | ||||||
| 178,557 | ||||||||
| Financials — 0.7% | ||||||||
| Grupo Financiero Banorte, Cl O | 13,200 | 84,895 | ||||||
| Grupo Financiero Inbursa, Cl O* | 9,000 | 14,287 | ||||||
| 99,182 | ||||||||
| Industrials — 0.4% | ||||||||
| Grupo Aeroportuario del Pacifico, Cl B | 2,500 | 31,649 | ||||||
| Grupo Aeroportuario del Sureste, Cl B | 870 | 17,163 | ||||||
| 48,812 | ||||||||
| Materials — 0.6% | ||||||||
| Cemex* | 75,300 | 25,989 | ||||||
| Grupo Mexico | 13,800 | 46,752 | ||||||
| 72,741 | ||||||||
| Real Estate — 0.1% | ||||||||
| Fibra Uno Administracion† | 17,000 | 17,526 | ||||||
| TOTAL MEXICO | 557,070 | |||||||
| PERU — 0.6% | ||||||||
| Financials — 0.3% | ||||||||
| Credicorp | 297 | 36,472 | ||||||
| Materials — 0.3% | ||||||||
| Cia de Minas Buenaventura SAA ADR | 3,435 | 23,117 | ||||||
The accompanying notes are an integral part of the financial statements.
65
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI Emerging Markets ex China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Materials (continued) | ||||||||
| Southern Copper | 409 | $ | 18,340 | |||||
| 41,457 | ||||||||
| TOTAL PERU | 77,929 | |||||||
| PHILIPPINES — 1.1% | ||||||||
| Financials — 0.2% | ||||||||
| BDO Unibank | 12,670 | 24,097 | ||||||
| Industrials — 0.4% | ||||||||
| Ayala | 1,820 | 19,124 | ||||||
| JG Summit | 22,185 | 15,913 | ||||||
| SM Investments | 1,820 | 22,507 | ||||||
| 57,544 | ||||||||
| Real Estate — 0.5% | ||||||||
| Ayala Land | 61,900 | 24,127 | ||||||
| SM Prime | 84,600 | 43,436 | ||||||
| 67,563 | ||||||||
| Utilities — 0.0% | ||||||||
| ACEN | 9,960 | 951 | ||||||
| TOTAL PHILIPPINES | 150,155 | |||||||
| POLAND — 0.8% | ||||||||
| Communication Services — 0.1% | ||||||||
| CD Projekt | 367 | 7,446 | ||||||
| Consumer Discretionary — 0.1% | ||||||||
| LPP | 11 | 17,361 | ||||||
| Energy — 0.1% | ||||||||
| Polski Koncern Naftowy Orlen | 1,695 | 18,374 | ||||||
| Financials — 0.4% | ||||||||
| Bank Polska Kasa Opieki | 1,001 | 12,302 | ||||||
| Powszechna Kasa Oszczednosci Bank Polski | 4,989 | 22,061 | ||||||
| Powszechny Zaklad Ubezpieczen | 3,626 | 17,003 | ||||||
| Santander Bank Polska | 197 | 7,854 | ||||||
| 59,220 | ||||||||
| Materials — 0.1% | ||||||||
| KGHM Polska Miedz | 699 | 12,406 | ||||||
| TOTAL POLAND | 114,807 | |||||||
| QATAR — 1.8% | ||||||||
| Financials — 1.5% | ||||||||
| Masraf Al Rayan | 22,682 | 25,661 | ||||||
| Qatar Islamic Bank | 6,654 | 45,131 | ||||||
| Qatar National Bank | 23,579 | 128,845 | ||||||
| 199,637 | ||||||||
The accompanying notes are an integral part of the financial statements.
66
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI Emerging Markets ex China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Industrials — 0.3% | ||||||||
| Industries Qatar | 10,579 | $ | 49,093 | |||||
| TOTAL QATAR | 248,730 | |||||||
| ROMANIA — 0.1% | ||||||||
| Real Estate — 0.1% | ||||||||
| NEPI Rockcastle | 1,627 | 7,338 | ||||||
| TOTAL ROMANIA | 7,338 | |||||||
| RUSSIA — 0.0% | ||||||||
| Communication Services — 0.0% | ||||||||
| Mobile TeleSystems PJSC ADR(A)(B) | 3,839 | — | ||||||
| Consumer Discretionary — 0.0% | ||||||||
| X5 Retail Group GDR(A)(B) | 915 | — | ||||||
| Consumer Staples — 0.0% | ||||||||
| Magnit PJSC GDR(A)(B) | 2,616 | — | ||||||
| Energy — 0.0% | ||||||||
| Gazprom PJSC(A)(B) | 89,700 | — | ||||||
| LUKOIL PJSC(A)(B) | 3,729 | — | ||||||
| Novatek PJSC GDR(A)(B) | 756 | — | ||||||
| Rosneft Oil PJSC(A)(B) | 10,270 | — | ||||||
| Tatneft PJSC(A)(B) | 16,537 | — | ||||||
| — | ||||||||
| Financials — 0.0% | ||||||||
| Sberbank of Russia PJSC(A)(B) | 99,330 | — | ||||||
| Materials — 0.0% | ||||||||
| Alrosa PJSC(A)(B) | 18,910 | — | ||||||
| MMC Norilsk Nickel PJSC(A)(B) | 670 | — | ||||||
| Novolipetsk Steel PJSC(A)(B) | 8,860 | — | ||||||
| Severstal PAO(A)(B) | 1,512 | — | ||||||
| — | ||||||||
| TOTAL RUSSIA | — | |||||||
| SOUTH AFRICA — 5.7% | ||||||||
| Communication Services — 0.6% | ||||||||
| MTN Group | 8,465 | 56,463 | ||||||
| MultiChoice Group | 1,717 | 11,048 | ||||||
| Vodacom Group | 2,569 | 17,450 | ||||||
| 84,961 | ||||||||
| Consumer Discretionary — 1.5% | ||||||||
| Absa Group | 3,627 | 35,645 | ||||||
| Mr Price Group | 981 | 9,432 | ||||||
| Naspers, Cl N | 1,161 | 146,206 | ||||||
| Woolworths Holdings | 3,973 | 13,500 | ||||||
| 204,783 | ||||||||
The accompanying notes are an integral part of the financial statements.
67
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI Emerging Markets ex China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Consumer Staples — 0.6% | ||||||||
| Bid | 1,695 | $ | 26,296 | |||||
| Clicks Group | 1,019 | 16,185 | ||||||
| Shoprite Holdings | 3,232 | 39,021 | ||||||
| 81,502 | ||||||||
| Energy — 0.1% | ||||||||
| Exxaro Resources | 1,050 | 11,826 | ||||||
| Financials — 2.0% | ||||||||
| Capitec Bank | 528 | 45,624 | ||||||
| Discovery* | 3,607 | 21,059 | ||||||
| FirstRand | 22,589 | 76,342 | ||||||
| Nedbank Group | 2,286 | 25,411 | ||||||
| Old Mutual | 19,930 | 10,845 | ||||||
| Remgro | 2,142 | 15,821 | ||||||
| Sanlam | 7,347 | 21,090 | ||||||
| Standard Bank Group | 6,650 | 53,281 | ||||||
| 269,473 | ||||||||
| Industrials — 0.4% | ||||||||
| Bidvest Group | 1,357 | 14,840 | ||||||
| Sasol | 2,811 | 44,691 | ||||||
| 59,531 | ||||||||
| Materials — 0.4% | ||||||||
| Anglo American Platinum | 358 | 25,661 | ||||||
| Gold Fields | 4,044 | 33,178 | ||||||
| 58,839 | ||||||||
| Real Estate — 0.1% | ||||||||
| Growthpoint Properties† | 12,091 | 7,932 | ||||||
| TOTAL SOUTH AFRICA | 778,847 | |||||||
| SOUTH KOREA — 16.6% | ||||||||
| Communication Services — 1.2% | ||||||||
| Kakao | 1,296 | 51,724 | ||||||
| NAVER | 637 | 86,153 | ||||||
| NCSoft | 95 | 22,975 | ||||||
| 160,852 | ||||||||
| Consumer Discretionary — 1.9% | ||||||||
| Coway | 221 | 8,326 | ||||||
| Hyundai Mobis | 349 | 46,592 | ||||||
| Hyundai Motor | 759 | 93,635 | ||||||
| Kangwon Land | 493 | 8,115 | ||||||
| Kia | 1,513 | 76,036 | ||||||
| LG Electronics | 577 | 31,699 | ||||||
| 264,403 | ||||||||
The accompanying notes are an integral part of the financial statements.
68
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI Emerging Markets ex China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Consumer Staples — 0.7% | ||||||||
| Amorepacific | 216 | $ | 15,400 | |||||
| E-MART | 83 | 4,867 | ||||||
| KT&G | 851 | 51,511 | ||||||
| LG H&H | 53 | 23,449 | ||||||
| 95,227 | ||||||||
| Energy — 0.4% | ||||||||
| HD Hyundai | 185 | 6,995 | ||||||
| SK Innovation* | 323 | 32,422 | ||||||
| S-Oil | 191 | 10,814 | ||||||
| 50,231 | ||||||||
| Financials — 1.8% | ||||||||
| DB Insurance | 209 | 8,064 | ||||||
| Hana Financial Group | 1,814 | 44,948 | ||||||
| Industrial Bank of Korea | 1,055 | 7,020 | ||||||
| KB Financial Group | 2,164 | 66,098 | ||||||
| Samsung Fire & Marine Insurance | 279 | 35,882 | ||||||
| Samsung Life Insurance | 287 | 12,517 | ||||||
| Shinhan Financial Group | 2,314 | 54,183 | ||||||
| Woori Financial Group | 1,976 | 14,778 | ||||||
| 243,490 | ||||||||
| Health Care — 1.0% | ||||||||
| Celltrion | 336 | 41,255 | ||||||
| Celltrion Healthcare | 819 | 38,813 | ||||||
| Samsung Biologics* | 92 | 51,894 | ||||||
| 131,962 | ||||||||
| Industrials — 1.1% | ||||||||
| Hyundai Engineering & Construction | 329 | 8,623 | ||||||
| Korea Shipbuilding & Offshore Engineering* | 161 | 8,204 | ||||||
| LG | 660 | 34,137 | ||||||
| Samsung C&T | 590 | 42,682 | ||||||
| Samsung Heavy Industries* | 5,687 | 21,107 | ||||||
| SK Holdings | 239 | 32,074 | ||||||
| 146,827 | ||||||||
| Information Technology — 7.0% | ||||||||
| LG Display | 897 | 7,524 | ||||||
| Samsung Electro-Mechanics | 407 | 31,861 | ||||||
| Samsung Electronics | 17,632 | 654,406 | ||||||
| Samsung SDI | 275 | 104,949 | ||||||
| Samsung SDS | 143 | 11,494 | ||||||
| SK Hynix | 2,233 | 129,700 | ||||||
| SK Square* | 439 | 11,097 | ||||||
| 951,031 | ||||||||
The accompanying notes are an integral part of the financial statements.
69
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI Emerging Markets ex China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Materials — 1.3% | ||||||||
| Hyundai Steel | 329 | $ | 6,462 | |||||
| Korea Zinc | 35 | 14,556 | ||||||
| LG Chemical | 245 | 91,787 | ||||||
| Lotte Chemical | 77 | 7,750 | ||||||
| POSCO Holdings | 415 | 61,204 | ||||||
| 181,759 | ||||||||
| Utilities — 0.2% | ||||||||
| Korea Electric Power | 2,566 | 36,050 | ||||||
| TOTAL SOUTH KOREA | 2,261,832 | |||||||
| TAIWAN — 25.0% | ||||||||
| Communication Services — 1.2% | ||||||||
| Chunghwa Telecom | 24,000 | 86,176 | ||||||
| Far EasTone Telecommunications | 15,000 | 34,206 | ||||||
| Taiwan Mobile | 15,000 | 45,166 | ||||||
| 165,548 | ||||||||
| Consumer Staples — 0.8% | ||||||||
| President Chain Store | 6,000 | 53,387 | ||||||
| Uni-President Enterprises | 24,000 | 50,874 | ||||||
| 104,261 | ||||||||
| Energy — 0.1% | ||||||||
| Formosa Petrochemical | 6,000 | 15,667 | ||||||
| Financials — 6.0% | ||||||||
| Cathay Financial Holding | 36,000 | 45,299 | ||||||
| Chailease Holding | 10,152 | 58,356 | ||||||
| Chang Hwa Commercial Bank | 92,660 | 50,052 | ||||||
| China Development Financial Holding | 112,000 | 42,332 | ||||||
| CTBC Financial Holding | 72,000 | 45,016 | ||||||
| E.Sun Financial Holding | 74,910 | 60,756 | ||||||
| First Financial Holding | 76,220 | 62,418 | ||||||
| Fubon Financial Holding | 40,740 | 64,031 | ||||||
| Hua Nan Financial Holdings | 64,567 | 45,249 | ||||||
| Mega Financial Holding | 50,625 | 49,670 | ||||||
| Shanghai Commercial & Savings Bank* | 39,000 | 60,436 | ||||||
| Shin Kong Financial Holding | 184,000 | 47,581 | ||||||
| SinoPac Financial Holdings | 42,560 | 23,191 | ||||||
| Taishin Financial Holding | 132,648 | 57,239 | ||||||
| Taiwan Cooperative Financial Holding | 66,634 | 55,093 | ||||||
| Yuanta Financial Holding | 74,138 | 45,652 | ||||||
| 812,371 | ||||||||
The accompanying notes are an integral part of the financial statements.
70
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI Emerging Markets ex China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Industrials — 0.4% | ||||||||
| Far Eastern New Century | 52,000 | $ | 52,984 | |||||
| Information Technology — 14.3% | ||||||||
| ASE Technology Holding | 20,000 | 50,458 | ||||||
| Asustek Computer | 6,000 | 44,222 | ||||||
| AUO(A) | 62,000 | 28,341 | ||||||
| Catcher Technology | 6,000 | 32,600 | ||||||
| Delta Electronics | 12,000 | 95,625 | ||||||
| Hon Hai Precision Industry | 53,000 | 170,273 | ||||||
| Innolux(A) | 36,000 | 11,698 | ||||||
| Lite-On Technology | 24,000 | 48,228 | ||||||
| MediaTek | 6,000 | 104,129 | ||||||
| Novatek Microelectronics | 6,000 | 41,387 | ||||||
| Pegatron | 19,000 | 35,009 | ||||||
| Quanta Computer | 18,000 | 43,655 | ||||||
| Taiwan Semiconductor Manufacturing | 90,000 | 1,196,258 | ||||||
| United Microelectronics | 48,000 | 54,049 | ||||||
| 1,955,932 | ||||||||
| Materials — 2.2% | ||||||||
| Asia Cement | 24,000 | 29,784 | ||||||
| China Steel | 81,000 | 68,119 | ||||||
| Formosa Chemicals & Fibre | 17,000 | 37,000 | ||||||
| Formosa Plastics | 24,000 | 65,463 | ||||||
| Nan Ya Plastics | 30,000 | 63,214 | ||||||
| Taiwan Cement | 34,404 | 36,627 | ||||||
| 300,207 | ||||||||
| TOTAL TAIWAN | 3,406,970 | |||||||
| TANZANIA — 0.2% | ||||||||
| Materials — 0.2% | ||||||||
| AngloGold Ashanti | 1,995 | 27,714 | ||||||
| TOTAL TANZANIA | 27,714 | |||||||
| THAILAND — 2.6% | ||||||||
| Communication Services — 0.2% | ||||||||
| Advanced Info Service | 6,000 | 31,018 | ||||||
| Consumer Staples — 0.3% | ||||||||
| CP ALL | 30,500 | 45,483 | ||||||
| Energy — 0.7% | ||||||||
| PTT | 63,100 | 56,877 | ||||||
| PTT Exploration & Production | 8,900 | 37,870 | ||||||
| 94,747 | ||||||||
The accompanying notes are an integral part of the financial statements.
71
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI Emerging Markets ex China Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Financials — 0.4% | ||||||||
| SCB X | 19,800 | $ | 54,592 | |||||
| Health Care — 0.2% | ||||||||
| Bangkok Dusit Medical Services, Cl F | 34,000 | 26,591 | ||||||
| 26,591 | ||||||||
| Industrials — 0.4% | ||||||||
| Airports of Thailand | 26,500 | 50,934 | ||||||
| Materials — 0.3% | ||||||||
| PTT Global Chemical | 13,800 | 15,183 | ||||||
| Siam Cement | 3,200 | 27,656 | ||||||
| 42,839 | ||||||||
| Real Estate — 0.1% | ||||||||
| Central Pattana | 8,800 | 15,223 | ||||||
| 15,223 | ||||||||
| TOTAL THAILAND | 361,427 | |||||||
| TURKEY — 0.5% | ||||||||
| Consumer Staples — 0.2% | ||||||||
| BIM Birlesik Magazalar | 4,228 | 26,387 | ||||||
| Energy — 0.2% | ||||||||
| Turkiye Petrol Rafinerileri* | 1,211 | 18,918 | ||||||
| Financials — 0.1% | ||||||||
| Akbank | 30,226 | 18,408 | ||||||
| TOTAL TURKEY | 63,713 | |||||||
| UNITED ARAB EMIRATES — 1.6% | ||||||||
| Communication Services — 0.6% | ||||||||
| Emirates Telecommunications Group PJSC | 12,693 | 80,725 | ||||||
| Financials — 0.9% | ||||||||
| Abu Dhabi Commercial Bank PJSC | 12,242 | 30,063 | ||||||
| First Abu Dhabi Bank PJSC | 18,986 | 92,316 | ||||||
| 122,379 | ||||||||
| Real Estate — 0.1% | ||||||||
| Emaar Properties PJSC | 14,222 | 22,419 | ||||||
| TOTAL UNITED ARAB EMIRATES | 225,523 | |||||||
| UNITED STATES — 0.1% | ||||||||
| Consumer Staples — 0.1% | ||||||||
| JBS | 3,600 | 16,719 | ||||||
| TOTAL UNITED STATES | 16,719 | |||||||
| TOTAL COMMON STOCK | ||||||||
| (Cost $18,537,590) | 12,947,114 | |||||||
The accompanying notes are an integral part of the financial statements.
72
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI Emerging Markets ex China Index ETF (continued)
| Shares | Value | |||||||
| PREFERRED STOCK — 4.2% | ||||||||
| BRAZIL — 2.8% | ||||||||
| Energy — 0.8% | ||||||||
| Petroleo Brasileiro(C) | 20,600 | $ | 113,495 | |||||
| Financials — 1.8% | ||||||||
| Banco Bradesco(C) | 27,571 | 101,132 | ||||||
| Itau Unibanco Holding(C) | 19,600 | 101,681 | ||||||
| Itausa(B) | 22,620 | 40,691 | ||||||
| 243,504 | ||||||||
| Materials — 0.1% | ||||||||
| Gerdau(C) | 4,200 | 18,978 | ||||||
| Utilities — 0.1% | ||||||||
| Cia Energetica de Minas Gerais(C) | 5,225 | 10,394 | ||||||
| TOTAL BRAZIL | 386,371 | |||||||
| CHILE — 0.5% | ||||||||
| Materials — 0.5% | ||||||||
| Sociedad Quimica y Minera de Chile(C) | 767 | 72,142 | ||||||
| COLOMBIA — 0.1% | ||||||||
| Financials — 0.1% | ||||||||
| Bancolombia(C) | 1,857 | 11,326 | ||||||
| RUSSIA — 0.0% | ||||||||
| Energy — 0.0% | ||||||||
| Surgutneftegas PJSC(A)(B)(C) | 50,900 | — | ||||||
| SOUTH KOREA — 0.8% | ||||||||
| Information Technology — 0.8% | ||||||||
| Samsung Electronics(C) | 3,318 | 108,768 | ||||||
| TOTAL PREFERRED STOCK | ||||||||
| (Cost $665,083) | 578,607 | |||||||
| RIGHT — 0.0% | ||||||||
| BRAZIL — 0.0% | ||||||||
| Industrials — 0.0% | ||||||||
| Localiza Rent a Car, Expires 10/31/2211/07/2022 | 7 | 14 | ||||||
| TOTAL BRAZIL | 14 | |||||||
| TOTAL RIGHT | ||||||||
| (Cost $—) | 14 | |||||||
| TOTAL INVESTMENTS — 99.1% | ||||||||
| (Cost $19,202,673) | 13,525,735 | |||||||
| OTHER ASSETS LESS LIABILITIES — 0.9% | 122,093 | |||||||
| NET ASSETS — 100% | $ | 13,647,828 | ||||||
The accompanying notes are an integral part of the financial statements.
73
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI Emerging Markets ex China Index ETF (continued)
| ‡ | Industries are utilized for compliance purposes, whereas sectors are utilized for reporting. |
| * | Non-income producing security. |
| † | Real Estate Investment Trust |
| (A) | Level 3 security in accordance with fair value hierarchy. |
| (B) | Due to the financial uncertainty surrounding Russia and its markets, and the inability to liquidate the positions due to market closures and restrictions, the Russian securities have been determined to be worthless. |
| (C) | Currently, no stated interest rate. |
ADR — American Depositary Receipt
Cl — Class
GDR — Global Depositary Receipt
PJSC — Public Joint-Stock Company
Ser — Series
The following summarizes the market value of the Fund’s investments used as of September 30, 2022, based on the inputs used to value them:
| Investments in Securities | Level 1 | Level 2 | Level 3^ | Total | ||||||||||||
| Common Stock | ||||||||||||||||
| Brazil | $ | 802,896 | $ | — | $ | — | $ | 802,896 | ||||||||
| Chile | 81,425 | — | — | 81,425 | ||||||||||||
| Colombia | 15,421 | — | — | 15,421 | ||||||||||||
| Czech Republic | 29,739 | — | — | 29,739 | ||||||||||||
| Egypt | 14,124 | — | — | 14,124 | ||||||||||||
| Greece | 14,053 | — | — | 14,053 | ||||||||||||
| Hungary | 37,993 | — | — | 37,993 | ||||||||||||
| India | ||||||||||||||||
| Communication Services | 91,513 | — | — | 91,513 | ||||||||||||
| Consumer Discretionary | 234,913 | — | — | 234,913 | ||||||||||||
| Consumer Staples | 255,160 | — | — | 255,160 | ||||||||||||
| Energy | 383,411 | — | — | 383,411 | ||||||||||||
| Financials | 711,087 | — | — | 711,087 | ||||||||||||
| Health Care | 84,988 | — | 4,380 | 89,368 | ||||||||||||
| Industrials | 68,183 | — | — | 68,183 | ||||||||||||
| Information Technology | 629,042 | — | — | 629,042 | ||||||||||||
| Materials | 240,712 | — | — | 240,712 | ||||||||||||
| Utilities | 76,040 | — | — | 76,040 | ||||||||||||
| Indonesia | 523,792 | — | — | 523,792 | ||||||||||||
| Malaysia | 349,468 | — | — | 349,468 | ||||||||||||
| Mexico | 557,070 | — | — | 557,070 | ||||||||||||
| Peru | 77,929 | — | — | 77,929 | ||||||||||||
| Philippines | 150,155 | — | — | 150,155 | ||||||||||||
| Poland | 114,807 | — | — | 114,807 | ||||||||||||
| Qatar | 248,730 | — | — | 248,730 | ||||||||||||
| Romania | 7,338 | — | — | 7,338 | ||||||||||||
The accompanying notes are an integral part of the financial statements.
74
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI Emerging Markets ex China Index ETF (concluded)
| Investments in Securities | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Russia | ||||||||||||||||
| Communication Services | $ | — | $ | — | $ | — | ‡‡ | $ | — | |||||||
| Consumer Discretionary | — | — | — | ‡‡ | — | |||||||||||
| Consumer Staples | — | — | — | ‡‡ | — | |||||||||||
| Energy | — | — | — | ‡‡ | — | |||||||||||
| Financials | — | — | — | ‡‡ | — | |||||||||||
| Materials | — | — | — | ‡‡ | — | |||||||||||
| South Africa | 778,847 | — | — | 778,847 | ||||||||||||
| South Korea | 2,261,832 | — | — | 2,261,832 | ||||||||||||
| Taiwan | ||||||||||||||||
| Communication Services | 165,548 | — | — | 165,548 | ||||||||||||
| Consumer Staples | 104,261 | — | — | 104,261 | ||||||||||||
| Energy | 15,667 | — | — | 15,667 | ||||||||||||
| Financials | 812,371 | — | — | 812,371 | ||||||||||||
| Industrials | 52,984 | — | — | 52,984 | ||||||||||||
| Information Technology | 1,915,893 | — | 40,039 | 1,955,932 | ||||||||||||
| Materials | 300,207 | — | — | 300,207 | ||||||||||||
| Tanzania | 27,714 | — | — | 27,714 | ||||||||||||
| Thailand | 361,427 | — | — | 361,427 | ||||||||||||
| Turkey | 63,713 | — | — | 63,713 | ||||||||||||
| United Arab Emirates | 225,523 | — | — | 225,523 | ||||||||||||
| United States | 16,719 | — | — | 16,719 | ||||||||||||
| Total Common Stock | 12,902,695 | — | 44,419 | 12,947,114 | ||||||||||||
| Preferred Stock | ||||||||||||||||
| Brazil | 386,371 | — | — | 386,371 | ||||||||||||
| Chile | 72,142 | — | — | 72,142 | ||||||||||||
| Colombia | 11,326 | — | — | 11,326 | ||||||||||||
| Russia | ||||||||||||||||
| Energy | — | — | — | ‡‡ | — | |||||||||||
| South Korea | 108,768 | — | — | 108,768 | ||||||||||||
| Total Preferred Stock | 578,607 | — | — | 578,607 | ||||||||||||
| Right | 14 | — | — | 14 | ||||||||||||
| Total Investments in Securities | $ | 13,481,316 | $ | — | $ | 44,419 | $ | 13,525,735 | ||||||||
| ^ | A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets. |
| ‡‡ | Security or securities with a market value of $0. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
75
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI China ESG Leaders Index ETF
| Shares | Value | |||||||
| COMMON STOCK — 99.8%‡ | ||||||||
| CHINA — 98.6% | ||||||||
| Communication Services — 17.5% | ||||||||
| 37 Interactive Entertainment Network Technology Group, Cl A | 900 | $ | 2,199 | |||||
| Baidu, Cl A* | 12,400 | 180,237 | ||||||
| China Ruyi Holdings* | 32,000 | 6,848 | ||||||
| NetEase | 12,900 | 194,735 | ||||||
| Tencent Holdings | 11,200 | 380,092 | ||||||
| 764,111 | ||||||||
| Consumer Discretionary — 30.2% | ||||||||
| Alibaba Group Holding* | 37,436 | 371,742 | ||||||
| Alibaba Health Information Technology* | 12,000 | 5,503 | ||||||
| BYD, Cl A | 801 | 28,315 | ||||||
| BYD, Cl H | 6,000 | 148,588 | ||||||
| Li Auto ADR* | 4,042 | 93,006 | ||||||
| Meituan, Cl B* | 19,600 | 413,478 | ||||||
| Ping An Healthcare and Technology* | 3,700 | 6,976 | ||||||
| Pop Mart International Group | 4,000 | 7,358 | ||||||
| Tongcheng Travel Holdings* | 8,800 | 17,264 | ||||||
| Vipshop Holdings ADR* | 3,157 | 26,550 | ||||||
| XPeng ADR, Cl A* | 3,139 | 37,511 | ||||||
| Yadea Group Holdings | 8,000 | 12,841 | ||||||
| Yum China Holdings | 3,155 | 149,326 | ||||||
| 1,318,458 | ||||||||
| Consumer Staples — 4.1% | ||||||||
| Angel Yeast, Cl A | 300 | 1,750 | ||||||
| Anjoy Foods Group, Cl A | 200 | 4,356 | ||||||
The accompanying notes are an integral part of the financial statements.
76
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI China ESG Leaders Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Consumer Staples (continued) | ||||||||
| By-health, Cl A | 800 | $ | 1,975 | |||||
| China Feihe | 26,000 | 18,217 | ||||||
| China Mengniu Dairy | 23,000 | 91,269 | ||||||
| Dali Foods Group | 14,500 | 6,243 | ||||||
| Henan Shuanghui Investment & Development, Cl A | 1,500 | 5,146 | ||||||
| Inner Mongolia Yili Industrial Group, Cl A | 2,700 | 12,490 | ||||||
| Jonjee Hi-Tech Industrial And Commercial Holding, Cl A | 300 | 1,342 | ||||||
| Uni-President China Holdings | 9,000 | 7,556 | ||||||
| Want Want China Holdings | 35,000 | 22,873 | ||||||
| Yihai International Holding | 3,000 | 6,344 | ||||||
| 179,561 | ||||||||
| Energy — 0.1% | ||||||||
| China Suntien Green Energy, Cl H | 13,000 | 4,769 | ||||||
| Financials — 15.0% | ||||||||
| China Construction Bank, Cl H | 704,000 | 407,159 | ||||||
| China Merchants Bank, Cl A | 8,900 | 42,009 | ||||||
| China Merchants Bank, Cl H | 28,500 | 132,518 | ||||||
| Far East Horizon | 11,000 | 7,427 | ||||||
| Huatai Securities, Cl A | 3,200 | 5,440 | ||||||
| Huatai Securities, Cl H | 11,200 | 12,327 | ||||||
| Orient Securities, Cl A | 3,200 | 3,452 | ||||||
| Postal Savings Bank of China, Cl A | 11,600 | 7,257 | ||||||
| Postal Savings Bank of China, Cl H | 58,000 | 34,209 | ||||||
| 651,798 | ||||||||
| Health Care — 10.4% | ||||||||
| 3SBio | 10,500 | 7,450 | ||||||
| CanSino Biologics, Cl A | 58 | 984 | ||||||
| CanSino Biologics, Cl H | 800 | 4,540 | ||||||
| China Medical System Holdings | 10,000 | 11,936 | ||||||
| China Resources Sanjiu Medical & Pharmaceutical, Cl A | 400 | 2,155 | ||||||
| CSPC Pharmaceutical Group | 65,800 | 65,214 | ||||||
| Genscript Biotech* | 10,000 | 21,860 | ||||||
| Guangzhou Baiyunshan Pharmaceutical Holdings, Cl A | 700 | 2,549 | ||||||
| Guangzhou Kingmed Diagnostics Group, Cl A | 300 | 2,667 | ||||||
| Hansoh Pharmaceutical Group | 8,000 | 12,658 | ||||||
| Huadong Medicine, Cl A | 700 | 3,939 | ||||||
| Jafron Biomedical, Cl A | 300 | 2,040 | ||||||
| Jinxin Fertility Group | 11,000 | 5,395 | ||||||
| Joincare Pharmaceutical Group Industry, Cl A | 800 | 1,181 | ||||||
| Livzon Pharmaceutical Group, Cl A | 200 | 845 | ||||||
| Microport Scientific | 4,800 | 8,267 | ||||||
The accompanying notes are an integral part of the financial statements.
77
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI China ESG Leaders Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Health Care (continued) | ||||||||
| Ovctek China, Cl A | 380 | $ | 2,201 | |||||
| Pharmaron Beijing, Cl A | 350 | 2,654 | ||||||
| Pharmaron Beijing, Cl H | 1,550 | 7,533 | ||||||
| Shandong Weigao Group Medical Polymer, Cl H | 17,600 | 23,676 | ||||||
| Shanghai Fosun Pharmaceutical Group, Cl A | 900 | 3,732 | ||||||
| Shanghai Fosun Pharmaceutical Group, Cl H | 4,000 | 9,702 | ||||||
| Shanghai Pharmaceuticals Holding, Cl A | 1,200 | 2,779 | ||||||
| Shanghai Pharmaceuticals Holding, Cl H | 5,600 | 7,733 | ||||||
| Shenzhen Mindray Bio-Medical Electronics, Cl A | 500 | 20,970 | ||||||
| Sinopharm Group, Cl H | 9,600 | 19,249 | ||||||
| Topchoice Medical, Cl A* | 200 | 3,591 | ||||||
| WuXi AppTec, Cl A | 1,120 | 11,263 | ||||||
| WuXi AppTec, Cl H | 2,700 | 21,824 | ||||||
| Wuxi Biologics Cayman* | 26,000 | 156,996 | ||||||
| Yunnan Baiyao Group, Cl A | 820 | 6,021 | ||||||
| Zhejiang Jiuzhou Pharmaceutical, Cl A | 300 | 1,649 | ||||||
| 455,253 | ||||||||
| Industrials — 6.9% | ||||||||
| Air China, Cl A | 2,900 | 4,259 | ||||||
| Air China, Cl H | 14,000 | 10,701 | ||||||
| Beijing Capital International Airport, Cl H | 14,000 | 7,580 | ||||||
| Beijing Easpring Material Technology, Cl A | 300 | 2,778 | ||||||
| China Baoan Group, Cl A | 1,100 | 1,731 | ||||||
| China Communications Services, Cl H | 16,000 | 5,381 | ||||||
| China Conch Venture Holdings | 12,000 | 19,139 | ||||||
| China Eastern Airlines, Cl A | 3,900 | 2,670 | ||||||
| China Everbright Environment Group | 26,000 | 10,798 | ||||||
| China Lesso Group Holdings | 8,000 | 7,450 | ||||||
| China Southern Airlines, Cl A | 4,700 | 4,377 | ||||||
| China Southern Airlines, Cl H | 14,000 | 7,383 | ||||||
| CITIC | 42,000 | 39,593 | ||||||
| Contemporary Amperex Technology, Cl A | 1,100 | 61,856 | ||||||
| Eve Energy, Cl A | 800 | 9,493 | ||||||
| Fosun International | 18,000 | 11,167 | ||||||
| Gotion High-tech, Cl A | 800 | 3,426 | ||||||
| Jiangsu Zhongtian Technology, Cl A | 1,400 | 4,413 | ||||||
| Keda Industrial Group | 800 | 1,878 | ||||||
| Ming Yang Smart Energy Group, Cl A | 900 | 3,046 | ||||||
| SF Holding, Cl A | 2,100 | 13,909 | ||||||
The accompanying notes are an integral part of the financial statements.
78
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI China ESG Leaders Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Industrials (continued) | ||||||||
| Shanghai Construction Group, Cl A | 3,800 | $ | 1,349 | |||||
| Shanghai Electric Group, Cl A | 5,400 | 2,931 | ||||||
| Shanghai M&G Stationery, Cl A | 400 | 2,530 | ||||||
| Shenzhen Inovance Technology, Cl A | 1,150 | 9,277 | ||||||
| Shenzhen International Holdings | 9,413 | 7,195 | ||||||
| Sinotrans, Cl A | 1,900 | 946 | ||||||
| Sinotruk Hong Kong | 5,000 | 4,185 | ||||||
| Sungrow Power Supply, Cl A | 700 | 10,862 | ||||||
| Titan Wind Energy Suzhou, Cl A | 800 | 1,419 | ||||||
| Xinjiang Goldwind Science & Technology, Cl A | 1,500 | 2,386 | ||||||
| Xinjiang Goldwind Science & Technology, Cl H | 5,600 | 6,499 | ||||||
| Zhejiang Chint Electrics, Cl A | 900 | 3,381 | ||||||
| Zhejiang Expressway, Cl H | 10,000 | 6,815 | ||||||
| Zhejiang Weixing New Building Materials, Cl A | 700 | 2,023 | ||||||
| Zoomlion Heavy Industry Science and Technology, Cl A | 3,000 | 2,331 | ||||||
| Zoomlion Heavy Industry Science and Technology, Cl H | 10,200 | 3,547 | ||||||
| 300,704 | ||||||||
| Information Technology — 2.6% | ||||||||
| AAC Technologies Holdings | 5,500 | 8,604 | ||||||
| Kingdee International Software Group | 20,000 | 26,191 | ||||||
| Lenovo Group | 52,000 | 36,169 | ||||||
| Unisplendour, Cl A | 1,251 | 2,783 | ||||||
| Xinyi Solar Holdings | 38,000 | 40,227 | ||||||
| 113,974 | ||||||||
| Materials — 2.4% | ||||||||
| Baoshan Iron & Steel, Cl A | 9,800 | 7,231 | ||||||
| BBMG, Cl A | 3,600 | 1,257 | ||||||
| Chengtun Mining Group, Cl A | 1,300 | 1,183 | ||||||
| Chengxin Lithium Group, Cl A | 300 | 1,968 | ||||||
| China Jushi, Cl A | 1,786 | 3,302 | ||||||
| China Resources Cement Holdings | 16,000 | 7,419 | ||||||
| CMOC Group, Cl A | 7,800 | 5,164 | ||||||
| CMOC Group, Cl H | 27,000 | 10,559 | ||||||
| Ganfeng Lithium Group, Cl A | 640 | 6,719 | ||||||
| Ganfeng Lithium Group, Cl H | 2,480 | 16,507 | ||||||
| GEM, Cl A | 2,100 | 2,174 | ||||||
| Huaxin Cement, Cl A | 600 | 1,410 | ||||||
| Jiangsu Eastern Shenghong, Cl A | 1,800 | 4,398 | ||||||
| Kingfa Sci & Tech, Cl A | 1,100 | 1,447 | ||||||
| Shandong Nanshan Aluminum, Cl A | 5,200 | 2,196 | ||||||
| Shanghai Putailai New Energy Technology, Cl A | 600 | 4,696 | ||||||
The accompanying notes are an integral part of the financial statements.
79
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI China ESG Leaders Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Materials (continued) | ||||||||
| Sichuan Yahua Industrial Group, Cl A | 400 | $ | 1,426 | |||||
| Sinopec Shanghai Petrochemical, Cl A | 3,200 | 1,338 | ||||||
| Skshu Paint, Cl A | 240 | 2,949 | ||||||
| Suzhou TA&A Ultra Clean Technology, Cl A | 200 | 1,859 | ||||||
| Transfar Zhilian, Cl A | 1,300 | 965 | ||||||
| Youngy, Cl A* | 100 | 1,579 | ||||||
| Yunnan Energy New Material, Cl A | 400 | 9,769 | ||||||
| Yunnan Tin, Cl A | 700 | 1,210 | ||||||
| Zhejiang Huayou Cobalt, Cl A | 680 | 6,137 | ||||||
| Zhejiang Yongtai Technology, Cl A | 300 | 966 | ||||||
| 105,828 | ||||||||
| Real Estate — 5.5% | ||||||||
| A-Living Smart City Services, Cl H | 4,750 | 3,764 | ||||||
| China Overseas Land & Investment | 28,000 | 72,944 | ||||||
| China Resources Mixc Lifestyle Services | 4,800 | 18,436 | ||||||
| China Vanke, Cl A | 4,100 | 10,254 | ||||||
| China Vanke, Cl H | 12,400 | 22,589 | ||||||
| CIFI Holdings Group | 31,280 | 3,188 | ||||||
| Country Garden Services Holdings | 15,000 | 22,089 | ||||||
| Greentown Service Group | 12,000 | 8,025 | ||||||
| Hopson Development Holdings | 5,743 | 6,014 | ||||||
| Jinke Properties Group, Cl A | 2,200 | 645 | ||||||
| Longfor Group Holdings | 13,500 | 38,781 | ||||||
| Shimao Group Holdings*(A) | 12,500 | 4,804 | ||||||
| Wharf Holdings | 9,000 | 28,835 | ||||||
| 240,368 | ||||||||
| Utilities — 3.9% | ||||||||
| Beijing Enterprises Water Group | 30,000 | 6,917 | ||||||
| CECEP Solar Energy, Cl A | 1,700 | 1,629 | ||||||
| CECEP Wind-Power, Cl A | 2,200 | 1,358 | ||||||
| China Gas Holdings | 22,200 | 26,612 | ||||||
| China Resources Gas Group | 6,700 | 21,295 | ||||||
| China Three Gorges Renewables Group, Cl A | 12,700 | 10,029 | ||||||
| ENN Energy Holdings | 5,800 | 77,581 | ||||||
| ENN Natural Gas, Cl A | 1,000 | 2,603 | ||||||
| Kunlun Energy | 28,000 | 20,225 | ||||||
| 168,249 | ||||||||
| TOTAL CHINA | 4,303,073 | |||||||
The accompanying notes are an integral part of the financial statements.
80
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI China ESG Leaders Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| HONG KONG — 0.9% | ||||||||
| Consumer Staples — 0.1% | ||||||||
| Vinda International Holdings | 2,000 | $ | 4,708 | |||||
| Health Care — 0.8% | ||||||||
| Sino Biopharmaceutical | 76,000 | 35,725 | ||||||
| TOTAL HONG KONG | 40,433 | |||||||
| SINGAPORE — 0.3% | ||||||||
| Industrials — 0.3% | ||||||||
| BOC Aviation | 1,500 | 10,653 | ||||||
| TOTAL SINGAPORE | 10,653 | |||||||
| TOTAL COMMON STOCK | ||||||||
| (Cost $6,439,585) | 4,354,159 | |||||||
| TOTAL INVESTMENTS — 99.8% | ||||||||
| (Cost $6,439,585) | 4,354,159 | |||||||
| OTHER ASSETS LESS LIABILITIES — 0.2% | 10,340 | |||||||
| NET ASSETS — 100% | $ | 4,364,499 | ||||||
| ‡ | Industries are utilized for compliance purposes, whereas sectors are utilized for reporting. |
| * | Non-income producing security. |
| (A) | Level 3 security in accordance with fair value hierarchy. |
ADR — American Depositary Receipt
Cl — Class
The accompanying notes are an integral part of the financial statements.
81
Schedule of Investments (Unaudited) September 30, 2022
KraneShares MSCI China ESG Leaders Index ETF (concluded)
The following summarizes the market value of the Fund’s investments used as of September 30, 2022, based on the inputs used to value them:
| Investments in Securities | Level 1 | Level 2 | Level 3^ | Total | ||||||||||||
| Common Stock | ||||||||||||||||
| China | ||||||||||||||||
| Communication Services | $ | 764,111 | $ | — | $ | — | $ | 764,111 | ||||||||
| Consumer Discretionary | 1,318,458 | — | — | 1,318,458 | ||||||||||||
| Consumer Staples | 179,561 | — | — | 179,561 | ||||||||||||
| Energy | 4,769 | — | — | 4,769 | ||||||||||||
| Financials | 651,798 | — | — | 651,798 | ||||||||||||
| Health Care | 455,253 | — | — | 455,253 | ||||||||||||
| Industrials | 300,704 | — | — | 300,704 | ||||||||||||
| Information Technology | 113,974 | — | — | 113,974 | ||||||||||||
| Materials | 105,828 | — | — | 105,828 | ||||||||||||
| Real Estate | 235,564 | — | 4,804 | 240,368 | ||||||||||||
| Utilities | 168,249 | — | — | 168,249 | ||||||||||||
| Hong Kong | 40,433 | — | — | 40,433 | ||||||||||||
| Singapore | 10,653 | — | — | 10,653 | ||||||||||||
| Total Common Stock | 4,349,355 | — | 4,804 | 4,354,159 | ||||||||||||
| Total Investments in Securities | $ | 4,349,355 | $ | — | $ | 4,804 | $ | 4,354,159 | ||||||||
| ^ | A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
82
Schedule of Investments (Unaudited) September 30, 2022
KraneShares CICC China 5G & Semiconductor Index ETF
| Shares | Value | |||||||
| COMMON STOCK — 99.9%‡ | ||||||||
| CHINA — 99.9% | ||||||||
| Industrials — 5.6% | ||||||||
| Ginlong Technologies, Cl A* | 12,400 | $ | 384,306 | |||||
| Suzhou Maxwell Technologies, Cl A | 5,300 | 359,789 | ||||||
| 744,095 | ||||||||
| Information Technology — 94.3% | ||||||||
| Advanced Micro-Fabrication Equipment China, Cl A* | 22,574 | 341,564 | ||||||
| Avary Holding Shenzhen, Cl A | 86,785 | 315,409 | ||||||
| BOE Technology Group, Cl A | 1,384,930 | 635,240 | ||||||
| Chaozhou Three-Circle Group, Cl A | 69,164 | 252,629 | ||||||
| China Resources Microelectronics, Cl A | 47,718 | 318,738 | ||||||
| China Zhenhua Group Science & Technology, Cl A | 15,900 | 258,668 | ||||||
| Foxconn Industrial Internet, Cl A | 707,474 | 845,498 | ||||||
| GigaDevice Semiconductor, Cl A | 26,200 | 344,536 | ||||||
| GoerTek, Cl A | 135,822 | 504,868 | ||||||
| Hangzhou Silan Microelectronics, Cl A | 56,600 | 254,453 | ||||||
| Hua Hong Semiconductor | 53,000 | 121,260 | ||||||
| Luxshare Precision Industry, Cl A | 285,605 | 1,177,810 | ||||||
| Maxscend Microelectronics, Cl A | 18,769 | 232,756 | ||||||
| Montage Technology, Cl A | 39,446 | 289,545 | ||||||
| National Silicon Industry Group, Cl A* | 100,499 | 251,630 | ||||||
| NAURA Technology Group, Cl A | 17,218 | 672,379 | ||||||
| SG Micro, Cl A | 13,500 | 266,794 | ||||||
| Shenzhen Transsion Holdings, Cl A | 30,605 | 249,677 | ||||||
| StarPower Semiconductor, Cl A | 6,729 | 305,814 | ||||||
| Sunny Optical Technology Group | 49,700 | 475,797 | ||||||
| TCL Zhonghuan Renewable Energy Technology, Cl A | 115,500 | 725,161 | ||||||
| Unigroup Guoxin Microelectronics, Cl A | 29,400 | 593,842 | ||||||
| Will Semiconductor Shanghai, Cl A | 44,106 | 495,740 | ||||||
| Wingtech Technology, Cl A | 53,655 | 358,771 | ||||||
| Xiaomi, Cl B* | 816,000 | 931,395 | ||||||
The accompanying notes are an integral part of the financial statements.
83
Schedule of Investments (Unaudited) September 30, 2022
KraneShares CICC China 5G & Semiconductor Index ETF (concluded)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Information Technology (continued) | ||||||||
| Yealink Network Technology, Cl A | 33,580 | $ | 296,745 | |||||
| Zhejiang Jingsheng Mechanical & Electrical, Cl A | 47,320 | 448,830 | ||||||
| ZTE, Cl H | 271,800 | 487,515 | ||||||
| 12,453,064 | ||||||||
| TOTAL CHINA | 13,197,159 | |||||||
| TOTAL COMMON STOCK | ||||||||
| (Cost $19,259,025) | 13,197,159 | |||||||
| TOTAL INVESTMENTS — 99.9% | ||||||||
| (Cost $19,259,025) | 13,197,159 | |||||||
| OTHER ASSETS LESS LIABILITIES — 0.1% | 13,153 | |||||||
| NET ASSETS — 100% | $ | 13,210,312 | ||||||
| ‡ | Industries are utilized for compliance purposes, whereas sectors are utilized for reporting. |
| * | Non-income producing security. |
Cl — Class
As of September 30, 2022, all of the Fund’s investments were considered Level 1 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.
The accompanying notes are an integral part of the financial statements.
84
Schedule of Investments (Unaudited) September 30, 2022
KraneShares CICC China Consumer Leaders Index ETF
| Shares | Value | |||||||
| COMMON STOCK — 100.1%‡ | ||||||||
| CHINA — 98.1% | ||||||||
| Consumer Discretionary — 35.3% | ||||||||
| ANTA Sports Products | 29,800 | $ | 315,846 | |||||
| Bosideng International Holdings | 96,000 | 47,573 | ||||||
| Ecovacs Robotics, Cl A | 4,400 | 41,166 | ||||||
| Gree Electric Appliances of Zhuhai, Cl A | 72,700 | 330,707 | ||||||
| Haidilao International Holding | 26,000 | 51,007 | ||||||
| Haier Smart Home, Cl A | 94,800 | 329,380 | ||||||
| Li Ning | 41,500 | 317,730 | ||||||
| Midea Group, Cl A | 83,365 | 576,608 | ||||||
| Oppein Home Group, Cl A | 4,100 | 65,338 | ||||||
| Shanghai Jinjiang International Hotels, Cl A | 14,600 | 118,063 | ||||||
| Shenzhen Overseas Chinese Town, Cl A | 98,200 | 66,255 | ||||||
| Yum China Holdings | 7,050 | 337,327 | ||||||
| 2,597,000 | ||||||||
| Consumer Staples — 62.0% | ||||||||
| China Mengniu Dairy | 82,000 | 325,393 | ||||||
| China Resources Beer Holdings | 40,000 | 278,475 | ||||||
| Chongqing Brewery, Cl A | 4,336 | 68,241 | ||||||
| Eastroc Beverage Group, Cl A | 1,900 | 37,812 | ||||||
| Foshan Haitian Flavouring & Food, Cl A | 28,656 | 332,899 | ||||||
| Henan Shuanghui Investment & Development, Cl A | 26,835 | 92,070 | ||||||
| Hengan International Group | 17,000 | 76,014 | ||||||
| Inner Mongolia Yili Industrial Group, Cl A | 112,200 | 519,046 | ||||||
| Jiangsu Yanghe Brewery JSC, Cl A | 12,917 | 286,545 | ||||||
| Kweichow Moutai, Cl A | 2,900 | 761,697 | ||||||
| Luzhou Laojiao, Cl A | 13,800 | 446,492 | ||||||
| Proya Cosmetics, Cl A | 3,200 | 73,133 | ||||||
| Shanghai Flyco Electrical Appliance, Cl A | 9,017 | 99,275 | ||||||
| Shanxi Xinghuacun Fen Wine Factory, Cl A | 7,800 | 331,392 | ||||||
| Tsingtao Brewery, Cl H | 16,000 | 151,747 | ||||||
| Wuliangye Yibin, Cl A | 28,300 | 671,778 | ||||||
| 4,552,009 | ||||||||
The accompanying notes are an integral part of the financial statements.
85
Schedule of Investments (Unaudited) September 30, 2022
KraneShares CICC China Consumer Leaders Index ETF (concluded)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Real Estate — 0.8% | ||||||||
| Youngor Group, Cl A | 68,100 | $ | 60,371 | |||||
| TOTAL CHINA | 7,209,380 | |||||||
| HONG KONG — 2.0% | ||||||||
| Consumer Staples — 2.0% | ||||||||
| WH Group | 229,500 | 144,718 | ||||||
| TOTAL HONG KONG | 144,718 | |||||||
| TOTAL COMMON STOCK | ||||||||
| (Cost $8,054,317) | 7,354,098 | |||||||
| TOTAL INVESTMENTS — 100.1% | ||||||||
| (Cost $8,054,317) | 7,354,098 | |||||||
| OTHER ASSETS LESS LIABILITIES — (0.1)% | (5,071 | ) | ||||||
| NET ASSETS — 100% | $ | 7,349,027 | ||||||
| ‡ | Industries are utilized for compliance purposes, whereas sectors are utilized for reporting. |
| * | Non-income producing security. |
Cl — Class
JSC — Joint-Stock Company
As of September 30, 2022, all of the Fund’s investments were considered Level 1 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.
The accompanying notes are an integral part of the financial statements.
86
Schedule of Investments (Unaudited) September 30, 2022
KraneShares SSE STAR Market 50 Index ETF
| Shares | Value | |||||||
| COMMON STOCK — 99.3%‡ | ||||||||
| CHINA — 99.3% | ||||||||
| Consumer Discretionary — 5.2% | ||||||||
| Autel Intelligent Technology, Cl A | 117,915 | $ | 466,920 | |||||
| Beijing Roborock Technology, Cl A | 20,380 | 738,020 | ||||||
| Ninebot* | 155,828 | 837,375 | ||||||
| Tianneng Battery Group, Cl A | 55,074 | 254,158 | ||||||
| 2,296,473 | ||||||||
| Health Care — 12.3% | ||||||||
| Bloomage Biotechnology, Cl A | 41,932 | 770,511 | ||||||
| CanSino Biologics, Cl A | 30,013 | 509,398 | ||||||
| Changchun BCHT Biotechnology, Cl A | 16,193 | 130,604 | ||||||
| iRay Technology, Cl A | 15,808 | 1,156,805 | ||||||
| Micro-Tech Nanjing, Cl A | 32,641 | 347,966 | ||||||
| Nanjing Vazyme Biotech, Cl A | 15,689 | 136,046 | ||||||
| Qingdao Haier Biomedical, Cl A | 82,909 | 724,290 | ||||||
| Shanghai Junshi Biosciences, Cl A* | 150,672 | 1,067,088 | ||||||
| Shanghai Medicilon, Cl A | 18,939 | 593,747 | ||||||
| 5,436,455 | ||||||||
| Industrials — 16.1% | ||||||||
| Guangdong Jia Yuan Technology Shares, Cl A | 71,445 | 522,723 | ||||||
| Hoymiles Power Electronics, Cl A | 7,322 | 1,128,000 | ||||||
| Jiangsu GoodWe Power Supply Technology, Cl A | 26,846 | 1,065,812 | ||||||
| Ningbo Ronbay New Energy Technology, Cl A | 117,155 | 1,382,857 | ||||||
| Pylon Technologies, Cl A | 33,741 | 1,893,129 | ||||||
| Zhejiang HangKe Technology, Cl A | 52,916 | 371,050 | ||||||
| Zhuhai CosMX Battery, Cl A | 48,891 | 153,274 | ||||||
| Zhuzhou CRRC Times Electric, Cl A | 75,735 | 575,782 | ||||||
| 7,092,627 | ||||||||
The accompanying notes are an integral part of the financial statements.
87
Schedule of Investments (Unaudited) September 30, 2022
KraneShares SSE STAR Market 50 Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Information Technology — 55.9% | ||||||||
| 3peak, Cl A | 26,051 | $ | 852,336 | |||||
| ACM Research Shanghai, Cl A* | 15,116 | 220,766 | ||||||
| Advanced Micro-Fabrication Equipment China, Cl A* | 161,138 | 2,438,152 | ||||||
| Amlogic Shanghai, Cl A* | 107,501 | 979,989 | ||||||
| ASR Microelectronics, Cl A* | 16,407 | 146,231 | ||||||
| Beijing Kingsoft Office Software, Cl A | 80,363 | 2,267,003 | ||||||
| Bestechnic Shanghai, Cl A | 31,378 | 418,614 | ||||||
| Cambricon Technologies, Cl A* | 87,339 | 767,891 | ||||||
| China Railway Signal & Communication, Cl A | 1,127,131 | 656,122 | ||||||
| China Resources Microelectronics, Cl A | 230,122 | 1,537,127 | ||||||
| Everdisplay Optronics Shanghai, Cl A* | 1,210,641 | 434,728 | ||||||
| GalaxyCore, Cl A* | 87,123 | 194,309 | ||||||
| Jinko Solar, Cl A | 610,130 | 1,426,659 | ||||||
| Montage Technology, Cl A | 197,477 | 1,449,538 | ||||||
| National Silicon Industry Group, Cl A* | 474,210 | 1,187,329 | ||||||
| Qi An Xin Technology Group, Cl A* | 118,903 | 718,507 | ||||||
| Raytron Technology, Cl A | 116,628 | 621,981 | ||||||
| Shanghai Friendess Electronic Technology, Cl A | 19,036 | 506,007 | ||||||
| Shenzhen Transsion Holdings, Cl A | 104,815 | 855,087 | ||||||
| Trina Solar, Cl A | 472,325 | 4,247,457 | ||||||
| Verisilicon Microelectronics Shanghai, Cl A* | 108,056 | 666,147 | ||||||
| Xinjiang Daqo New Energy, Cl A | 93,149 | 638,009 | ||||||
| Zhejiang Supcon Technology, Cl A | 129,911 | 1,423,542 | ||||||
| 24,653,531 | ||||||||
| Materials — 9.8% | ||||||||
| Cathay Biotech, Cl A | 76,245 | 643,825 | ||||||
| Hunan Changyuan Lico, Cl A | 168,152 | 351,439 | ||||||
| Jiangsu Cnano Technology, Cl A | 80,966 | 1,307,990 | ||||||
| Suzhou Nanomicro Technology, Cl A | 17,439 | 173,873 | ||||||
| Western Superconducting Technologies, Cl A | 121,341 | 1,819,311 | ||||||
| 4,296,438 | ||||||||
| TOTAL CHINA | 43,775,524 | |||||||
| TOTAL COMMON STOCK | ||||||||
| (Cost $62,375,273) | 43,775,524 | |||||||
| TOTAL INVESTMENTS — 99.3% | ||||||||
| (Cost $62,375,273) | 43,775,524 | |||||||
| OTHER ASSETS LESS LIABILITIES — 0.7% | 305,964 | |||||||
| NET ASSETS — 100% | $ | 44,081,488 | ||||||
The accompanying notes are an integral part of the financial statements.
88
Schedule of Investments (Unaudited) September 30, 2022
KraneShares SSE STAR Market 50 Index ETF (concluded)
| ‡ | Industries are utilized for compliance purposes, whereas sectors are utilized for reporting. |
| * | Non-income producing security. |
Cl — Class
GDR — Global Depositary Receipt
As of September 30, 2022, all of the Fund’s investments were considered Level 1 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.
The accompanying notes are an integral part of the financial statements.
89
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Hang Seng TECH Index ETF
| Shares | Value | |||||||
| COMMON STOCK — 100.0%‡ | ||||||||
| CHINA — 100.0% | ||||||||
| Communication Services — 32.4% | ||||||||
| Baidu, Cl A* | 38,550 | $ | 560,333 | |||||
| Bilibili, Cl Z* | 8,460 | 128,895 | ||||||
| China Literature* | 29,600 | 83,899 | ||||||
| Kingsoft | 58,600 | 156,020 | ||||||
| Kuaishou Technology, Cl B* | 120,400 | 781,460 | ||||||
| NetEase | 45,305 | 683,912 | ||||||
| Tencent Holdings | 24,800 | 841,631 | ||||||
| 3,236,150 | ||||||||
| Consumer Discretionary — 43.2% | ||||||||
| Alibaba Group Holding* | 87,600 | 869,874 | ||||||
| Alibaba Health Information Technology* | 344,000 | 157,760 | ||||||
| Haier Smart Home, Cl H | 148,226 | 454,125 | ||||||
| JD Health International* | 71,650 | 411,650 | ||||||
| JD.com, Cl A* | 33,010 | 835,130 | ||||||
| Li Auto, Cl A* | 25,200 | 290,847 | ||||||
| Meituan, Cl B* | 45,100 | 951,421 | ||||||
| NIO, Cl A* | 2,560 | 39,591 | ||||||
| Ping An Healthcare and Technology* | 32,100 | 60,521 | ||||||
| Trip.com Group* | 6,000 | 161,123 | ||||||
| XPeng, Cl A* | 13,700 | 80,281 | ||||||
| 4,312,323 | ||||||||
| Financials — 1.2% | ||||||||
| ZhongAn Online P&C Insurance, Cl H* | 52,600 | 117,933 | ||||||
| Information Technology — 23.2% | ||||||||
| AAC Technologies Holdings* | 45,000 | 70,396 | ||||||
| BYD Electronic International | 47,000 | 113,520 | ||||||
| GDS Holdings, Cl A* | 20,100 | 44,041 | ||||||
| Hua Hong Semiconductor* | 38,000 | 86,941 | ||||||
| Kingdee International Software Group* | 176,000 | 230,485 | ||||||
| Lenovo Group | 462,000 | 321,344 | ||||||
| Ming Yuan Cloud Group Holdings | 64,000 | 37,911 | ||||||
The
accompanying notes are an integral part of the financial
statements.
90
Schedule of Investments (Unaudited) September 30, 2022
KraneShares Hang Seng TECH Index ETF (concluded)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Information Technology (continued) | ||||||||
| SenseTime Group, Cl B* | 823,000 | $ | 167,747 | |||||
| Sunny Optical Technology Group | 45,940 | 439,801 | ||||||
| Xiaomi, Cl B* | 709,800 | 810,177 | ||||||
| 2,322,363 | ||||||||
| TOTAL CHINA | 9,988,769 | |||||||
| TOTAL COMMON STOCK | ||||||||
| (Cost $13,817,338) | 9,988,769 | |||||||
| TOTAL INVESTMENTS — 100.0% | ||||||||
| (Cost $13,817,338) | 9,988,769 | |||||||
| OTHER ASSETS LESS LIABILITIES — 0.0% | (330 | ) | ||||||
| NET ASSETS — 100% | $ | 9,988,439 | ||||||
| ‡ | Industries are utilized for compliance purposes, whereas sectors are utilized for reporting. |
| * | Non-income producing security. |
Cl — Class
As of September 30, 2022, all of the Fund’s investments were considered Level 1 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.
The accompanying notes are an integral part of the financial statements.
91
Schedule of Investments (Unaudited) September 30, 2022
KraneShares China Innovation ETF
| Shares | Value | |||||||
| EXCHANGE — TRADED FUNDS — 99.9% | ||||||||
| KraneShares CICC China 5G and Semiconductor Index ETF*† | 15,109 | $ | 220,511 | |||||
| KraneShares CSI China Internet ETF*† | 18,816 | 463,626 | ||||||
| KraneShares MSCI All China Health Care Index ETF*† | 20,884 | 370,065 | ||||||
| KraneShares MSCI China Clean Technology Index ETF† | 10,046 | 284,704 | ||||||
| KraneShares SSE STAR Market 50 Index ETF*† | 11,005 | 157,474 | ||||||
| TOTAL EXCHANGE — TRADED FUNDS | ||||||||
| (Cost $2,594,483) | 1,496,380 | |||||||
| TOTAL INVESTMENTS — 99.9% | ||||||||
| (Cost $2,594,483) | 1,496,380 | |||||||
| OTHER ASSETS LESS LIABILITIES — 0.1% | 1,514 | |||||||
| NET ASSETS — 100% | $ | 1,497,894 | ||||||
| * | Non-income producing security. |
| † | Affiliated Investment. |
As of September 30, 2022, all of the Fund’s investments were considered Level 1 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.
Transactions with affiliated companies during the period ended September 30, 2022 are as follows:
| Value as
of 3/31/2022 |
Purchases
at Cost |
Proceeds
from Sale |
Change
in Unrealized Appreciation (Depreciation) |
Realized Gain/(Loss) |
Value as
of 9/30/2022 |
Balance
of Shares Held as of 9/30/2022 |
Dividend Income |
Capital Gain Distributions |
||||||||||||||||||||||||||
| KraneShares CICC China 5G and Semiconductor Index ETF | ||||||||||||||||||||||||||||||||||
| $ | 433,558 | $ | 16,145 | $ | (151,279 | ) | $ | (71,051 | ) | $ | (6,862 | ) | $ | 220,511 | 15,109 | $ | — | $ | — | |||||||||||||||
| KraneShares CSI China Internet ETF | ||||||||||||||||||||||||||||||||||
| 759,535 | 9,011 | (272,939 | ) | (51,064 | ) | 19,083 | 463,626 | 18,816 | — | — | ||||||||||||||||||||||||
| KraneShares MSCI All China Health Care Index ETF | ||||||||||||||||||||||||||||||||||
| 696,488 | 9,033 | (218,222 | ) | (100,593 | ) | (16,641 | ) | 370,065 | 20,884 | — | — | |||||||||||||||||||||||
| KraneShares MSCI China Clean Technology Index ETF | ||||||||||||||||||||||||||||||||||
| 603,644 | 9,037 | (277,810 | ) | (74,843 | ) | 24,676 | 284,704 | 10,046 | — | — | ||||||||||||||||||||||||
| KraneShares SSE STAR Market 50 Index ETF | ||||||||||||||||||||||||||||||||||
| 296,468 | 9,020 | (98,624 | ) | (47,980 | ) | (1,410 | ) | 157,474 | 11,005 | — | — | |||||||||||||||||||||||
| $ | 2,789,693 | $ | 52,246 | $ | (1,018,874 | ) | $ | (345,531 | ) | $ | 18,846 | $ | 1,496,380 | $ | — | $ | — | |||||||||||||||||
The accompanying notes are an integral part of the financial statements.
92
Schedule of Investments (Unaudited) September 30, 2022
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF
| Shares | Value | |||||||
| COMMON STOCK — 99.4%‡ | ||||||||
| AUSTRALIA — 15.2% | ||||||||
| Communication Services — 0.9% | ||||||||
| carsales.com | 1,692 | $ | 20,463 | |||||
| Consumer Discretionary — 3.6% | ||||||||
| Collins Foods | 3,136 | 17,602 | ||||||
| Domino’s Pizza Enterprises | 268 | 8,877 | ||||||
| JB Hi-Fi | 2,260 | 55,159 | ||||||
| 81,638 | ||||||||
| Financials — 1.2% | ||||||||
| Steadfast Group | 9,152 | 27,244 | ||||||
| Health Care — 0.9% | ||||||||
| Sonic Healthcare | 1,012 | 19,897 | ||||||
| Industrials — 1.1% | ||||||||
| Washington H Soul Pattinson | 1,460 | 25,148 | ||||||
| Information Technology — 1.6% | ||||||||
| Computershare | 2,286 | 36,392 | ||||||
| Materials — 2.4% | ||||||||
| Brickworks | 2,112 | 29,249 | ||||||
| Northern Star Resources | 4,832 | 24,326 | ||||||
| 53,575 | ||||||||
| Real Estate — 0.7% | ||||||||
| Charter Hall Group† | 2,098 | 15,486 | ||||||
| Utilities — 2.8% | ||||||||
| APA Group | 10,394 | 64,088 | ||||||
| TOTAL AUSTRALIA | 343,931 | |||||||
The accompanying notes are an integral part of the financial statements.
93
Schedule of Investments (Unaudited) September 30, 2022
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| CHINA — 25.3% | ||||||||
| Consumer Discretionary — 0.4% | ||||||||
| Shenzhou International Group Holdings | 1,200 | $ | 9,378 | |||||
| Financials — 5.8% | ||||||||
| New China Life Insurance, Cl H | 44,800 | 85,492 | ||||||
| Ping An Insurance Group of China, Cl H | 9,000 | 44,943 | ||||||
| 130,435 | ||||||||
| Health Care — 5.4% | ||||||||
| China Medical System Holdings | 34,000 | 40,584 | ||||||
| CSPC Pharmaceutical Group | 20,000 | 19,822 | ||||||
| Sinopharm Group, Cl H | 31,200 | 62,560 | ||||||
| 122,966 | ||||||||
| Real Estate — 9.3% | ||||||||
| China Overseas Land & Investment | 32,000 | 83,364 | ||||||
| China Resources Land | 14,000 | 55,109 | ||||||
| CIFI Holdings Group | 312,000 | 31,797 | ||||||
| Longfor Group Holdings | 14,000 | 40,217 | ||||||
| 210,487 | ||||||||
| Utilities — 4.4% | ||||||||
| China Gas Holdings | 27,600 | 33,085 | ||||||
| China Resources Gas Group | 6,200 | 19,706 | ||||||
| Guangdong Investment | 60,000 | 48,077 | ||||||
| 100,868 | ||||||||
| TOTAL CHINA | 574,134 | |||||||
| HONG KONG — 17.5% | ||||||||
| Financials — 0.9% | ||||||||
| AIA Group | 2,400 | 20,010 | ||||||
| Real Estate — 10.0% | ||||||||
| Henderson Land Development | 18,000 | 50,447 | ||||||
| Link REIT† | 7,400 | 51,754 | ||||||
| New World Development | 24,000 | 68,179 | ||||||
| Swire Properties | 26,400 | 56,836 | ||||||
| 227,216 | ||||||||
| Utilities — 6.6% | ||||||||
| China Water Affairs Group | 32,000 | 25,356 | ||||||
| CK Infrastructure Holdings | 11,500 | 58,673 | ||||||
| CLP Holdings | 5,500 | 41,583 | ||||||
| Hong Kong & China Gas | 28,000 | 24,683 | ||||||
| 150,295 | ||||||||
| TOTAL HONG KONG | 397,521 | |||||||
The accompanying notes are an integral part of the financial statements.
94
Schedule of Investments (Unaudited) September 30, 2022
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| INDIA — 0.8% | ||||||||
| Information Technology — 0.8% | ||||||||
| Infosys ADR | 1,012 | $ | 17,174 | |||||
| TOTAL INDIA | 17,174 | |||||||
| INDONESIA — 1.0% | ||||||||
| Financials — 1.0% | ||||||||
| Bank Central Asia | 40,800 | 22,909 | ||||||
| TOTAL INDONESIA | 22,909 | |||||||
| JAPAN — 34.5% | ||||||||
| Communication Services — 2.2% | ||||||||
| Hakuhodo DY Holdings | 600 | 4,220 | ||||||
| KDDI | 800 | 23,451 | ||||||
| Nippon Telegraph & Telephone | 800 | 21,588 | ||||||
| 49,259 | ||||||||
| Consumer Discretionary — 4.4% | ||||||||
| Hikari Tsushin | 200 | 23,545 | ||||||
| Open House Group | 200 | 6,764 | ||||||
| Rinnai | 200 | 14,356 | ||||||
| Sekisui Chemical | 800 | 9,772 | ||||||
| Sekisui House | 1,200 | 19,905 | ||||||
| Seria | 400 | 6,986 | ||||||
| TS Tech | 1,800 | 17,646 | ||||||
| 98,974 | ||||||||
| Consumer Staples — 2.8% | ||||||||
| Asahi Group Holdings | 400 | 12,391 | ||||||
| Kao | 200 | 8,150 | ||||||
| Nisshin Seifun Group | 1,000 | 10,142 | ||||||
| Seven & i Holdings | 200 | 8,022 | ||||||
| Sundrug | 600 | 14,570 | ||||||
| Takara Holdings | 1,400 | 10,224 | ||||||
| 63,499 | ||||||||
| Financials — 3.7% | ||||||||
| Chiba Bank | 3,400 | 18,298 | ||||||
| SBI Holdings | 1,000 | 17,935 | ||||||
| Tokio Marine Holdings | 1,200 | 21,265 | ||||||
| Tokyo Century | 400 | 12,740 | ||||||
| Zenkoku Hosho | 400 | 13,306 | ||||||
| 83,544 | ||||||||
The accompanying notes are an integral part of the financial statements.
95
Schedule of Investments (Unaudited) September 30, 2022
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF (continued)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Health Care — 2.5% | ||||||||
| Alfresa Holdings | 1,600 | $ | 18,681 | |||||
| Astellas Pharma | 1,000 | 13,244 | ||||||
| Mani | 600 | 7,287 | ||||||
| Medipal Holdings | 600 | 7,640 | ||||||
| Shionogi | 200 | 9,657 | ||||||
| 56,509 | ||||||||
| Industrials — 4.7% | ||||||||
| COMSYS Holdings | 1,000 | 17,009 | ||||||
| EXEO Group | 1,200 | 17,335 | ||||||
| Hazama Ando | 3,800 | 21,974 | ||||||
| Kurita Water Industries | 200 | 7,130 | ||||||
| Nichias | 800 | 12,408 | ||||||
| Sanwa Holdings | 1,600 | 13,751 | ||||||
| SHO-BOND Holdings | 400 | 17,300 | ||||||
| 106,907 | ||||||||
| Information Technology — 2.7% | ||||||||
| Itochu Techno-Solutions | 400 | 9,368 | ||||||
| Murata Manufacturing | 200 | 9,164 | ||||||
| NEC Networks & System Integration | 800 | 8,694 | ||||||
| Oracle Japan* | 200 | 10,639 | ||||||
| Otsuka | 400 | 12,505 | ||||||
| SCSK | 800 | 12,104 | ||||||
| 62,474 | ||||||||
| Materials — 3.4% | ||||||||
| Aica Kogyo | 800 | 17,300 | ||||||
| Denka | 600 | 13,161 | ||||||
| Nippon Sanso Holdings | 400 | 6,304 | ||||||
| Nissan Chemical | 200 | 8,912 | ||||||
| Nitto Denko | 200 | 10,819 | ||||||
| Shin-Etsu Chemical | 200 | 19,800 | ||||||
| 76,296 | ||||||||
| Real Estate — 8.1% | ||||||||
| Comforia Residential† | 6 | 13,638 | ||||||
| Daiwa Office Investment† | 4 | 18,570 | ||||||
| Heiwa Real Estate† | 18 | 18,865 | ||||||
| Hulic | 2,200 | 16,157 | ||||||
| Japan Metropolitan Fund Invest† | 34 | 25,556 | ||||||
| Japan Real Estate Investment† | 4 | 16,498 | ||||||
| Mori Hills Investment† | 18 | 19,437 | ||||||
| Nomura Real Estate Holdings | 800 | 18,101 | ||||||
| NTT UD Investment† | 20 | 20,408 | ||||||
The accompanying notes are an integral part of the financial statements.
96
Schedule of Investments (Unaudited) September 30, 2022
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF (concluded)
| Shares | Value | |||||||
| COMMON STOCK (continued) | ||||||||
| Real Estate (continued) | ||||||||
| Tokyo Tatemono | 1,200 | $ | 17,062 | |||||
| 184,292 | ||||||||
| TOTAL JAPAN | 781,754 | |||||||
| NEW ZEALAND — 0.5% | ||||||||
| Health Care — 0.5% | ||||||||
| Fisher & Paykel Healthcare | 1,020 | 10,674 | ||||||
| TOTAL NEW ZEALAND | 10,674 | |||||||
| PHILIPPINES — 0.8% | ||||||||
| Industrials — 0.8% | ||||||||
| International Container Terminal Services | 6,660 | 17,790 | ||||||
| TOTAL PHILIPPINES | 17,790 | |||||||
| TAIWAN — 2.9% | ||||||||
| Financials — 1.0% | ||||||||
| Chailease Holding | 4,000 | 22,993 | ||||||
| Information Technology — 1.9% | ||||||||
| Advantech | 2,000 | 18,489 | ||||||
| Sinbon Electronics | 3,000 | 25,040 | ||||||
| 43,529 | ||||||||
| TOTAL TAIWAN | 66,522 | |||||||
| THAILAND — 0.9% | ||||||||
| Financials — 0.9% | ||||||||
| Krungthai Card | 13,000 | 19,817 | ||||||
| TOTAL THAILAND | 19,817 | |||||||
| TOTAL COMMON STOCK | ||||||||
| (Cost $2,495,682) | 2,252,226 | |||||||
| TOTAL INVESTMENTS — 99.4% | ||||||||
| (Cost $2,495,682) | 2,252,226 | |||||||
| OTHER ASSETS LESS LIABILITIES — 0.6% | 14,441 | |||||||
| NET ASSETS — 100% | $ | 2,266,667 | ||||||
| ‡ | Industries are utilized for compliance purposes, whereas sectors are utilized for reporting. |
| * | Non-income producing security. |
| † | Real Estate Investment Trust |
ADR — American Depositary Receipt
Cl — Class
REIT — Real Estate investment Trust
As of September 30, 2022, all of the Fund’s investments were considered Level 1 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.
The accompanying notes are an integral part of the financial statements.
97
Statements of Assets and Liabilities (Unaudited)
September 30, 2022
|
KraneShares |
KraneShares |
KraneShares |
||||||||||
| Assets: | ||||||||||||
| Investments at Value | $ | 5,753,671 | $ | 5,267,806,546 | * | $ | 580,497,239 | |||||
| Cash and Cash Equivalents | 5,293 | 2,052,273 | 237,585 | |||||||||
| Foreign Currency at Value | 397 | — | 2,203,665 | |||||||||
| Unrealized Appreciation on Spot Contracts | 1 | — | — | |||||||||
| Receivable for Capital Shares Sold | — | 49,402 | — | |||||||||
| Receivable for Investment Securities Sold | — | 45,859,547 | — | |||||||||
| Dividend and Interest Receivable | — | 1,496,689 | — | |||||||||
| Prepaid Expenses | 66 | 45,276 | 4,267 | |||||||||
| Total Assets | 5,759,428 | 5,317,309,733 | 582,942,756 | |||||||||
| Liabilities: | ||||||||||||
| Payable for Management Fees | 3,375 | 3,358,612 | 268,943 | |||||||||
| Payable for Trustees’ Fee | 44 | 20,913 | 2,654 | |||||||||
| Obligation to Return Securities Lending Collateral | — | 84,950,213 | — | |||||||||
| Payable for Capital Shares Redeemed | — | 45,580,532 | — | |||||||||
| Payable for Securities Lending Fees | — | 9,903 | — | |||||||||
| Unrealized Depreciation on Spot Contracts | — | 3,868 | — | |||||||||
| Total Liabilities | 3,419 | 133,924,041 | 271,597 | |||||||||
| Net Assets | $ | 5,756,009 | $ | 5,183,385,692 | $ | 582,671,159 | ||||||
| Net Assets Consist of: | ||||||||||||
| Paid-in Capital | $ | 7,229,529 | $ | 12,017,720,899 | $ | 668,314,304 | ||||||
| Total Distributable Loss | (1,473,520 | ) | (6,834,335,207 | ) | (85,643,145 | ) | ||||||
| Net Assets | $ | 5,756,009 | $ | 5,183,385,692 | $ | 582,671,159 | ||||||
| Outstanding Shares of Beneficial Interest (unlimited authorization – no par value) | 250,000 | 210,400,000 | 19,050,000 | |||||||||
| Net Asset Value, Offering and Redemption Price Per Share | $ | 23.02 | $ | 24.64 | $ | 30.59 | ||||||
| Cost of Investments | $ | 6,751,285 | $ | 8,343,013,418 | $ | 752,053,254 | ||||||
| Cost of Foreign Currency | 397 | — | 2,186,551 | |||||||||
| *Includes Market Value of Securities on Loan | — | 79,478,249 | — | |||||||||
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
98
Statements of Assets and Liabilities (Unaudited) (continued)
September 30, 2022
| KraneShares Bloomberg China Bond Inclusion Index ETF |
KraneShares MSCI All China Index ETF |
KraneShares MSCI One Belt One Road Index ETF |
||||||||||
| Assets: | ||||||||||||
| Investments at Value | $ | 12,019,870 | $ | 5,070,149 | $ | 4,461,832 | ||||||
| Cash and Cash Equivalents | 1,681,320 | — | 22,848 | |||||||||
| Foreign Currency at Value | 11,650 | 1,778 | 4,284 | |||||||||
| Dividend and Interest Receivable | 143,834 | 6,773 | 9,889 | |||||||||
| Reclaim Receivable | — | 113 | — | |||||||||
| Prepaid Expenses | 87 | 78 | 58 | |||||||||
| Total Assets | 13,856,761 | 5,078,891 | 4,498,911 | |||||||||
| Liabilities: | ||||||||||||
| Payable for Management Fees | 5,576 | 2,461 | 3,048 | |||||||||
| Payable for Trustees’ Fee | 26 | 111 | 41 | |||||||||
| Payable to Custodian | — | 1,596 | — | |||||||||
| Payable for Foreign Capital Gains Tax | — | — | 2,528 | |||||||||
| Total Liabilities | 5,602 | 4,168 | 5,617 | |||||||||
| Net Assets | $ | 13,851,159 | $ | 5,074,723 | $ | 4,493,294 | ||||||
| Net Assets Consist of: | ||||||||||||
| Paid-in Capital | $ | 15,061,957 | $ | 13,528,093 | $ | 8,757,609 | ||||||
| Total Distributable Loss | (1,210,798 | ) | (8,453,370 | ) | (4,264,315 | ) | ||||||
| Net Assets | $ | 13,851,159 | $ | 5,074,723 | $ | 4,493,294 | ||||||
| Outstanding Shares of Beneficial Interest (unlimited authorization – no par value) | 450,000 | 250,000 | 200,002 | |||||||||
| Net Asset Value, Offering and Redemption Price Per Share | $ | 30.78 | $ | 20.30 | $ | 22.47 | ||||||
| Cost of Investments | $ | 13,019,858 | $ | 7,824,792 | $ | 5,725,917 | ||||||
| Cost of Foreign Currency | 11,955 | 1,778 | 4,315 | |||||||||
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
99
Statements of Assets and Liabilities (Unaudited) (continued)
September 30, 2022
| KraneShares Emerging Markets Consumer Technology Index ETF |
KraneShares MSCI China Clean Technology Index ETF |
KraneShares Electric Vehicles and Future Mobility Index ETF |
||||||||||
| Assets: | ||||||||||||
| Investments at Value | $ | 32,820,759 | * | $ | 108,586,078 | $ | 229,259,168 | * | ||||
| Cash and Cash Equivalents | 150,859 | 267,336 | 351,666 | |||||||||
| Foreign Currency at Value | 122 | 34 | 38,133 | |||||||||
| Dividend and Interest Receivable | 9,875 | 269,208 | 168,007 | |||||||||
| Reclaim Receivable | 5,255 | — | 266,299 | |||||||||
| Receivable for Capital Shares Sold | — | — | 2,462 | |||||||||
| Receivable for Investment Securities Sold | — | — | 3,065,292 | |||||||||
| Unrealized Appreciation on Spot Contracts | — | — | 2,077 | |||||||||
| Prepaid Expenses | 441 | 1,067 | 1,967 | |||||||||
| Total Assets | 32,987,311 | 109,123,723 | 233,155,071 | |||||||||
| Liabilities: | ||||||||||||
| Obligation to Return Securities Lending Collateral | 2,456,263 | — | 18,509,024 | |||||||||
| Payable for Management Fees | 15,127 | 78,846 | 135,004 | |||||||||
| Payable for Securities Lending Fees | 521 | — | 4,462 | |||||||||
| Payable for Trustees’ Fee | 444 | 690 | 1,570 | |||||||||
| Payable for Capital Shares Redeemed | — | — | 3,064,327 | |||||||||
| Total Liabilities | 2,472,355 | 79,536 | 21,714,387 | |||||||||
| Net Assets | $ | 30,514,956 | $ | 109,044,187 | $ | 211,440,684 | ||||||
| Net Assets Consist of: | ||||||||||||
| Paid-in Capital | $ | 91,468,477 | $ | 183,212,568 | $ | 308,451,777 | ||||||
| Total Distributable Loss | (60,953,521 | ) | (74,168,381 | ) | (97,011,093 | ) | ||||||
| Net Assets | $ | 30,514,956 | $ | 109,044,187 | $ | 211,440,684 | ||||||
| Outstanding Shares of Beneficial Interest (unlimited authorization – no par value) | 2,300,002 | 3,850,002 | 6,900,002 | |||||||||
| Net Asset Value, Offering and Redemption Price Per Share | $ | 13.27 | $ | 28.32 | $ | 30.64 | ||||||
| Cost of Investments | $ | 57,359,056 | $ | 164,661,293 | $ | 288,687,818 | ||||||
| Cost of Foreign Currency | 123 | 34 | 38,061 | |||||||||
| *Includes Market Value of Securities on Loan | 1,932,924 | — | 17,249,982 | |||||||||
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
100
Statements of Assets and Liabilities (Unaudited) (continued)
September 30, 2022
| KraneShares MSCI All China Health Care Index ETF |
KraneShares Asia Pacific High Income Bond ETF |
KraneShares Emerging Markets Healthcare Index ETF |
||||||||||
| Assets: | ||||||||||||
| Investments at Value | $ | 90,319,969 | * | $ | 16,675,009 | $ | 1,970,205 | |||||
| Cash and Cash Equivalents | 70,808 | 1,555,643 | 2,769 | |||||||||
| Foreign Currency at Value | 3,378 | 237 | 890 | |||||||||
| Dividend and Interest Receivable | 51,571 | 297,921 | 636 | |||||||||
| Receivable for Investment Securities Sold | — | 674,768 | 513 | |||||||||
| Unrealized Appreciation on Spot Contracts | — | — | 1 | |||||||||
| Prepaid Expenses | 1,028 | 218 | 15 | |||||||||
| Total Assets | 90,446,754 | 19,203,796 | 1,975,029 | |||||||||
| Liabilities: | ||||||||||||
| Obligation to Return Securities Lending Collateral | 1,299,955 | — | — | |||||||||
| Payable for Management Fees | 50,556 | 11,505 | 1,311 | |||||||||
| Payable for Trustees’ Fee | 481 | 166 | 9 | |||||||||
| Payable for Securities Lending Fees | 65 | — | — | |||||||||
| Payable for Investment Securities Purchased | — | — | 517 | |||||||||
| Payable for Foreign Capital Gains Tax | — | — | 8,135 | |||||||||
| Total Liabilities | 1,351,057 | 11,671 | 9,972 | |||||||||
| Net Assets | $ | 89,095,697 | $ | 19,192,125 | $ | 1,965,057 | ||||||
| Net Assets Consist of: | ||||||||||||
| Paid-in Capital | $ | 181,185,373 | $ | 28,251,966 | $ | 3,761,145 | ||||||
| Total Distributable Loss | (92,089,676 | ) | (9,059,841 | ) | (1,796,088 | ) | ||||||
| Net Assets | $ | 89,095,697 | $ | 19,192,125 | $ | 1,965,057 | ||||||
| Outstanding Shares of Beneficial Interest (unlimited authorization – no par value) | 5,000,002 | 750,001 | 100,002 | |||||||||
| Net Asset Value, Offering and Redemption Price Per Share | $ | 17.82 | $ | 25.59 | $ | 19.65 | ||||||
| Cost of Investments | $ | 144,977,832 | $ | 18,743,368 | $ | 3,034,199 | ||||||
| Cost of Foreign Currency | 3,378 | 254 | 890 | |||||||||
| *Includes Market Value of Securities on Loan | 1,236,285 | — | — | |||||||||
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
101
Statements of Assets and Liabilities (Unaudited) (continued)
September 30, 2022
| KraneShares MSCI Emerging Markets ex China Index ETF |
KraneShares MSCI China ESG Leaders Index ETF |
KraneShares
CICC China 5G & Semiconductor Index ETF |
||||||||||
| Assets: | ||||||||||||
| Investments at Value | $ | 13,525,735 | $ | 4,354,159 | $ | 13,197,159 | ||||||
| Cash and Cash Equivalents | 116,101 | 6,482 | 231,894 | |||||||||
| Foreign Currency at Value | 1,353 | 182 | — | |||||||||
| Dividend and Interest Receivable | 30,777 | 5,964 | — | |||||||||
| Reclaim Receivable | 144 | — | — | |||||||||
| Receivable for Capital Shares Sold | — | — | 1,365 | |||||||||
| Receivable for Investment Securities Sold | — | — | 737,131 | |||||||||
| Unrealized Appreciation on Spot Contracts | — | — | 1,750 | |||||||||
| Prepaid Expenses | 211 | 57 | 164 | |||||||||
| Total Assets | 13,674,321 | 4,366,844 | 14,169,463 | |||||||||
| Liabilities: | ||||||||||||
| Payable for Foreign Capital Gains Tax | 23,573 | — | — | |||||||||
| Payable for Management Fees | 2,758 | 2,276 | 8,382 | |||||||||
| Payable for Trustees’ Fee | 161 | 69 | 125 | |||||||||
| Unrealized Depreciation on Spot Contracts | 1 | — | — | |||||||||
| Payable for Investment Securities Purchased | — | — | 216,837 | |||||||||
| Payable for Capital Shares Redeemed | — | — | 733,807 | |||||||||
| Total Liabilities | 26,493 | 2,345 | 959,151 | |||||||||
| Net Assets | $ | 13,647,828 | $ | 4,364,499 | $ | 13,210,312 | ||||||
| Net Assets Consist of: | ||||||||||||
| Paid-in Capital | $ | 20,281,525 | $ | 8,638,586 | $ | 30,533,405 | ||||||
| Total Distributable Loss | (6,633,697 | ) | (4,274,087 | ) | (17,323,093 | ) | ||||||
| Net Assets | $ | 13,647,828 | $ | 4,364,499 | $ | 13,210,312 | ||||||
| Outstanding Shares of Beneficial Interest (unlimited authorization – no par value) | 600,002 | 250,000 | 900,002 | |||||||||
| Net Asset Value, Offering and Redemption Price Per Share | $ | 22.75 | $ | 17.46 | $ | 14.68 | ||||||
| Cost of Investments | $ | 19,202,673 | $ | 6,439,585 | $ | 19,259,025 | ||||||
| Cost of Foreign Currency | 1,417 | 182 | — | |||||||||
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
102
Statements of Assets and Liabilities (Unaudited) (continued)
September 30, 2022
| KraneShares CICC China Consumer Leaders Index ETF |
KraneShares SSE STAR Market 50 Index ETF |
KraneShares Hang Seng TECH Index ETF |
||||||||||
| Assets: | ||||||||||||
| Investments at Value | $ | 7,354,098 | $ | 43,775,524 | $ | 9,988,769 | ||||||
| Cash and Cash Equivalents | 347,500 | 126,755 | 6,027 | |||||||||
| Foreign Currency at Value | 321 | 213,925 | — | |||||||||
| Receivable for Investment Securities Sold | 552,969 | — | — | |||||||||
| Dividend and Interest Receivable | 2,174 | — | — | |||||||||
| Receivable for Capital Shares Sold | — | — | 25 | |||||||||
| Prepaid Expenses | 339 | 491 | 36 | |||||||||
| Total Assets | 8,257,401 | 44,116,695 | 9,994,857 | |||||||||
| Liabilities: | ||||||||||||
| Payable for Investment Securities Purchased | 903,683 | — | — | |||||||||
| Payable for Management Fees | 4,252 | 34,792 | 6,360 | |||||||||
| Payable for Trustees’ Fee | 423 | 415 | 58 | |||||||||
| Unrealized Depreciation on Spot Contracts | 16 | — | — | |||||||||
| Total Liabilities | 908,374 | 35,207 | 6,418 | |||||||||
| Net Assets | $ | 7,349,027 | $ | 44,081,488 | $ | 9,988,439 | ||||||
| Net Assets Consist of: | ||||||||||||
| Paid-in Capital | $ | 28,751,310 | $ | 76,774,619 | $ | 15,254,450 | ||||||
| Total Distributable Loss | (21,402,283 | ) | (32,693,131 | ) | (5,266,011 | ) | ||||||
| Net Assets | $ | 7,349,027 | $ | 44,081,488 | $ | 9,988,439 | ||||||
| Outstanding Shares of Beneficial Interest (unlimited authorization – no par value) | 400,002 | 3,050,000 | 950,002 | |||||||||
| Net Asset Value, Offering and Redemption Price Per Share | $ | 18.37 | $ | 14.45 | $ | 10.51 | ||||||
| Cost of Investments | $ | 8,054,317 | $ | 62,375,273 | $ | 13,817,338 | ||||||
| Cost of Foreign Currency | 321 | 220,670 | — | |||||||||
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
103
Statements of Assets and Liabilities (Unaudited) (concluded)
September 30, 2022
| KraneShares China Innovation ETF |
KraneShares
S&P Pan Asia Dividend Aristocrats Index ETF |
|||||||
| Assets: | ||||||||
| Investments at Value | $ | 1,496,380 | $ | 2,252,226 | ||||
| Cash and Cash Equivalents | 1,661 | 19,654 | ||||||
| Dividend and Interest Receivable | — | 10,521 | ||||||
| Prepaid Expenses | 14 | — | ||||||
| Total Assets | 1,498,055 | 2,282,401 | ||||||
| Liabilities: | ||||||||
| Payable for Management Fees | 161 | 674 | ||||||
| Payable to Custodian | — | 15,051 | ||||||
| Payable for Trustees’ Fee | — | 9 | ||||||
| Total Liabilities | 161 | 15,734 | ||||||
| Net Assets | $ | 1,497,894 | $ | 2,266,667 | ||||
| Net Assets Consist of: | ||||||||
| Paid-in Capital | $ | 2,468,402 | $ | 2,500,050 | ||||
| Total Distributable Loss | (970,508 | ) | (233,383 | ) | ||||
| Net Assets | $ | 1,497,894 | $ | 2,266,667 | ||||
| Outstanding Shares of Beneficial Interest (unlimited authorization – no par value) | 100,002 | 100,002 | ||||||
| Net Asset Value, Offering and Redemption Price Per Share | $ | 14.98 | $ | 22.67 | ||||
| Cost of Investments | $ | 2,594,483 | $ | 2,495,682 | ||||
| Cost of Foreign Currency | — | (15,051 | ) | |||||
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
104
Statements of Operations (Unaudited)
For the Period Ended September 30, 2022
| KraneShares CICC China Leaders 100 Index ETF |
KraneShares CSI China Internet ETF |
KraneShares Bosera MSCI China A 50 Connect Index ETF |
||||||||||
| Investment Income: | ||||||||||||
| Dividend Income | $ | 295,188 | $ | 30,430,956 | $ | 12,584,180 | ||||||
| Interest Income | 315 | 80,749 | 18,305 | |||||||||
| Security Lending Income | — | 2,208,558 | — | |||||||||
| Less: Foreign Taxes Withheld | (29,558 | ) | — | (1,263,905 | ) | |||||||
| Total Investment Income | 265,945 | 32,720,263 | 11,338,580 | |||||||||
| Expenses: | ||||||||||||
| Management Fees† | 24,885 | 22,481,817 | 2,334,001 | |||||||||
| Trustees’ Fees | 161 | 129,365 | 11,908 | |||||||||
| Security Lending Fees† | — | 209,510 | — | |||||||||
| Insurance Expense | 51 | 36,475 | 3,317 | |||||||||
| Total Expenses | 25,097 | 22,857,167 | 2,349,226 | |||||||||
| Management Fee Waiver† | — | — | (735,366 | ) | ||||||||
| Net Expenses | 25,097 | 22,857,167 | 1,613,860 | |||||||||
| Net Investment Income | 240,848 | 9,863,096 | 9,724,720 | |||||||||
| Net Realized Gain (Loss) on: | ||||||||||||
| Investments | (723,370 | ) | (1,469,582,373 | ) | (18,847,217 | ) | ||||||
| Foreign Currency Translations | (8,954 | ) | (91,050 | ) | (365,043 | ) | ||||||
| Net Realized (Loss) | (732,324 | ) | (1,469,673,423 | ) | (19,212,260 | ) | ||||||
| Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
| Investments | (1,285,439 | ) | 246,830,570 | (114,138,307 | ) | |||||||
| Foreign Currency Translations | — | (2,760 | ) | (31,276 | ) | |||||||
| Net Change in Unrealized Appreciation (Depreciation) | (1,285,439 | ) | 246,827,810 | (114,169,583 | ) | |||||||
| Net Realized and Unrealized Loss | (2,017,763 | ) | (1,222,845,613 | ) | (133,381,843 | ) | ||||||
| Net Decrease in Net Assets Resulting from Operations | $ | (1,776,915 | ) | $ | (1,212,982,517 | ) | $ | (123,657,123 | ) | |||
| † | See Note 4 in Notes to Financial Statements. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
105
Statements of Operations (Unaudited) (continued)
For the Period Ended September 30, 2022
| KraneShares Bloomberg China Bond Inclusion Index ETF |
KraneShares MSCI All China Index ETF |
KraneShares MSCI One Belt One Road Index ETF |
||||||||||
| Investment Income: | ||||||||||||
| Dividend Income | $ | — | $ | 189,651 | $ | 199,646 | ||||||
| Interest Income | 172,797 | 136 | 443 | |||||||||
| Less: Foreign Taxes Withheld | — | (15,532 | ) | (20,341 | ) | |||||||
| Total Investment Income | 172,797 | 174,255 | 179,748 | |||||||||
| Expenses: | ||||||||||||
| Management Fees† | 49,272 | 32,513 | 26,306 | |||||||||
| Trustees’ Fees | 257 | 252 | 150 | |||||||||
| Insurance Expense | 67 | 90 | 46 | |||||||||
| Total Expenses | 49,596 | 32,855 | 26,502 | |||||||||
| Management Fee Waiver† | (14,492 | ) | (9,563 | ) | — | |||||||
| Net Expenses | 35,104 | 23,292 | 26,502 | |||||||||
| Net Investment Income | 137,693 | 150,963 | 153,246 | |||||||||
| Net Realized Gain (Loss) on: | ||||||||||||
| Investments | (3,870 | ) | (5,937,455 | ) | 63,783 | |||||||
| Foreign Currency Translations | (243,997 | ) | 4,724 | (2,698 | ) | |||||||
| Net Realized Gain (Loss) | (247,867 | ) | (5,932,731 | ) | 61,085 | |||||||
| Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
| Investments | (1,144,029 | ) | 3,568,445 | (1,553,861 | ) | |||||||
| Accrued Foreign Capital Gains Tax on Appreciated Securities | — | — | 849 | |||||||||
| Foreign Currency Translations | (9,486 | ) | (29 | ) | 184 | |||||||
| Net Change in Unrealized Appreciation (Depreciation) | (1,153,515 | ) | 3,568,416 | (1,552,828 | ) | |||||||
| Net Realized and Unrealized Loss | (1,401,382 | ) | (2,364,315 | ) | (1,491,743 | ) | ||||||
| Net Decrease in Net Assets Resulting from Operations | $ | (1,263,689 | ) | $ | (2,213,352 | ) | $ | (1,338,497 | ) | |||
| † | See Note 4 in Notes to Financial Statements. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
106
Statements of Operations (Unaudited) (continued)
For the Period Ended September 30, 2022
| KraneShares Emerging Markets Consumer Technology Index ETF |
KraneShares MSCI China Clean Technology Index ETF |
KraneShares Electric Vehicles and Future Mobility Index ETF |
||||||||||
| Investment Income: | ||||||||||||
| Dividend Income | $ | 215,295 | $ | 1,420,588 | $ | 2,544,646 | ||||||
| Interest Income | 224 | 1,647 | 1,585 | |||||||||
| Security Lending Income | 37,339 | — | 354,441 | |||||||||
| Less: Foreign Taxes Withheld | (5,883 | ) | (37,125 | ) | (340,590 | ) | ||||||
| Total Investment Income | 246,975 | 1,385,110 | 2,560,082 | |||||||||
| Expenses: | ||||||||||||
| Management Fees† | 176,854 | 547,907 | 865,983 | |||||||||
| Trustees’ Fees | 1,134 | 2,900 | 5,453 | |||||||||
| Security Lending Fees† | 3,670 | — | 35,401 | |||||||||
| Insurance Expense | 364 | 822 | 1,563 | |||||||||
| Total Expenses | 182,022 | 551,629 | 908,400 | |||||||||
| Management Fee Waiver† | (45,347 | ) | — | — | ||||||||
| Net Expenses | 136,675 | 551,629 | 908,400 | |||||||||
| Net Investment Income | 110,300 | 833,481 | 1,651,682 | |||||||||
| Net Realized Gain (Loss) on: | ||||||||||||
| Investments | (15,621,775 | ) | (8,471,786 | ) | (23,719,932 | ) | ||||||
| Foreign Currency Translations | (29,943 | ) | 5,048 | (14,026 | ) | |||||||
| Net Realized (Loss) | (15,651,718 | ) | (8,466,738 | ) | (23,733,958 | ) | ||||||
| Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
| Investments | 2,765,201 | (25,438,346 | ) | (41,958,119 | ) | |||||||
| Foreign Currency Translations | (575 | ) | (19 | ) | (21,387 | ) | ||||||
| Net Change in Unrealized Appreciation (Depreciation) | 2,764,626 | (25,438,365 | ) | (41,979,506 | ) | |||||||
| Net Realized and Unrealized Loss | (12,887,092 | ) | (33,905,103 | ) | (65,713,464 | ) | ||||||
| Net Decrease in Net Assets Resulting from Operations | $ | (12,776,792 | ) | $ | (33,071,622 | ) | $ | (64,061,782 | ) | |||
| † | See Note 4 in Notes to Financial Statements. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
107
Statements of Operations (Unaudited) (continued)
For the Period Ended September 30, 2022
| KraneShares MSCI All China Health Care Index ETF |
KraneShares Asia Pacific High Income Bond ETF |
KraneShares Emerging Markets Healthcare Index ETF |
||||||||||
| Investment Income: | ||||||||||||
| Dividend Income | $ | 1,104,609 | $ | — | $ | 14,384 | ||||||
| Interest Income | 1,125 | 1,460,534 | — | |||||||||
| Security Lending Income | 6,438 | — | 179 | |||||||||
| Less: Foreign Taxes Withheld | (85,994 | ) | (1,209 | ) | (2,267 | ) | ||||||
| Total Investment Income | 1,026,178 | 1,459,325 | 12,296 | |||||||||
| Expenses: | ||||||||||||
| Management Fees† | 446,671 | 86,235 | 8,616 | |||||||||
| Trustees’ Fees | 2,192 | 556 | 44 | |||||||||
| Security Lending Fees† | 598 | — | — | |||||||||
| Insurance Expense | 618 | 168 | 29 | |||||||||
| Total Expenses | 450,079 | 86,959 | 8,689 | |||||||||
| Management Fee Waiver† | (80,171 | ) | — | — | ||||||||
| Net Expenses | 369,908 | 86,959 | 8,689 | |||||||||
| Net Investment Income | 656,270 | 1,372,366 | 3,607 | |||||||||
| Net Realized Gain (Loss) on: | ||||||||||||
| Investments | (19,278,788 | ) | (3,033,630 | ) | (232,528 | ) | ||||||
| Foreign Currency Translations | (1,801 | ) | — | (686 | ) | |||||||
| Net Realized (Loss) | (19,280,589 | ) | (3,033,630 | ) | (233,214 | ) | ||||||
| Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
| Investments | (13,717,426 | ) | (755,045 | ) | (277,371 | ) | ||||||
| Accrued Foreign Capital Gains Tax on Appreciated Securities | — | — | 3,476 | |||||||||
| Foreign Currency Translations | (5 | ) | (18 | ) | (276 | ) | ||||||
| Net Change in Unrealized Appreciation (Depreciation) | (13,717,431 | ) | (755,063 | ) | (274,171 | ) | ||||||
| Net Realized and Unrealized Loss | (32,998,020 | ) | (3,788,693 | ) | (507,385 | ) | ||||||
| Net Decrease in Net Assets Resulting from Operations | $ | (32,341,750 | ) | $ | (2,416,327 | ) | $ | (503,778 | ) | |||
| † | See Note 4 in Notes to Financial Statements. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
108
Statements of Operations (Unaudited) (continued)
For the Period Ended September 30, 2022
| KraneShares MSCI Emerging Markets ex China Index ETF |
KraneShares MSCI China ESG Leaders Index ETF |
KraneShares CICC China 5G & Semiconductor Index ETF |
||||||||||
| Investment Income: | ||||||||||||
| Dividend Income | $ | 630,064 | $ | 113,874 | $ | 195,421 | ||||||
| Interest Income | 1,706 | — | 346 | |||||||||
| Less: Foreign Taxes Withheld | (114,738 | ) | (7,082 | ) | (18,680 | ) | ||||||
| Total Investment Income | 517,032 | 106,792 | 177,087 | |||||||||
| Expenses: | ||||||||||||
| Management Fees† | 66,901 | 18,161 | 71,675 | |||||||||
| Trustees’ Fees | 533 | 109 | 406 | |||||||||
| Insurance Expense | 166 | 44 | 124 | |||||||||
| Total Expenses | 67,600 | 18,314 | 72,205 | |||||||||
| Management Fee Waiver† | (40,371 | ) | — | (12,865 | ) | |||||||
| Net Expenses | 27,229 | 18,314 | 59,340 | |||||||||
| Net Investment Income | 489,803 | 88,478 | 117,747 | |||||||||
| Net Realized Gain (Loss) on: | ||||||||||||
| Investments | (1,260,877 | ) | (1,753,452 | ) | (1,848,767 | ) | ||||||
| Foreign Currency Translations | (48,092 | ) | (940 | ) | (6,653 | ) | ||||||
| Net Realized (Loss) | (1,308,969 | ) | (1,754,392 | ) | (1,855,420 | ) | ||||||
| Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
| Investments | (5,148,919 | ) | 325,607 | (3,420,623 | ) | |||||||
| Accrued Foreign Capital Gains Tax on Appreciated Securities | 39,026 | — | — | |||||||||
| Foreign Currency Translations | 541 | (2 | ) | 1,727 | ||||||||
| Net Change in Unrealized Appreciation (Depreciation) | (5,109,352 | ) | 325,605 | (3,418,896 | ) | |||||||
| Net Realized and Unrealized Loss | (6,418,321 | ) | (1,428,787 | ) | (5,274,316 | ) | ||||||
| Net Decrease in Net Assets Resulting from Operations | $ | (5,928,518 | ) | $ | (1,340,309 | ) | $ | (5,156,569 | ) | |||
| † | See Note 4 in Notes to Financial Statements. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
109
Statements of Operations (Unaudited) (continued)
For the Period Ended September 30, 2022
| KraneShares CICC China Consumer Leaders Index ETF |
KraneShares SSE STAR Market 50 Index ETF |
KraneShares Hang Seng TECH Index ETF |
||||||||||
| Investment Income: | ||||||||||||
| Dividend Income | $ | 204,316 | $ | 239,472 | $ | 42,098 | ||||||
| Interest Income | 1,623 | 738 | — | |||||||||
| Less: Foreign Taxes Withheld | (18,538 | ) | (24,026 | ) | (546 | ) | ||||||
| Total Investment Income | 187,401 | 216,184 | 41,552 | |||||||||
| Expenses: | ||||||||||||
| Management Fees† | 46,187 | 244,383 | 26,033 | |||||||||
| Trustees’ Fees | 647 | 1,264 | 146 | |||||||||
| Insurance Expense | 265 | 387 | 29 | |||||||||
| Net Expenses | 47,099 | 246,034 | 26,208 | |||||||||
| Net Investment Income (Loss) | 140,302 | (29,850 | ) | 15,344 | ||||||||
| Net Realized Gain (Loss) on: | ||||||||||||
| Investments | (11,137,397 | ) | (7,288,440 | ) | (834,477 | ) | ||||||
| Foreign Currency Translations | 17,537 | (11,515 | ) | (687 | ) | |||||||
| Net Realized (Loss) | (11,119,860 | ) | (7,299,955 | ) | (835,164 | ) | ||||||
| Net Change in Unrealized Appreciation (Depreciation) on: | ||||||||||||
| Investments | 9,415,801 | (6,341,035 | ) | (2,287,827 | ) | |||||||
| Foreign Currency Translations | 149 | (18,791 | ) | 30 | ||||||||
| Net Change in Unrealized Appreciation (Depreciation) | 9,415,950 | (6,359,826 | ) | (2,287,797 | ) | |||||||
| Net Realized and Unrealized Loss | (1,703,910 | ) | (13,659,781 | ) | (3,122,961 | ) | ||||||
| Net Decrease in Net Assets Resulting from Operations | $ | (1,563,608 | ) | $ | (13,689,631 | ) | $ | (3,107,617 | ) | |||
| † | See Note 4 in Notes to Financial Statements. |
| (1) | Commenced operations on June 8, 2021. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
110
Statements of Operations (Unaudited) (concluded)
For the Period Ended September 30, 2022
| KraneShares China Innovation ETF |
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF(1) |
|||||||
| Investment Income: | ||||||||
| Dividend Income | $ | — | $ | 11,939 | ||||
| Less: Foreign Taxes Withheld | — | (1,401 | ) | |||||
| Total Investment Income | — | 10,538 | ||||||
| Expenses: | ||||||||
| Management Fees† | 2,799 | 674 | ||||||
| Trustees’ Fees | 40 | 9 | ||||||
| Insurance Expense | 11 | — | ||||||
| Total Expenses | 2,850 | 683 | ||||||
| Management Fee Waiver† | (1,004 | ) | — | |||||
| Net Expenses | 1,846 | 683 | ||||||
| Net Investment Income (Loss) | (1,846 | ) | 9,855 | |||||
| Net Realized Gain on: | ||||||||
| Investments | (21 | ) | — | |||||
| Affiliated Investments | 18,847 | — | ||||||
| Foreign Currency Translations | — | 235 | ||||||
| Net Realized Gain | 18,826 | 235 | ||||||
| Net Change in Unrealized Appreciation on: | ||||||||
| Investments | — | (243,456 | ) | |||||
| Affiliated Investments | (345,531 | ) | — | |||||
| Foreign Currency Translations | — | (17 | ) | |||||
| Net Change in Unrealized Depreciation | (345,531 | ) | (243,473 | ) | ||||
| Net Realized and Unrealized Loss | (326,705 | ) | (243,238 | ) | ||||
| Net Decrease in Net Assets Resulting from Operations | $ | (328,551 | ) | $ | (233,383 | ) | ||
| † | See Note 4 in Notes to Financial Statements. |
| (1) | Commenced operations on September 15, 2022. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
111
Statements of Changes in Net Assets
| KraneShares CICC China Leaders | ||||||||
| 100 Index ETF | ||||||||
| Period Ended September 30, 2022 (unaudited) |
Year
Ended March 31, 2022 |
|||||||
| Operations: | ||||||||
| Net Investment Income | $ | 240,848 | $ | 250,564 | ||||
| Net Realized Gain (Loss) | (732,324 | ) | 548,689 | |||||
| Net Change in Unrealized Appreciation (Depreciation) | (1,285,439 | ) | (442,945 | ) | ||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | (1,776,915 | ) | 356,308 | |||||
| Distributions | — | (1,242,906 | ) | |||||
| Capital Share Transactions:(1) | ||||||||
| Issued | 29,679 | 3,147,630 | ||||||
| Redeemed | (2,571,457 | ) | (4,749,351 | ) | ||||
| Decrease in Net Assets from Capital Share Transactions | (2,541,778 | ) | (1,601,721 | ) | ||||
| Total Decrease in Net Assets | (4,318,693 | ) | (2,488,319 | ) | ||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 10,074,702 | 12,563,021 | ||||||
| End of Year/Period | $ | 5,756,009 | $ | 10,074,702 | ||||
| Share Transactions: | ||||||||
| Issued | — | 100,000 | ||||||
| Redeemed | (100,000 | ) | (150,000 | ) | ||||
| Net Decrease in Shares Outstanding from Share Transactions | (100,000 | ) | (50,000 | ) | ||||
| (1) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
112
Statements of Changes in Net Assets (continued)
| KraneShares CSI China | ||||||||
| Internet ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Year Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022 | |||||||
| Operations: | ||||||||
| Net Investment Income (Loss) | $ | 9,863,096 | $ | (7,133,279 | ) | |||
| Net Realized Loss | (1,469,673,423 | ) | (1,972,722,327 | ) | ||||
| Net Change in Unrealized Appreciation (Depreciation) | 246,827,810 | (3,543,610,616 | ) | |||||
| Net Decrease in Net Assets Resulting from Operations | (1,212,982,517 | ) | (5,523,466,222 | ) | ||||
| Distributions | — | (455,309,639 | ) | |||||
| Capital Share Transactions:(1) | ||||||||
| Issued | 2,130,818,769 | 10,834,164,254 | ||||||
| Redeemed | (1,973,984,839 | ) | (2,278,114,147 | ) | ||||
| Increase in Net Assets from Capital Share Transactions | 156,833,930 | 8,556,050,107 | ||||||
| Total Increase (Decrease) in Net Assets | (1,056,148,587 | ) | 2,577,274,246 | |||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 6,239,534,279 | 3,662,260,033 | ||||||
| End of Year/Period | $ | 5,183,385,692 | $ | 6,239,534,279 | ||||
| Share Transactions: | ||||||||
| Issued | 70,950,000 | 224,400,000 | ||||||
| Redeemed | (71,950,000 | ) | (61,450,000 | ) | ||||
| Net Increase (Decrease) in Shares Outstanding from Share Transactions | (1,000,000 | ) | 162,950,000 | |||||
| (1) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
113
Statements of Changes in Net Assets (continued)
| KraneShares Bosera MSCI China A 50 | ||||||||
| Connect Index ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Year Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022 | |||||||
| Operations: | ||||||||
| Net Investment Income | $ | 9,724,720 | $ | 7,399,447 | ||||
| Net Realized Gain (Loss) | (19,212,260 | ) | 178,885,405 | |||||
| Net Change in Unrealized Appreciation (Depreciation) | (114,169,583 | ) | (237,940,238 | ) | ||||
| Net Decrease in Net Assets Resulting from Operations | (123,657,123 | ) | (51,655,386 | ) | ||||
| Distributions | — | (64,359,649 | ) | |||||
| Capital Share Transactions:(1) | ||||||||
| Issued | 224,471,874 | 91,859,183 | ||||||
| Redeemed | (77,536,994 | ) | (218,814,477 | ) | ||||
| Increase (Decrease) in Net Assets from Capital Share Transactions | 146,934,880 | (126,955,294 | ) | |||||
| Total Increase (Decrease) in Net Assets | 23,277,757 | (242,970,329 | ) | |||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 559,393,402 | 802,363,731 | ||||||
| End of Year/Period | $ | 582,671,159 | $ | 559,393,402 | ||||
| Share Transactions: | ||||||||
| Issued | 6,150,000 | 2,050,000 | ||||||
| Redeemed | (2,200,000 | ) | (5,200,000 | ) | ||||
| Net Increase (Decrease) in Shares Outstanding from Share Transactions | 3,950,000 | (3,150,000 | ) | |||||
| (1) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
114
Statements of Changes in Net Assets (continued)
| KraneShares Bloomberg China | ||||||||
| Bond Inclusion Index ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Year Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022 | |||||||
| Operations: | ||||||||
| Net Investment Income | $ | 137,693 | $ | 212,675 | ||||
| Net Realized Gain (Loss) | (247,867 | ) | 180,221 | |||||
| Net Change in Unrealized Appreciation (Depreciation) | (1,153,515 | ) | 242,411 | |||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | (1,263,689 | ) | 635,307 | |||||
| Distributions | (174,105 | ) | (936,375 | ) | ||||
| Capital Share Transactions:(1) | ||||||||
| Issued | 1,702,922 | 1,752,884 | ||||||
| Increase in Net Assets from Capital Share Transactions | 1,702,922 | 1,752,884 | ||||||
| Total Increase in Net Assets | 265,128 | 1,451,816 | ||||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 13,586,031 | 12,134,215 | ||||||
| End of Year/Period | $ | 13,851,159 | $ | 13,586,031 | ||||
| Share Transactions: | ||||||||
| Issued | 50,000 | 50,000 | ||||||
| Net Increase in Shares Outstanding from Share Transactions | 50,000 | 50,000 | ||||||
| (1) | Includes transaction costs related to creations and redemptions. |
The accompanying notes are an integral part of the financial statements.
115
Statements of Changes in Net Assets (continued)
| KraneShares MSCI All China | ||||||||
| Index ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Year Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022 | |||||||
| Operations: | ||||||||
| Net Investment Income | $ | 150,963 | $ | 320,231 | ||||
| Net Realized Gain (Loss) | (5,932,731 | ) | 651,122 | |||||
| Net Change in Unrealized Appreciation (Depreciation) | 3,568,416 | (6,493,293 | ) | |||||
| Net Decrease in Net Assets Resulting from Operations | (2,213,352 | ) | (5,521,940 | ) | ||||
| Distributions | — | (928,865 | ) | |||||
| Capital Share Transactions:(1) | ||||||||
| Issued | 48,693 | 3,218,338 | ||||||
| Redeemed | (8,941,287 | ) | (2,988,805 | ) | ||||
| Increase (Decrease) in Net Assets from Capital Share Transactions | (8,892,594 | ) | 229,533 | |||||
| Total Decrease in Net Assets | (11,105,946 | ) | (6,221,272 | ) | ||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 16,180,669 | 22,401,941 | ||||||
| End of Year/Period | $ | 5,074,723 | $ | 16,180,669 | ||||
| Share Transactions: | ||||||||
| Issued | — | 100,000 | ||||||
| Redeemed | (400,000 | ) | (100,000 | ) | ||||
| Net Decrease in Shares Outstanding from Share Transactions | (400,000 | ) | — | |||||
| (1) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
116
Statements of Changes in Net Assets (continued)
| KraneShares MSCI One Belt | ||||||||
| One Road Index ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Year Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022 | |||||||
| Operations: | ||||||||
| Net Investment Income | $ | 153,246 | $ | 315,016 | ||||
| Net Realized Gain | 61,085 | 1,131,670 | ||||||
| Net Change in Unrealized Appreciation (Depreciation) | (1,552,828 | ) | (1,396,666 | ) | ||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | (1,338,497 | ) | 50,020 | |||||
| Distributions | — | (297,852 | ) | |||||
| Capital Share Transactions:(1) | ||||||||
| Issued | 10,705 | 2,198 | ||||||
| Redeemed | (2,468,602 | ) | (1,563,737 | ) | ||||
| Decrease in Net Assets from Capital Share Transactions | (2,457,897 | ) | (1,561,539 | ) | ||||
| Total Decrease in Net Assets | (3,796,394 | ) | (1,809,371 | ) | ||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 8,289,688 | 10,099,059 | ||||||
| End of Year/Period | $ | 4,493,294 | $ | 8,289,688 | ||||
| Share Transactions: | ||||||||
| Redeemed | (100,000 | ) | (50,000 | ) | ||||
| Net Decrease in Shares Outstanding from Share Transactions | (100,000 | ) | (50,000 | ) | ||||
| (1) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
117
Statements of Changes in Net Assets (continued)
| KraneShares Emerging Markets Consumer | ||||||||
| Technology Index ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Year Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022 | |||||||
| Operations: | ||||||||
| Net Investment Income (Loss) | $ | 110,300 | $ | (165,301 | ) | |||
| Net Realized Loss | (15,651,718 | ) | (19,277,596 | ) | ||||
| Net Change in Unrealized Appreciation (Depreciation) | 2,764,626 | (31,537,956 | ) | |||||
| Net Decrease in Net Assets Resulting from Operations | (12,776,792 | ) | (50,980,853 | ) | ||||
| Distributions | — | (250,511 | ) | |||||
| Capital Share Transactions:(1) | ||||||||
| Issued | 2,551,692 | 37,293,138 | ||||||
| Redeemed | (15,194,467 | ) | (40,731,527 | ) | ||||
| Decrease in Net Assets from Capital Share Transactions | (12,642,775 | ) | (3,438,389 | ) | ||||
| Total Decrease in Net Assets | (25,419,567 | ) | (54,669,753 | ) | ||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 55,934,523 | 110,604,276 | ||||||
| End of Year/Period | $ | 30,514,956 | $ | 55,934,523 | ||||
| Share Transactions: | ||||||||
| Issued | 150,000 | 1,350,000 | ||||||
| Redeemed | (950,000 | ) | (1,700,000 | ) | ||||
| Net Decrease in Shares Outstanding from Share Transactions | (800,000 | ) | (350,000 | ) | ||||
| (1) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
118
Statements of Changes in Net Assets (continued)
| KraneShares MSCI China Clean | ||||||||
| Technology Index ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Year Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022 | |||||||
| Operations: | ||||||||
| Net Investment Income | $ | 833,481 | $ | 831,350 | ||||
| Net Realized Gain (Loss) | (8,466,738 | ) | 4,228,847 | |||||
| Net Change in Unrealized Appreciation (Depreciation) | (25,438,365 | ) | (23,098,574 | ) | ||||
| Net Decrease in Net Assets Resulting from Operations | (33,071,622 | ) | (18,038,377 | ) | ||||
| Distributions | — | (757,516 | ) | |||||
| Capital Share Transactions:(1) | ||||||||
| Issued | 4,059,084 | 56,347,141 | ||||||
| Redeemed | (8,801,947 | ) | (31,865,907 | ) | ||||
| Increase (Decrease) in Net Assets from Capital Share Transactions | (4,742,863 | ) | 24,481,234 | |||||
| Total Increase (Decrease) in Net Assets | (37,814,485 | ) | 5,685,341 | |||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 146,858,672 | 141,173,331 | ||||||
| End of Year/Period | $ | 109,044,187 | $ | 146,858,672 | ||||
| Share Transactions: | ||||||||
| Issued | 100,000 | 1,250,000 | ||||||
| Redeemed | (250,000 | ) | (750,000 | ) | ||||
| Net Increase (Decrease) in Shares Outstanding from Share Transactions | (150,000 | ) | 500,000 | |||||
| (1) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
119
Statements of Changes in Net Assets (continued)
| KraneShares Electric Vehicles and | ||||||||
| Future Mobility Index ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Year Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022 | |||||||
| Operations: | ||||||||
| Net Investment Income | $ | 1,651,682 | $ | 447,423 | ||||
| Net Realized Gain (Loss) | (23,733,958 | ) | 9,642,454 | |||||
| Net Change in Unrealized Appreciation (Depreciation) | (41,979,506 | ) | (30,971,355 | ) | ||||
| Net Decrease in Net Assets Resulting from Operations | (64,061,782 | ) | (20,881,478 | ) | ||||
| Distributions | — | (21,884,257 | ) | |||||
| Capital Share Transactions:(1) | ||||||||
| Issued | 1,882,085 | 161,175,495 | ||||||
| Redeemed | (23,140,837 | ) | (20,218,326 | ) | ||||
| Increase (Decrease) in Net Assets from Capital Share Transactions | (21,258,752 | ) | 140,957,169 | |||||
| Total Increase (Decrease) in Net Assets | (85,320,534 | ) | 98,191,434 | |||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 296,761,218 | 198,569,784 | ||||||
| End of Year/Period | $ | 211,440,684 | $ | 296,761,218 | ||||
| Share Transactions: | ||||||||
| Issued | 50,000 | 3,300,000 | ||||||
| Redeemed | (650,000 | ) | (500,000 | ) | ||||
| Net Increase (Decrease) in Shares Outstanding from Share Transactions | (600,000 | ) | 2,800,000 | |||||
| (1) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
120
Statements of Changes in Net Assets (continued)
| KraneShares MSCI All China Health | ||||||||
| Care Index ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Year Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022 | |||||||
| Operations: | ||||||||
| Net Investment Income (Loss) | $ | 656,270 | $ | (85,433 | ) | |||
| Net Realized Loss | (19,280,589 | ) | (1,397,169 | ) | ||||
| Net Change in Unrealized Appreciation (Depreciation) | (13,717,431 | ) | (57,562,032 | ) | ||||
| Net Decrease in Net Assets Resulting from Operations | (32,341,750 | ) | (59,044,634 | ) | ||||
| Distributions | — | (21,078,396 | ) | |||||
| Capital Share Transactions:(1) | ||||||||
| Issued | 31,585 | 44,149,338 | ||||||
| Redeemed | (15,405,123 | ) | (41,679,374 | ) | ||||
| Increase (Decrease) in Net Assets from Capital Share Transactions | (15,373,538 | ) | 2,469,964 | |||||
| Total Decrease in Net Assets | (47,715,288 | ) | (77,653,066 | ) | ||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 136,810,985 | 214,464,051 | ||||||
| End of Year/Period | $ | 89,095,697 | $ | 136,810,985 | ||||
| Share Transactions: | ||||||||
| Issued | — | 1,300,000 | ||||||
| Redeemed | (750,000 | ) | (1,150,000 | ) | ||||
| Net Increase (Decrease) in Shares Outstanding from Share Transactions | (750,000 | ) | 150,000 | |||||
| (1) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
121
Statements of Changes in Net Assets (continued)
| KraneShares Asia Pacific High | ||||||||
| Income Bond ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Year Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022 | |||||||
| Operations: | ||||||||
| Net Investment Income | $ |
1,372,366 |
$ | 1,006,947 | ||||
| Net Realized Loss | (3,033,630 | ) | (3,985,978 | ) | ||||
| Net Change in Unrealized Appreciation (Depreciation) | (755,063 | ) | (1,285,892 | ) | ||||
| Net Decrease in Net Assets Resulting from Operations | (2,416,327 | ) | (4,264,923 | ) | ||||
| Distributions | (977,851 | ) | (1,214,239 | ) | ||||
| Return of Capital | — | (192,065 | ) | |||||
| Capital Share Transactions:(1) | ||||||||
| Issued | 1,453,697 | 29,733,209 | ||||||
| Redeemed | (5,402,535 | ) | (7,312,822 | ) | ||||
| Increase (Decrease) in Net Assets from Capital Share Transactions | (3,948,838 | ) | 22,420,387 | |||||
| Total Increase (Decrease) in Net Assets | (7,343,016 | ) | 16,749,160 | |||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 26,535,141 | 9,785,981 | ||||||
| End of Year/Period | $ | 19,192,125 | $ | 26,535,141 | ||||
| Share Transactions: | ||||||||
| Issued | 50,000 | 900,000 | ||||||
| Redeemed | (200,000 | ) | (250,000 | ) | ||||
| Net Increase (Decrease) in Shares Outstanding from Share Transactions | (150,000 | ) | 650,000 | |||||
| (1) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
122
Statements of Changes in Net Assets (continued)
| KraneShares Emerging Markets | ||||||||
| Healthcare Index ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Year Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022 | |||||||
| Operations: | ||||||||
| Net Investment Income | $ | 3,607 | $ | 11,822 | ||||
| Net Realized Loss | (233,214 | ) | (171,867 | ) | ||||
| Net Change in Unrealized Appreciation (Depreciation) | (274,171 | ) | (878,739 | ) | ||||
| Net Decrease in Net Assets Resulting from Operations | (503,778 | ) | (1,038,784 | ) | ||||
| Distributions | — | (10,783 | ) | |||||
| Capital Share Transactions:(1) | ||||||||
| Issued | — | 2,217 | ||||||
| Redeemed | — | (1,492,577 | ) | |||||
| Decrease in Net Assets from Capital Share Transactions | — | (1,490,360 | ) | |||||
| Total Decrease in Net Assets | (503,778 | ) | (2,539,927 | ) | ||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 2,468,835 | 5,008,762 | ||||||
| End of Year/Period | $ | 1,965,057 | $ | 2,468,835 | ||||
| Share Transactions: | ||||||||
| Redeemed | — | (50,000 | ) | |||||
| Net Decrease in Shares Outstanding from Share Transactions | — | (50,000 | ) | |||||
| (1) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
123
Statements of Changes in Net Assets (continued)
| KraneShares MSCI Emerging | ||||||||
| Markets ex China Index ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Year Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022 | |||||||
| Operations: | ||||||||
| Net Investment Income | $ | 489,803 | $ | 720,486 | ||||
| Net Realized Gain (Loss) | (1,308,969 | ) | 335,656 | |||||
| Net Change in Unrealized Appreciation (Depreciation) | (5,109,352 | ) | (851,279 | ) | ||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | (5,928,518 | ) | 204,863 | |||||
| Distributions | — | (1,341,512 | ) | |||||
| Capital Share Transactions:(1) | ||||||||
| Issued | 31,593 | 9,310,517 | ||||||
| Redeemed | (13,153,943 | ) | (6,466,320 | ) | ||||
| Increase (Decrease) in Net Assets from Capital Share Transactions | (13,122,350 | ) | 2,844,197 | |||||
| Total Increase (Decrease) in Net Assets | (19,050,868 | ) | 1,707,548 | |||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 32,698,696 | 30,991,148 | ||||||
| End of Year/Period | $ | 13,647,828 | $ | 32,698,696 | ||||
| Share Transactions: | ||||||||
| Issued | — | 300,000 | ||||||
| Redeemed | (500,000 | ) | (200,000 | ) | ||||
| Net Increase (Decrease) in Shares Outstanding from Share Transactions | (500,000 | ) | 100,000 | |||||
| (1) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
124
Statements of Changes in Net Assets (continued)
| KraneShares MSCI China ESG Leaders | ||||||||
| Index ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Year Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022 | |||||||
| Operations: | ||||||||
| Net Investment Income | $ | 88,478 | $ | 141,014 | ||||
| Net Realized Loss | (1,754,392 | ) | (413,967 | ) | ||||
| Net Change in Unrealized Appreciation (Depreciation) | 325,605 | (2,750,597 | ) | |||||
| Net Decrease in Net Assets Resulting from Operations | (1,340,309 | ) | (3,023,550 | ) | ||||
| Distributions | — | (219,611 | ) | |||||
| Capital Share Transactions:(1) | ||||||||
| Issued | 12,606 | 2,806 | ||||||
| Redeemed | (2,245,452 | ) | (1,660,518 | ) | ||||
| Decrease in Net Assets from Capital Share Transactions | (2,232,846 | ) | (1,657,712 | ) | ||||
| Total Decrease in Net Assets | (3,573,155 | ) | (4,900,873 | ) | ||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 7,937,654 | 12,838,527 | ||||||
| End of Year/Period | $ | 4,364,499 | $ | 7,937,654 | ||||
| Share Transactions: | ||||||||
| Redeemed | (100,000 | ) | (50,000 | ) | ||||
| Net Decrease in Shares Outstanding from Share Transactions | (100,000 | ) | (50,000 | ) | ||||
| (1) | Commenced operations on July 28, 2020. | |
| (2) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
125
Statements of Changes in Net Assets (continued)
| KraneShares CICC China 5G & | ||||||||
| Semiconductor Index ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Year Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022 | |||||||
| Operations: | ||||||||
| Net Investment Income | $ | 117,747 | $ | 140,986 | ||||
| Net Realized Loss | (1,855,420 | ) | (1,232,367 | ) | ||||
| Net Change in Unrealized Appreciation (Depreciation) | (3,418,896 | ) | 2,467,447 | |||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | (5,156,569 | ) | 1,376,066 | |||||
| Capital Share Transactions:(1) | ||||||||
| Issued | — | 7,848,791 | ||||||
| Reinvestment of Distributions | 1,365 | — | ||||||
| Redeemed | (3,330,344 | ) | (106,409,148 | ) | ||||
| Decrease in Net Assets from Capital Share Transactions | (3,328,979 | ) | (98,560,357 | ) | ||||
| Total Decrease in Net Assets | (8,485,548 | ) | (97,184,291 | ) | ||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 21,695,860 | 118,880,151 | ||||||
| End of Year/Period | $ | 13,210,312 | $ | 21,695,860 | ||||
| Share Transactions: | ||||||||
| Issued | — | 300,000 | ||||||
| Redeemed | (200,000 | ) | (4,350,000 | ) | ||||
| Net Decrease in Shares Outstanding from Share Transactions | (200,000 | ) | (4,050,000 | ) | ||||
| (1) | Commenced operations on November 23, 2020. | |
| (2) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
126
Statements of Changes in Net Assets (continued)
| KraneShares CICC China Consumer | ||||||||
| Leaders Index ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Year Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022 | |||||||
| Operations: | ||||||||
| Net Investment Income | $ | 140,302 | $ | 330,472 | ||||
| Net Realized Loss | (11,119,860 | ) | (7,146,359 | ) | ||||
| Net Change in Unrealized Appreciation (Depreciation) | 9,415,950 | (6,860,658 | ) | |||||
| Net Decrease in Net Assets Resulting from Operations | (1,563,608 | ) | (13,676,545 | ) | ||||
| Distributions | — | (267,348 | ) | |||||
| Capital Share Transactions:(1) | ||||||||
| Issued | 292,067 | 19,432,252 | ||||||
| Redeemed | (35,908,906 | ) | (15,178,158 | ) | ||||
| Increase (Decrease) in Net Assets from Capital Share Transactions | (35,616,839 | ) | 4,254,094 | |||||
| Total Decrease in Net Assets | (37,180,447 | ) | (9,689,799 | ) | ||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 44,529,474 | 54,219,273 | ||||||
| End of Year/Period | $ | 7,349,027 | $ | 44,529,474 | ||||
| Share Transactions: | ||||||||
| Issued | — | 800,000 | ||||||
| Redeemed | (1,850,000 | ) | (650,000 | ) | ||||
| Net Increase (Decrease) in Shares Outstanding from Share Transactions | (1,850,000 | ) | 150,000 | |||||
| (1) | Commenced operations on December 8, 2020. | |
| (2) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
127
Statements of Changes in Net Assets (continued)
| KraneShares SSE STAR Market 50 | ||||||||
| Index ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Year Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022 | |||||||
| Operations: | ||||||||
| Net Investment Loss | $ | (29,850 | ) | $ | (597,970 | ) | ||
| Net Realized Loss | (7,299,955 | ) | (5,609,501 | ) | ||||
| Net Change in Unrealized Appreciation (Depreciation) | (6,359,826 | ) | (2,007,586 | ) | ||||
| Net Decrease in Net Assets Resulting from Operations | (13,689,631 | ) | (8,215,057 | ) | ||||
| Capital Share Transactions:(1) | ||||||||
| Issued | (18,361 | ) | 25,541,153 | |||||
| Redeemed | (7,884,669 | ) | (45,373,706 | ) | ||||
| Decrease in Net Assets from Capital Share Transactions | (7,903,030 | ) | (19,832,553 | ) | ||||
| Total Decrease in Net Assets | (21,592,661 | ) | (28,047,610 | ) | ||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 65,674,149 | 93,721,759 | ||||||
| End of Year/Period | $ | 44,081,488 | $ | 65,674,149 | ||||
| Share Transactions: | ||||||||
| Issued | — | 1,000,000 | ||||||
| Redeemed | (450,000 | ) | (1,950,000 | ) | ||||
| Net Decrease in Shares Outstanding from Share Transactions | (450,000 | ) | (950,000 | ) | ||||
| (1) | Commenced operations on January 26, 2021. | |
| (2) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
128
Statements of Changes in Net Assets (continued)
| KraneShares Hang Seng | ||||||||
| TECH Index ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Period Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022(1) | |||||||
| Operations: | ||||||||
| Net Investment Income | $ | 15,344 | $ | 2,441 | ||||
| Net Realized Loss | (835,164 | ) | (620,063 | ) | ||||
| Net Change in Unrealized Appreciation (Depreciation) | (2,287,797 | ) | (1,540,772 | ) | ||||
| Net Decrease in Net Assets Resulting from Operations | (3,107,617 | ) | (2,158,394 | ) | ||||
| Capital Share Transactions:(2) | ||||||||
| Issued | 7,525,609 | 7,728,841 | ||||||
| Increase in Net Assets from Capital Share Transactions | 7,525,609 | 7,728,841 | ||||||
| Total Increase in Net Assets | 4,417,992 | 5,570,447 | ||||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 5,570,447 | — | ||||||
| End of Year/Period | $ | 9,988,439 | $ | 5,570,447 | ||||
| Share Transactions: | ||||||||
| Issued | 550,001 | 400,001 | ||||||
| Net Increase in Shares Outstanding from Share Transactions | 550,001 | 400,001 | ||||||
| (1) | Commenced operations on June 8, 2021. | |
| (2) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
129
Statements of Changes in Net Assets (continued)
| KraneShares China Innovation ETF | ||||||||
| Period Ended | ||||||||
| September 30, | Period Ended | |||||||
| 2022 | March 31, | |||||||
| (unaudited) | 2022(1) | |||||||
| Operations: | ||||||||
| Net Investment Loss | $ | (1,846 | ) | $ | (688 | ) | ||
| Net Realized Gain | 18,826 | 115,589 | ||||||
| Net Change in Unrealized Appreciation (Depreciation) | (345,531 | ) | (752,572 | ) | ||||
| Net Decrease in Net Assets Resulting from Operations | (328,551 | ) | (637,671 | ) | ||||
| Distributions | — | (4,286 | ) | |||||
| Capital Share Transactions:(2) | ||||||||
| Issued | — | 3,479,534 | ||||||
| Redeemed | (1,011,132 | ) | — | |||||
| Increase (Decrease) in Net Assets from Capital Share Transactions | (1,011,132 | ) | 3,479,534 | |||||
| Total Increase (Decrease) in Net Assets | (1,339,683 | ) | 2,837,577 | |||||
| Net Assets: | ||||||||
| Beginning of Year/Period | 2,837,577 | — | ||||||
| End of Year/Period | $ | 1,497,894 | $ | 2,837,577 | ||||
| Share Transactions: | ||||||||
| Issued | — | 150,002 | ||||||
| Redeemed | (50,000 | ) | — | |||||
| Net Increase (Decrease) in Shares Outstanding from Share Transactions | (50,000 | ) | 150,002 | |||||
| (1) | Commenced operations on October 5, 2021. | |
| (2) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
130
Statements of Changes in Net Assets (concluded)
| KraneShares | ||||
| S&P Pan Asia | ||||
| Dividend Aristocrats | ||||
| Index ETF | ||||
| Period Ended | ||||
| September 30, | ||||
| 2022 | ||||
| (Unaudited)(1) | ||||
| Operations: | ||||
| Net Investment Income | $ | 9,855 | ||
| Net Realized Gain | 235 | |||
| Net Change in Unrealized Appreciation (Depreciation) | (243,473 | ) | ||
| Net Decrease in Net Assets Resulting from Operations | (233,383 | ) | ||
| Capital Share Transactions:(2) | ||||
| Issued | 2,500,050 | |||
| Increase in Net Assets from Capital Share Transactions | 2,500,050 | |||
| Total Increase in Net Assets | 2,266,667 | |||
| Net Assets: | ||||
| Beginning of Period | — | |||
| End of Period | $ | 2,266,667 | ||
| Share Transactions: | ||||
| Issued | 100,002 | |||
| Net Increase in Shares Outstanding from Share Transactions | 100,002 | |||
| (1) | Commenced operations on September 15, 2022. | |
| (2) | Includes transaction costs related to creations and redemptions. |
Amounts designated as “—” are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
131
Selected Per Share Data & Ratios
For the Periods Ended September 30, 2022 (Unaudited)
For the Years/Periods Ended March 31 (unless otherwise indicated)
For a Share Outstanding Throughout Each Period
| Net
Asset Value, Beginning of Period ($) |
Net Investment Income (Loss) ($)* |
Net
Realized and Unrealized Gain (Loss) on Investments ($) |
Total from Operations ($) |
Distribution from Net Investment Income ($) |
Distribution from Capital Gains ($) |
Return of Capital ($) | ||||||||
| KraneShares CICC China Leaders 100 Index ETF | ||||||||||||||
| 2022*** | 28.78 | 0.86 | (6.62) | (5.76) | — | — | — | |||||||
| 2022 | 31.41 | 0.62 | 0.30 | 0.92 | (0.63) | (2.92) | — | |||||||
| 2021 | 25.03 | 0.80 | 6.41 | 7.21 | (0.83) | — | — | |||||||
| 2020 | 28.00 | 0.06 | (2.98) | (2.92) | (0.05) | — | — | |||||||
| 2019 | 33.88 | 0.66 | (2.09) | (1.43) | (0.68) | (3.77) | — | |||||||
| 2018(1) | 34.06 | 0.24 | 7.22 | 7.46 | (0.30) | (7.34) | — | |||||||
| KraneShares CSI China Internet ETF | ||||||||||||||
| 2022*** | 29.52 | 0.04 | (4.92) | (4.88) | — | — | — | |||||||
| 2022 | 75.59 | (0.05) | (43.44) | (43.49) | — | (2.58) | — | |||||||
| 2021 | 45.19 | (0.28) | 30.90 | 30.62 | (0.22) | — | — | |||||||
| 2020 | 47.04 | (0.02) | (1.79) | (1.81) | (0.04) | — | — | |||||||
| 2019 | 61.11 | 0.10 | (12.90) | (12.80) | (0.01) | (1.26) | — | |||||||
| 2018(1) | 42.21 | (0.19) | 19.43 | 19.24 | (0.34) | — | — | |||||||
| KraneShares Bosera MSCI China A 50 Connect Index ETF | ||||||||||||||
| 2022*** | 37.05 | 0.57 | (7.03) | (6.46) | — | — | — | |||||||
| 2022 | 43.97 | 0.43 | (3.41) | (2.98) | (0.49) | (3.45) | — | |||||||
| 2021 | 29.51 | 0.30 | 14.46 | 14.76 | (0.30) | — | — | |||||||
| 2020 | 31.88 | 0.47 | (2.34) | (1.87) | (0.50) | — | — | |||||||
| 2019 | 34.47 | 0.60 | (2.27) | (1.67) | (0.52) | (0.40) | — | |||||||
| 2018(1) | 28.38 | 0.21 | 6.22 | 6.43 | (0.18) | (0.16) | — | |||||||
| KraneShares Bloomberg China Bond Inclusion Index ETF | ||||||||||||||
| 2022*** | 33.97 | 0.31 | (3.11) | (2.80) | (0.39) | — | — | |||||||
| 2022 | 34.67 | 0.55 | 1.12 | 1.67 | (2.37) | — | — | |||||||
| 2021 | 32.31 | 0.60 | 2.57 | 3.17 | (0.81) | — | — | |||||||
| 2020 | 34.22 | 0.81 | (1.75) | (0.94) | — | — | (0.97) | |||||||
| 2019 | 37.23 | 1.31 | (2.29) | (0.98) | (1.95) | — | (0.08) | |||||||
| 2018(1) | 32.82 | 1.07 | 3.34 | 4.41 | — | — | — | |||||||
| * | 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. Excludes effects of standard creation and redemption transaction fees associated with creation units. |
| *** | For the six-month period ended September 30, 2022. |
| † | 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. |
| ^ | The ratios of expenses and net investment income/(loss) to Average Net Assets reflect the expenses and net investment income/ (loss), respectively, for the year/period as reported in the Statements of Operations and do not reflect the Fund’s proportionate share of the income and expenses of the money market funds. |
The accompanying notes are an integral part of the financial statements.
132
| 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 Waivers) (%)~ |
Ratio of Net Investment Income (Loss) to Average Net Assets (%) |
Portfolio Turnover (%) | |||||||
| — | 23.02 | (20.01) | 5,756 | 0.69† | 0.69† | 6.58† | 55†† | |||||||
| (3.55) | 28.78 | 2.77 | 10,075 | 0.68 | 0.68 | 2.00 | 167 | |||||||
| (0.83) | 31.41 | 28.90 | 12,563 | 0.69 | 0.69 | 2.68 | 143 | |||||||
| (0.05) | 25.03 | (10.45) | 16,273 | 0.69 | 0.69 | 0.23 | 126 | |||||||
| (4.45) | 28.00 | (0.62) | 2,800 | 0.70 | 0.70 | 2.21 | 181 | |||||||
| (7.64) | 33.88 | 22.57 | 5,082 | 0.71 | 0.71 | 0.64 | 105 | |||||||
| — | 24.64 | (16.53) | 5,183,386 | 0.69†(2) | 0.69† | 0.30† | 37†† | |||||||
| (2.58) | 29.52 | (57.99) | 6,239,534 | 0.69(2) | 0.69 | (0.12) | 60 | |||||||
| (0.22) | 75.59 | 67.77 | 3,662,260 | 0.70(2) | 0.70 | (0.39) | 89 | |||||||
| (0.04) | 45.19 | (3.85) | 2,313,638 | 0.73(2) | 0.73 | (0.05) | 33 | |||||||
| (1.27) | 47.04 | (20.44) | 2,074,505 | 0.75(2) | 0.76 | 0.20 | 70 | |||||||
| (0.34) | 61.11 | 45.62 | 1,628,622 | 0.70 | 0.70 | (0.33) | 29 | |||||||
| — | 30.59 | (17.44) | 582,671 | 0.54† | 0.79† | 3.25† | 25†† | |||||||
| (3.94) | 37.05 | (7.96) | 559,393 | 0.59 | 0.79 | 0.97 | 89 | |||||||
| (0.30) | 43.97 | 50.00 | 802,364 | 0.59 | 0.79 | 0.74 | 35 | |||||||
| (0.50) | 29.51 | (5.98) | 507,508 | 0.59 | 0.80 | 1.52 | 91 | |||||||
| (0.92) | 31.88 | (4.01) | 604,035 | 0.60 | 0.80 | 2.05 | 106 | |||||||
| (0.34) | 34.47 | 22.68 | 353,324 | 0.60 | 0.80 | 0.61 | 52 | |||||||
| (0.39) | 30.78 | (8.29) | 13,851 | 0.48^† | 0.68^† | 1.90^† | 31†† | |||||||
| (2.37) | 33.97 | 4.89 | 13,586 | 0.42 | 0.68 | 1.59 | 159 | |||||||
| (0.81) | 34.67 | 9.91 | 12,134 | 0.57^ | 0.69^ | 1.80^ | — | |||||||
| (0.97) | 32.31 | (2.75) | 12,924 | 0.57^ | 0.70^ | 2.46^ | — | |||||||
| (2.03) | 34.22 | (2.52) | 18,822 | 0.58^ | 0.70^ | 3.76^ | — | |||||||
| — | 37.23 | 13.44 | 13,030 | 0.77^(3) | 0.89^ | 3.10^ | — |
| ~ | During the periods, certain fees were waived. (See Note 4 in the Notes to Financial Statements). |
| (1) | March 29, 2018 represents the last business day of the Fund’s reporting period in 2018. |
| (2) | During the period ended September 30, 2022 and the years ended March 31, 2022, 2021, 2020, and 2019 the Fund participated in securities lending, generating $2,208,558, $3,419,311, $3,716,046, $5,794,534, and $9,746,130, respectively, in security lending income. The expense ratios include $209,510, $337,352, $376,498, $579,613, and $968,632, respectively, in security lending fees paid to the Adviser. Had these fees been excluded, the expense ratios would have been 0.68%, 0.68%, 0.69%, 0,69%, and 0.69%, respectively. |
| (3) | The expenses during the year include a one-time, non-recurring expense. Had this expense not been included, the expense ratio for the period would have been 0.59%. |
The accompanying notes are an integral part of the financial statements.
133
Financial Highlights (continued)
Selected Per Share Data & Ratios
For the Periods Ended September 30, 2022 (Unaudited)
For the Years/Periods Ended March 31 (unless otherwise indicated)
For a Share Outstanding Throughout Each Period
| Net Asset Value, Beginning of Period ($) |
Net Investment Income (Loss) ($)* |
Net Realized and Unrealized Gain (Loss) on Investments ($) |
Total from Operations ($) |
Distribution from Net Investment Income ($) |
Distribution from Capital Gains ($) |
Return of Capital ($) | ||||||||
| KraneShares MSCI All China Index ETF | ||||||||||||||
| 2022*** | 24.89 | 0.37 | (4.96) | (4.59) | — | — | — | |||||||
| 2022 | 34.46 | 0.47 | (8.71) | (8.24) | (0.40) | (0.93) | — | |||||||
| 2021 | 23.53 | 0.22 | 11.06 | 11.28 | (0.35) | — | — | |||||||
| 2020 | 25.48 | 0.36 | (1.93) | (1.57) | (0.38) | — | — | |||||||
| 2019 | 26.96 | 0.18 | (1.23) | (1.05) | (0.43) | — | — | |||||||
| 2018(1) | 22.56 | 0.45 | 4.28 | 4.73 | (0.33) | — | — | |||||||
| KraneShares MSCI One Belt One Road Index ETF | ||||||||||||||
| 2022*** | 27.63 | 0.58 | (5.74) | (5.16) | — | — | — | |||||||
| 2022 | 28.85 | 0.95 | (1.18) | (0.23) | (0.99) | — | — | |||||||
| 2021 | 17.76 | 0.48 | 11.16 | 11.64 | (0.55) | — | — | |||||||
| 2020 | 23.69 | 0.70 | (5.58) | (4.88) | (1.05) | — | — | |||||||
| 2019 | 25.64 | 0.48 | (1.82) | (1.34) | (0.61) | — | — | |||||||
| 2018(1)(2) | 25.00 | 0.08 | 0.59(3) | 0.67 | (0.03) | — | — | |||||||
| KraneShares Emerging Markets Consumer Technology Index ETF | ||||||||||||||
| 2022*** | 18.04 | 0.04 | (4.81) | (4.77) | — | — | — | |||||||
| 2022 | 32.06 | (0.05) | (13.90) | (13.95) | (0.01) | (0.06) | — | |||||||
| 2021 | 19.55 | 0.11 | 13.14 | 13.25 | (0.74) | — | — | |||||||
| 2020 | 22.94 | 0.10 | (3.07) | (2.97) | (0.42) | — | — | |||||||
| 2019 | 26.48 | — | (3.54) | (3.54) | — | — | — | |||||||
| 2018(1)(5) | 25.00 | (0.03) | 1.51(3) | 1.48 | — | — | — | |||||||
| KraneShares MSCI China Clean Technology Index ETF | ||||||||||||||
| 2022*** | 36.71 | 0.21 | (8.60) | (8.39) | — | — | — | |||||||
| 2022 | 40.34 | 0.21 | (3.65) | (3.44) | (0.19) | — | — | |||||||
| 2021 | 16.60 | (0.28) | 24.02 | 23.74 | —# | — | — | |||||||
| 2020 | 20.28 | 0.70 | (3.29) | (2.59) | (1.09) | — | — | |||||||
| 2019 | 23.86 | 0.39 | (3.61) | (3.22) | (0.36) | — | — | |||||||
| 2018(1)(6) | 25.00 | (0.09) | (1.05) | (1.14) | — | — | — | |||||||
| KraneShares Electric Vehicles and Future Mobility Index ETF | ||||||||||||||
| 2022*** | 39.57 | 0.23 | (9.16) | (8.93) | — | — | — | |||||||
| 2022 | 42.25 | 0.08 | 0.39(3) | 0.47 | (0.52) | (2.63) | — | |||||||
| 2021 | 19.02 | 0.08 | 23.21 | 23.29 | (0.06) | — | — | |||||||
| 2020 | 20.64 | 0.33 | (1.51) | (1.18) | (0.44) | — | — | |||||||
| 2019 | 23.30 | 0.21 | (2.62) | (2.41) | (0.25) | — | — | |||||||
| 2018(1)(7) | 25.00 | 0.02 | (1.72) | (1.70) | — | — | — | |||||||
| * | 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. Excludes effects of standard creation and redemption transaction fees associated with creation units. |
| *** | For the six-month period ended September 30, 2022. |
| † | 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. |
| ^ | The ratios of expenses and net investment income/(loss) to Average Net Assets reflect the expenses and net investment income/ (loss), respectively, for the year/period as reported in the Statements of Operations and do not reflect the Fund’s proportionate share of the income and expenses from investments in other investment companies. |
| # | Amount represents less than $0.005 per share. |
The accompanying notes are an integral part of the financial statements.
134
| Total from Distributions ($) |
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 Waivers) (%)~ |
Ratio of Net Investment Income (Loss) to Average Net Assets (%) |
Portfolio Turnover (%) | |||||||
| — | 20.30 | (18.44) | 5,075 | 0.49† | 0.69† | 3.16† | 4†† | |||||||
| (1.33) | 24.89 | (24.35) | 16,181 | 0.48 | 0.68 | 1.49 | 18 | |||||||
| (0.35) | 34.46 | 47.97 | 22,402 | 0.49 | 0.69 | 0.67 | 45 | |||||||
| (0.38) | 23.53 | (6.30) | 7,059 | 0.49 | 0.69 | 1.47 | 7 | |||||||
| (0.43) | 25.48 | (3.52) | 6,370 | 0.67 | 0.69 | 0.74 | 62 | |||||||
| (0.33) | 26.96 | 20.99 | 2,696 | 0.63^ | 0.72^ | 1.75^ | 3 | |||||||
| — | 22.47 | (18.68) | 4,493 | 0.78† | 0.78† | 4.53† | 17†† | |||||||
| (0.99) | 27.63 | (1.11) | 8,290 | 0.78 | 0.78 | 3.12 | 36 | |||||||
| (0.55) | 28.85 | 65.82 | 10,099 | 0.79 | 0.79 | 2.07 | 39 | |||||||
| (1.05) | 17.76 | (21.78) | 7,105 | 0.80 | 0.80 | 3.03 | 30 | |||||||
| (0.61) | 23.69 | (4.94) | 21,322 | 0.79 | 0.79 | 2.05 | 72 | |||||||
| (0.03) | 25.64 | 2.67 | 32,048 | 0.79^†(4) | 0.80^† | 0.52^† | 1†† | |||||||
| — | 13.27 | (26.44) | 30,515 | 0.60† | 0.80† | 0.49† | 48†† | |||||||
| (0.07) | 18.04 | (43.57) | 55,935 | 0.59 | 0.79 | (0.17) | 97 | |||||||
| (0.74) | 32.06 | 67.85 | 110,604 | 0.59 | 0.79 | 0.36 | 112 | |||||||
| (0.42) | 19.55 | (13.29) | 22,485 | 0.81 | 0.81 | 0.46 | 56 | |||||||
| — | 22.94 | (13.37) | 28,680 | 0.80 | 0.80 | (0.02) | 119 | |||||||
| — | 26.48 | 5.92 | 23,828 | 0.79†(4) | 0.79† | (0.23)† | —†† | |||||||
| — | 28.32 | (22.85) | 109,044 | 0.79† | 0.79† | 1.19† | 21†† | |||||||
| (0.19) | 36.71 | (8.61) | 146,859 | 0.78 | 0.78 | 0.48 | 62 | |||||||
| — | 40.34 | 143.03 | 141,173 | 0.78 | 0.78 | (0.65) | 164 | |||||||
| (1.09) | 16.60 | (13.17) | 1,661 | 0.79 | 0.79 | 3.81 | 53 | |||||||
| (0.36) | 20.28 | (13.28) | 4,056 | 0.79 | 0.80 | 1.92 | 147 | |||||||
| — | 23.86 | (4.56) | 7,158 | 0.78†(4) | 0.79† | (0.78)† | 36†† | |||||||
| — | 30.64 | (22.57) | 211,441 | 0.71† | 0.71† | 1.30† | 47†† | |||||||
| (3.15) | 39.57 | 0.04 | 296,761 | 0.70 | 0.70 | 0.17 | 114 | |||||||
| (0.06) | 42.25 | 122.46 | 198,570 | 0.70 | 0.70 | 0.21 | 81 | |||||||
| (0.44) | 19.02 | (6.15) | 17,116 | 0.72 | 0.72 | 1.57 | 53 | |||||||
| (0.25) | 20.64 | (10.19) | 33,026 | 0.70 | 0.70 | 0.98 | 74 | |||||||
| — | 23.30 | (6.80) | 26,798 | 0.70†(8) | 0.70† | 0.43† | 18†† |
| ~ | During the periods, certain fees were waived. (See Note 4 in the Notes to Financial Statements). |
| (1) | March 29, 2018 represents the last business day of the Fund’s reporting period in 2018. |
| (2) | The Fund commenced operations on September 7, 2017. |
| (3) | Realized and unrealized gains and losses per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period. |
| (4) | The expense ratio includes interest expense. Had this expense been excluded, the ratio would have been 0.78%. |
| (5) | The Fund commenced operations on October 11, 2017. |
| (6) | The Fund commenced operations on October 12, 2017. |
| (7) | The Fund commenced operations on January 18, 2018. |
| (8) | The expense ratio includes interest expense. Had this expense been excluded, the ratio would have been 0.69%. |
The accompanying notes are an integral part of the financial statements.
135
Financial Highlights (continued)
Selected Per Share Data & Ratios
For the Periods Ended September 30, 2022 (Unaudited)
For the Years/Periods Ended March 31 (unless otherwise indicated)
For a Share Outstanding Throughout Each 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 ($) |
Distribution from Capital Gains ($) |
Return of Capital ($) | ||||||||
| KraneShares MSCI All China Health Care Index ETF | ||||||||||||||
| 2022*** | 23.79 | 0.12 | (6.09) | (5.97) | — | — | — | |||||||
| 2022 | 38.30 | (0.02) | (10.44) | (10.46) | — | (4.05) | — | |||||||
| 2021 | 23.78 | (0.09) | 14.61 | 14.52 | —# | — | — | |||||||
| 2020 | 22.29 | 0.07 | 1.48 | 1.55 | (0.06) | — | — | |||||||
| 2019 | 26.65 | 0.02 | (4.30) | (4.28) | (0.04) | (0.04) | — | |||||||
| 2018(1)(2) | 25.00 | (0.03) | 1.68 | 1.65 | — | — | — | |||||||
| KraneShares Asia Pacific High Income Bond ETF | ||||||||||||||
| 2022*** | 29.48 | 1.51 | (4.29) | (2.78) | (1.11) | — | — | |||||||
| 2022 | 39.14 | 1.78 | (9.26) | (7.48) | (1.88) | — | (0.30) | |||||||
| 2021 | 37.32 | 2.10 | 2.44 | 4.54 | (2.58) | (0.14) | — | |||||||
| 2020 | 40.73 | 2.08 | (3.49) | (1.41) | (1.81) | (0.19) | — | |||||||
| 2019(3) | 40.00 | 1.55 | 0.67 | 2.22 | (1.31) | —# | (0.18) | |||||||
| KraneShares Emerging Markets Healthcare Index ETF | ||||||||||||||
| 2022*** | 24.69 | 0.04 | (5.08) | (5.04) | — | — | — | |||||||
| 2022 | 33.39 | 0.09 | (8.68) | (8.59) | (0.11) | — | — | |||||||
| 2021 | 20.85 | (0.02) | 12.57 | 12.55 | (0.01) | — | — | |||||||
| 2020 | 22.38 | 0.01 | (1.16) | (1.15) | (0.37) | — | (0.01) | |||||||
| 2019(4) | 25.00 | (0.04) | (2.58) | (2.62) | —# | — | — | |||||||
| KraneShares MSCI Emerging Markets ex China Index ETF | ||||||||||||||
| 2022*** | 29.73 | 0.56 | (7.54) | (6.98) | — | — | — | |||||||
| 2022 | 30.99 | 0.79 | (0.56) | 0.23 | (0.73) | (0.76) | — | |||||||
| 2021 | 18.41 | 0.55 | 12.53 | 13.08 | (0.50) | — | — | |||||||
| 2020(5) | 25.00 | 0.60 | (6.45) | (5.85) | (0.74) | — | — | |||||||
| KraneShares MSCI China ESG Leaders Index ETF | ||||||||||||||
| 2022*** | 22.68 | 0.30 | (5.52) | (5.22) | — | — | — | |||||||
| 2022 | 32.10 | 0.39 | (9.18) | (8.79) | (0.33) | (0.30) | — | |||||||
| 2021(6) | 25.00 | (0.07) | 7.32 | 7.25 | — | (0.15) | — | |||||||
| KraneShares CICC China 5G & Semiconductor Index ETF | ||||||||||||||
| 2022*** | 19.72 | 0.11 | (5.15) | (5.04) | — | — | — | |||||||
| 2022 | 23.08 | 0.04 | (3.40) | (3.36) | — | — | — | |||||||
| 2021(7) | 25.00 | (0.06) | (1.86) | (1.92) | — | — | — | |||||||
| KraneShares CICC China Consumer Leaders Index ETF | ||||||||||||||
| 2022*** | 19.79 | 0.21 | (1.63) | (1.42) | — | — | — | |||||||
| 2022 | 25.82 | 0.15 | (6.06) | (5.91) | (0.12) | — | — | |||||||
| 2021(8) | 25.00 | (0.05) | 0.87 | 0.82 | — | — | — | |||||||
| KraneShares SSE STAR Market 50 Index ETF | ||||||||||||||
| 2022*** | 18.76 | (0.01) | (4.30) | (4.31) | — | — | — | |||||||
| 2022 | 21.06 | (0.14) | (2.16) | (2.30) | — | — | — | |||||||
| 2021(9) | 25.00 | (0.03) | (3.91) | (3.94) | — | — | — | |||||||
| * | 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. Excludes effects of standard creation and redemption transaction fees associated with creation units. |
| *** | For the six-month period ended September 30, 2022. |
| # | Amount represents less than $0.005 per share. |
| † | Annualized. |
| †† | Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers. |
The accompanying notes are an integral part of the financial statements.
136
| Total from Distributions ($) |
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 Waivers) (%)~ |
Ratio of Net Investment Income (Loss) to Average Net Assets (%) |
Portfolio Turnover (%) | |||||||
| — | 17.82 | (25.09) | 89,096 | 0.65† | 0.79† | 1.15† | 6†† | |||||||
| (4.05) | 23.79 | (28.88) | 136,811 | 0.65 | 0.79 | (0.04) | 44 | |||||||
| — | 38.30 | 61.06 | 214,464 | 0.65 | 0.79 | (0.25) | 45 | |||||||
| (0.06) | 23.78 | 6.95 | 32,110 | 0.69 | 0.79 | 0.32 | 101 | |||||||
| (0.08) | 22.29 | (15.99) | 39,004 | 0.79 | 0.79 | 0.08 | 71 | |||||||
| — | 26.65 | 6.60 | 3,998 | 0.82† | 0.82† | (0.82)† | —†† | |||||||
| (1.11) | 25.59 | (9.64) | 19,192 | 0.69† | 0.69† | 10.82† | 49†† | |||||||
| (2.18) | 29.48 | (19.73) | 26,535 | 0.68 | 0.68 | 5.33 | 150 | |||||||
| (2.72) | 39.14 | 12.32 | 9,786 | 0.69 | 0.69 | 5.32 | 53 | |||||||
| (2.00) | 37.32 | (3.72) | 11,197 | 0.70 | 0.70 | 5.12 | 70 | |||||||
| (1.49) | 40.73 | 5.72 | 12,220 | 0.69† | 0.69† | 5.13† | 38†† | |||||||
| — | 19.65 | (20.41) | 1,965 | 0.79† | 0.79† | 0.33† | 20†† | |||||||
| (0.11) | 24.69 | (25.77) | 2,469 | 0.81 | 0.81 | 0.29 | 28 | |||||||
| (0.01) | 33.39 | 60.18 | 5,009 | 0.80 | 0.80 | (0.05) | 73 | |||||||
| (0.38) | 20.85 | (5.25) | 1,043 | 0.80 | 0.80 | 0.04 | 61 | |||||||
| — | 22.38 | (10.47) | 4,476 | 0.79† | 0.79† | (0.34)† | 57†† | |||||||
| — | 22.75 | (23.48) | 13,648 | 0.24† | 0.59† | 4.25† | 2†† | |||||||
| (1.49) | 29.73 | 0.57 | 32,699 | 0.23 | 0.58 | 2.52 | 23 | |||||||
| (0.50) | 30.99 | 71.19 | 30,991 | 0.30 | 0.58 | 1.90 | 19 | |||||||
| (0.74) | 18.41 | (24.31) | 1,841 | 0.50† | 0.60† | 2.54† | 5†† | |||||||
| — | 17.46 | (23.02) | 4,364 | 0.58† | 0.58† | 2.83† | 26†† | |||||||
| (0.63) | 22.68 | (27.63) | 7,938 | 0.59 | 0.59 | 1.30 | 57 | |||||||
| (0.15) | 32.10 | 29.05 | 12,839 | 0.58† | 0.58† | (0.35)† | 30†† | |||||||
| — | 14.68 | (25.56) | 13,210 | 0.65† | 0.79† | 1.28† | 14†† | |||||||
| — | 19.72 | (14.56) | 21,696 | 0.65 | 0.79 | 0.17 | 58 | |||||||
| — | 23.08 | (7.68) | 118,880 | 0.64† | 0.78† | (0.64)† | 59†† | |||||||
| — | 18.37 | (7.18) | 7,349 | 0.69† | 0.69† | 2.07† | 31†† | |||||||
| (0.12) | 19.79 | (22.98) | 44,529 | 0.68 | 0.68 | 0.63 | 62 | |||||||
| — | 25.82 | 3.28 | 54,219 | 0.68† | 0.68† | (0.63)† | 50†† | |||||||
| — | 14.45 | (22.97) | 44,081 | 0.89† | 0.89† | (0.11)† | 22†† | |||||||
| — | 18.76 | (10.92) | 65,674 | 0.88 | 0.88 | (0.57) | 78 | |||||||
| — | 21.06 | (15.76) | 93,722 | 0.88† | 0.88† | (0.88)† | 12†† |
| ~ | During the periods, certain fees were waived. (See Note 4 in the Notes to Financial Statements). |
| (1) | March 29, 2018 represents the last business day of the Fund’s reporting period in 2018. |
| (2) | The Fund commenced operations on January 31, 2018. |
| (3) | The Fund commenced operations on June 26, 2018. |
| (4) | The Fund commenced operations on August 29, 2018. |
| (5) | The Fund commenced operations on April 12, 2019. |
| (6) | The Fund commenced operations on July 28, 2020. |
| (7) | The Fund commenced operations on November 23, 2020. |
| (8) | The Fund commenced operations on December 8, 2020. |
| (9) | The Fund commenced operations on January 26, 2021. |
The accompanying notes are an integral part of the financial statements.
137
Financial Highlights (concluded)
Selected Per Share Data & Ratios
For the Periods Ended September 30, 2022 (Unaudited)
For the Years/Periods Ended March 31 (unless otherwise indicated)
For a Share Outstanding Throughout Each Period
| Net Asset Value, Beginning of Period ($) |
Net Investment Income (Loss) ($)* |
Net Realized and Unrealized Loss on Investments ($) |
Total from Operations ($) |
Distribution from Net Investment Income ($) |
Return of Capital ($) | |||||||
| KraneShares Hang Seng TECH Index ETF | ||||||||||||
| 2022*** | 13.93 | 0.03 | (3.45) | (3.42) | — | — | ||||||
| 2022(1) | 25.00 | 0.01 | (11.08) | (11.07) | — | — | ||||||
| KraneShares China Innovation ETF | ||||||||||||
| 2022*** | 18.92 | (0.01) | (3.93) | (3.94) | — | — | ||||||
| 2022(2) | 25.00 | (0.01) | (6.03) | (6.04) | (0.04) | — | ||||||
| KraneShares S&P Pan Asia Dividend Aristocrats Index ETF | ||||||||||||
| 2022***(3) | 25.00 | 0.11 | (2.44) | (2.33) | — | — | ||||||
| * | 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. Excludes effects of standard creation and redemption transaction fees associated with creation units. |
| *** | For the six-month period ended September 30, 2022. All ratios for the period have been annualized, except for the Total Return. |
| † | Annualized. |
The accompanying notes are an integral part of the financial statements.
138
| 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 Waivers) (%)~ |
Ratio of Net Investment Income (Loss) to Average Net Assets (%) |
Portfolio Turnover (%) | |||||||
| — | 10.51 | (24.55) | 9,988 | 0.68† | 0.68† | 0.40† | 21†† | |||||||
| — | 13.93 | (44.28) | 5,570 | 0.68† | 0.68† | 0.09† | 60†† | |||||||
| — | 14.98 | (20.82) | 1,498 | 0.16† | 0.25† | (0.16)† | 2†† | |||||||
| (0.04) | 18.92 | (24.19) | 2,838 | 0.25† | 0.25† | (0.06)† | 4†† | |||||||
| — | 22.67 | (9.32) | 2,267 | 0.69† | 0.69† | 9.95† | —†† |
| †† | 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. |
| ~ | During the periods, certain fees were waived. (See Note 4 in the Notes to Financial Statements). |
| (1) | The Fund commenced operations on June 8, 2021. |
| (2) | The Fund commenced operations on October 5, 2021. |
| (3) | The Fund commenced operations on September 15, 2022. |
The accompanying notes are an integral part of the financial statements.
139
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 (the “Investment Company Act”), as an open-end management investment company. As of September 30, 2022, the Trust had thirty-two operational series. The financial statements herein and the related notes pertain to the following 20 series: KraneShares CICC China Leaders 100 Index ETF, KraneShares CSI China Internet ETF, KraneShares Bosera MSCI China A 50 Connect Index ETF, KraneShares Bloomberg China Bond Inclusion Index ETF, KraneShares MSCI All China Index ETF, KraneShares MSCI One Belt One Road Index ETF, KraneShares Emerging Markets Consumer Technology Index ETF, KraneShares MSCI China Clean Technology Index ETF, KraneShares Electric Vehicles and Future Mobility Index ETF, KraneShares MSCI All China Health Care Index ETF, KraneShares Asia Pacific High Income Bond ETF, KraneShares Emerging Markets Healthcare Index ETF, KraneShares MSCI Emerging Markets ex China Index ETF, KraneShares MSCI China ESG Leaders Index ETF, KraneShares CICC China 5G & Semiconductor Index ETF, KraneShares CICC China Consumer Leaders Index ETF, KraneShares SSE STAR Market 50 Index ETF, KraneShares Hang Seng TECH Index ETF, KraneShares China Innovation ETF and KraneShares S&P Pan Asia Dividend Aristocrats Index ETF (each, a “Fund” and collectively, the “Funds”). KraneShares Bosera MSCI China A 50 Connect Index ETF, KraneShares MSCI All China Index ETF, KraneShares MSCI Emerging Markets ex China Index ETF, KraneShares Emerging Markets Consumer Technology Index ETF, KraneShares MSCI One Belt One Road Index ETF and KraneShares Electric Vehicles and Future Mobility Index ETF are diversified Funds. All other Funds are non-diversified Funds, as defined under Section 5(b)(1) of the Investment Company Act. Krane Funds Advisors, LLC (“Krane” or 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 Adviser may use sub-advisers (each, a “Sub-Adviser” or collectively, the “Sub-Advisers”) to perform the day-to-day management of the Funds.
China International Capital Corporation (USA) Holdings Inc., a wholly-owned, indirect subsidiary of China International Capital Corporation Limited owns a majority stake in Krane. As of September 30, 2022, Central Huijin Investment Limited, a mainland Chinese-domiciled entity, and HKSCC Nominees Limited, held approximately 40.1% and 39.4%, respectively, of the shares of China International Capital Corporation Limited. Central Huijin Investment Limited is a wholly-owned subsidiary of China Investment Corporation, which is a mainland Chinese sovereign wealth fund. KFA One Holdings, LLC, located at 280 Park Avenue 32nd Floor, New York, New York, 10017, holds the remaining equity interests in Krane and Jonathan Krane, through his equity interests in KFA One Holdings, LLC, beneficially owns more than 10% of the equity interests in Krane.
Shares of the Funds are listed and traded on the NYSE Arca, Inc. (“NYSE Arca”) (the “Exchange”). Market prices for Fund shares (“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 or 100,000 Shares or multiples thereof, called “Creation Units”. This does not mean, however, that individual investors will be able to redeem and purchase Shares directly with the series of the Trust. Only Authorized Participants can redeem and purchase Creation Units of Shares directly. Each Fund will issue and redeem Shares for a basket of securities and/or a balancing cash amount. Individual shares trade in the secondary market at market prices that change throughout the day.
140
Notes to Financial Statements (Unaudited) (continued)
The investment objective of each of the following Funds is to seek to provide a total return that (before fees and expenses) tracks the performance of its respective index listed below (each, an “Underlying Index”):
| KraneShares Funds | Index | |
|
KraneShares CICC China Leaders 100 Index ETF KraneShares CSI China Internet ETF KraneShares Bosera MSCI China A 50 Connect Index ETF KraneShares Bloomberg China Bond Inclusion Index ETF KraneShares MSCI All China Index ETF KraneShares MSCI One Belt One Road Index ETF KraneShares Emerging Markets Consumer Technology Index ETF KraneShares MSCI China Clean Technology ETF KraneShares Electric Vehicles and Future Mobility Index ETF KraneShares MSCI All China Health Care Index ETF KraneShares Emerging Markets Healthcare Index ETF KraneShares MSCI Emerging Markets ex China Index ETF KraneShares MSCI China ESG Leaders Index ETF KraneShares CICC China 5G & Semiconductor Index ETF KraneShares CICC China Consumer Leaders Index ETF KraneShares SSE STAR Market 50 Index ETF KraneShares Hang Seng TECH Index ETF KraneShares S&P Pan Asia Dividend Aristocrats Index ETF |
CSI CICC Select 100 Index CSI Overseas China Internet Index MSCI China A 50 Connect Index Bloomberg China Inclusion Focused Bond Index MSCI China All Shares Index MSCI Global China Infrastructure Exposure Index Solactive Emerging Markets Consumer Technology Index MSCI China IMI Environment 10/40 Index Bloomberg Electric Vehicles Index MSCI China All Shares Health Care 10/40 Index Solactive Emerging Markets Healthcare Index MSCI Emerging Markets ex China Index MSCI China ESG Leaders 10/40 Index CICC China 5G and Semiconductor Leaders Index CICC China Consumer Leaders Index SSE Science and Technology Innovation Board 50 Index Hang Seng TECH Index S&P Pan Asia Dividend Aristocrats® Index |
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed by the Funds. The Funds are investment companies that apply the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board (“FASB”).
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.
SECURITY VALUATION — The NAV per share of each Fund is computed by dividing the value of the net assets of a Fund (i.e., the value of its total assets less total liabilities and withholdings) by the total number of shares of a Fund outstanding, rounded to the nearest cent. Expenses and fees, including without limitation, the management, administration and distribution fees, are accrued daily and taken into account for purposes of determining NAV. The NAV per share for each Fund normally
141
Notes to Financial Statements (Unaudited) (continued)
is calculated by the Administrator (as defined below) and determined as of the regularly scheduled close of normal trading on each day that the NYSE is scheduled to be open for business (normally 4:00 p.m., Eastern Time). Any assets or liabilities denominated in currencies other than the U.S. dollar are converted into U.S. dollars at the current market rates on the date of valuation as quoted by one or more sources.
Securities listed on a securities exchange (i.e., exchange-traded equity securities), 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 by independent pricing agents at the last reported sale price on the primary exchange or market (foreign or domestic) on which they are traded (or at the time as of which the Fund’s NAV is calculated if a security’s exchange is normally open at that time). If there is no such reported sale, such securities are valued at the most recently reported bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. If a security price cannot be obtained from an independent, third-party pricing agent, the Fund seeks to obtain bid and ask prices from two broker-dealers who make a market in the portfolio instrument and determines the average of the two.
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. The exchange rates used for valuation are captured as of the close of the London Stock Exchange each day normally at 4:00 p.m. Greenwich Mean Time.
The value of a swap contract is equal to the obligation (or rights) under the swap contract, which will generally be equal to the net amounts to be paid or received under the contract based upon the relative values of the positions held by each party to the contract as determined by the applicable independent, third-party pricing agent. Exchange-traded options are valued at the last reported sales price on the exchange on which they are listed. If there is no such reported sale on the valuation date, long positions are valued at the most recent bid price, and short positions are valued at the most recent ask price. Over-the-counter (“OTC”) options are valued based upon prices determined by the applicable independent, third party pricing agent. Futures are valued at the settlement price established by the board of trade on which they are traded. Foreign currency forward contracts are valued at the current day’s interpolated foreign exchange rate, as calculated using the current day’s spot rate and the 30-, 60-, 90- and 180-day forward rates provided by an independent pricing agent. As of and during the period ended September 30, 2022, the Funds did not hold options, swaps or foreign currency forward contracts.
Investments in open-end investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end investment companies that trade on an exchange are valued in the same manner as other exchange-traded equity securities (described above).
Securities issued by a wholly-owned subsidiary of a Fund will be valued at the subsidiary’s net asset value, which will be determined using the same pricing policies and procedures applicable to the Fund.
142
Notes to Financial Statements (Unaudited) (continued)
Investments for which market prices are not ‘‘readily available,’’ or are not deemed to reflect current market values, or are debt securities where no evaluated price is available from third-party pricing agents pursuant to established methodologies, are fair valued in accordance with the Trust’s valuation policies and procedures approved by the Board. Some of the more common reasons that may necessitate that a security be valued using ‘‘fair value’’ pricing may include, but are not limited to: the security’s trading has been halted or suspended; the security’s primary trading market is temporarily closed; or the security has not been traded for an extended period of time. A Fund will fair value certain of the foreign securities held by a Fund each day a Fund calculates its NAV.
In addition, a Fund may fair value its securities if an event that may materially affect the value of a Fund’s securities that trade outside of the United States (a ‘‘Significant Event’’) has occurred between the time of the security’s last close and the time that a Fund calculates its NAV. A Significant Event may relate to a single issuer or to an entire market sector, country or region. Events that may be Significant Events may include: government actions, natural disasters, armed conflict, acts of terrorism and significant market fluctuations. If Krane becomes aware of a Significant Event that has occurred with respect to a portfolio instrument or group of portfolio instruments after the closing of the exchange or market on which the portfolio instrument or portfolio instruments principally trade, but before the time at which a Fund calculates its NAV, it will notify the Administrator and may request that an ad hoc meeting of the Fair Valuation Committee be called.
With respect to trade-halted securities, the Adviser typically will fair value a trade-halted security by adjusting the security’s last market close price by the security’s sector performance, as measured by a predetermined index, unless Krane through Fair Valuation Committee determines to make additional adjustments. Certain foreign securities exchanges have mechanisms in place that confine one day’s price movement in an individual security to a pre-determined price range based on that day’s opening price (“Collared Securities”). Fair value determinations for Collared Securities will generally be capped based on any applicable pre-determined “limit down” or “limit up” prices established by the relevant foreign securities exchange. As an example, China A-Shares can only be plus or minus ten percent in one day of trading in the relevant mainland China equity market. As a result, the fair value price determination on a given day will generally be capped plus or minus ten percent.
Fair value pricing involves subjective judgments and it is possible that a fair value determination for a security is materially different than the value that could actually be realized upon the sale of the security or that another fund that uses market quotations or its own fair value procedures to price the same securities. In addition, fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Underlying Index. This may adversely affect a Fund’s ability to track its Underlying Index.
Trading in securities on many foreign exchanges is normally completed before the close of business on each Business Day (a “Business Day”, as used herein, is any day on which the Exchange is open for business). In addition, securities trading in a particular country or countries may not take place on each Business Day or may take place on days that are not Business Days. Changes in valuations on certain securities may occur at times or on days on which a Fund’s NAV is not calculated and on which Fund shares do not trade and sales and redemptions of shares do not occur. As a result, the value of a Fund’s portfolio securities and the net asset value of its shares may change on days when share purchases or sales cannot occur.
143
Notes to Financial Statements (Unaudited) (continued)
Fund shares are purchased or sold on a national securities exchange at market prices, which may be higher or lower than NAV. Transactions in Fund shares will be priced at NAV only if shares are purchased or redeemed directly from a Fund in Creation Units. No secondary sales will be made to brokers or dealers at concession by the Distributor or by a Fund. Purchases and sales of shares in the secondary market, which will not involve a Fund, will be subject to customary brokerage commissions and charges.
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, broker quotes, 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 details of the investment classification, refer to each Fund’s Schedule of Investments.
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 (the “Code”), and to distribute annually all or 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.
144
Notes to Financial Statements (Unaudited) (continued)
As of September 30, 2022, management of the Funds has reviewed all open tax years since inception and concluded that there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months.
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 is recorded, net of any applicable withholding tax, on the ex-dividend date, or for certain foreign securities, when the information becomes available to the Funds. Interest income is recognized on the accrual basis from the settlement date and includes the amortization of premiums and the accretion of discount calculated using the effective interest method.
Dividend income received from affiliated funds is recognized on the ex-dividend date and is recorded as income distributions in the Statement of Operations. Capital gain distributions received from affiliated funds are recognized on ex-dividend date and are recorded on the Statement of Operations as such. Costs used in determining realized gains and losses on the sales of affiliated funds are on the basis of specific identification. See details on the Statements of Operations.
FOREIGN CURRENCY — 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. The Funds report certain foreign-currency-related transactions as components of realized gains for financial reporting purposes, whereas such components are treated as ordinary income for Federal income tax purposes.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS — Each Fund, except for the KraneShares Asia Pacific High Income Bond ETF and the KraneShares Bloomberg China Bond Inclusion Index ETF, intends to pay out dividends, if any, at least annually; each of the KraneShares Asia Pacific High Income Bond ETF and the KraneShares Bloomberg China Bond Inclusion Index ETF intend to pay out dividends, if any, at least monthly. The Funds distribute their net investment income at least annually. Any net realized capital gains are distributed annually. All distributions are recorded on the ex-dividend date.
CASH OVERDRAFT CHARGES — Per the terms of an agreement with Brown Brothers Harriman & Co. (“BBH”), the Funds’ Custodian, if a Fund has a cash overdraft on a given day, it will be assessed an overdraft charge of the BBH Base Rate plus 2.00%. Cash overdraft charges are included in “Interest Expense” on the Statements of Operations.
SECURITIES LENDING — The Funds may lend securities from their portfolios to brokers, dealers and other financial institutions. In connection with such loans, a Fund remains the beneficial owner of the loaned securities and continues to receive payments in amounts approximately equal to the interest, dividends or other distributions payable on the loaned securities. A Fund also has the right to terminate a loan at any time. A Fund does not have the right to vote on securities while they are
145
Notes to Financial Statements (Unaudited) (continued)
on loan. Loans of portfolio securities will not exceed 33 1/3% of the value of a Fund’s total assets (including the value of all assets received as collateral for the loan). A Fund will receive collateral in an amount equal to at least 100% of the current market value of the loaned securities. If the collateral consists of cash, a Fund will reinvest the cash and pay the borrower a pre-negotiated fee or “rebate” from any return earned on the investment. Should the borrower of the securities fail financially, a Fund may experience delays in recovering the loaned securities or exercising its rights in the collateral. In a loan transaction, a Fund will also bear the risk of any decline in value of securities acquired with cash collateral. Krane and a sub-adviser are subject to potential conflicts of interest because the compensation paid to them increases in connection with any net income received by a Fund from a securities lending program. Each Fund pays Krane 10% of any net monthly income received from the investment of cash collateral and loan fees received from borrowers in respect of each securities loan (net of any amounts paid to the custodian and/or securities lending agent or rebated to borrowers) (see Note 4).
The following table discloses the securities on loan as of September 30, 2022:
| Market Value | Cash Collateral for | |||||||
| KraneShares Funds | Securities on Loan | Securities on Loan | ||||||
| KraneShares CSI China Internet ETF | $ | 79,478,249 | $ | 84,950,213 | ||||
| KraneShares Emerging Markets Consumer Technology Index ETF | 1,932,924 | 2,456,263 | ||||||
| KraneShares Electric Vehicles and Future Mobility Index ETF | 17,249,982 | 18,509,024 | ||||||
| KraneShares MSCI All China Health Care Index ETF | 1,236,285 | 1,299,955 | ||||||
CREATION UNITS — The Funds issue and redeem Shares at NAV and only in large blocks of Shares (each block of Shares for a Fund is a Creation Unit of 50,000 Shares, 100,000 Shares, or multiples thereof). In its discretion, the Trust reserves the right to increase or decrease the number of each Fund’s shares that constitute a Creation Unit.
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 Depository Trust Company (‘‘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 a 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 when buying or selling Shares. If a Creation Unit is purchased or redeemed for cash, a higher transaction fee may be charged.
146
Notes to Financial Statements (Unaudited) (continued)
The following table discloses Creation Unit breakdown for the period ended September 30, 2022:
| Standard | Standard | Maximum | ||||||||||||||||||
| Creation | Transaction | Value at | Transaction | Variable | ||||||||||||||||
| Unit | Fee – | September 30, | Fee – | Transaction | ||||||||||||||||
| KraneShares Funds | Shares | Subscriptions | 2022 | Redemptions | Fee* | |||||||||||||||
| KraneShares CICC China Leaders 100 Index ETF | 50,000 | $ | 1,700 | $ | 1,151,000 | $ | 1,700 | 2.00 | % | |||||||||||
| KraneShares CSI China Internet ETF | 50,000 | 500 | 1,232,000 | 500 | 2.00 | % | ||||||||||||||
| KraneShares Bosera MSCI China A 50 Connect Index ETF | 50,000 | 850 | 1,529,500 | 850 | 2.00 | % | ||||||||||||||
| KraneShares Bloomberg China Bond Inclusion Index ETF | 50,000 | 500 | 1,539,000 | 500 | 2.00 | % | ||||||||||||||
| KraneShares MSCI All China Index ETF | 50,000 | 4,250 | 1,015,000 | 4,250 | 2.00 | % | ||||||||||||||
| KraneShares MSCI One Belt One Road Index ETF | 50,000 | 3,600 | 1,123,500 | 3,600 | 2.00 | % | ||||||||||||||
| KraneShares Emerging Markets Consumer Technology Index ETF | 50,000 | 1,500 | 663,500 | 1,500 | 2.00 | % | ||||||||||||||
| KraneShares MSCI China Clean Technology Index ETF | 50,000 | 800 | 1,416,000 | 800 | 2.00 | % | ||||||||||||||
| KraneShares Electric Vehicles and Future Mobility Index ETF | 50,000 | 800 | 1,532,000 | 800 | 2.00 | % | ||||||||||||||
| KraneShares MSCI All China Health Care Index ETF | 50,000 | 1,200 | 891,000 | 1,200 | 2.00 | % | ||||||||||||||
| KraneShares Asia Pacific High Income Bond ETF | 50,000 | 600 | 1,279,500 | 600 | 2.00 | % | ||||||||||||||
| KraneShares Emerging Markets Healthcare Index ETF | 50,000 | 2,100 | 982,500 | 2,100 | 2.00 | % | ||||||||||||||
| KraneShares MSCI Emerging Markets ex China Index ETF | 100,000 | 15,000 | 2,275,000 | 15,000 | 2.00 | % | ||||||||||||||
| KraneShares MSCI China ESG Leaders Index ETF | 50,000 | 2,100 | 873,000 | 2,100 | 2.00 | % | ||||||||||||||
| KraneShares CICC China 5G & Semiconductor Index ETF | 50,000 | 500 | 734,000 | 500 | 2.00 | % | ||||||||||||||
| KraneShares CICC China Consumer Leaders Index ETF | 50,000 | 500 | 918,500 | 500 | 2.00 | % | ||||||||||||||
| KraneShares SSE STAR Market 50 Index ETF | 50,000 | 2,250 | 722,500 | 2,250 | 2.00 | % | ||||||||||||||
| KraneShares Hang Seng TECH Index ETF | 50,000 | 550 | 525,500 | 550 | 2.00 | % | ||||||||||||||
| KraneShares China Innovation ETF | 50,000 | 50 | 749,000 | 50 | 2.00 | % | ||||||||||||||
| KraneShares S& P Pan Asia Dividend Aristocrats Index ETF | 50,000 | 1,800 | 1,133,500 | 1,800 | 2.00 | % | ||||||||||||||
| * | As a percentage of the Creation Unit(s) purchased/redeemed. |
The Adviser may adjust the transaction fees from time to time based on actual experience.
147
Notes to Financial Statements (Unaudited) (continued)
CASH AND CASH EQUIVALENTS — Idle cash and currency balances may be swept into various overnight sweep accounts and are classified as cash equivalents on the Statement of Assets and Liabilities. These amounts, at times, may exceed United States federally insured limits. Amounts swept are available on the next business day.
3. RELATED PARTY TRANSACTIONS
INVESTMENT ADVISORY AGREEMENT — The Adviser serves as investment adviser to each Fund pursuant to an Investment Advisory Agreement between the Trust on behalf of each Fund and the Adviser (the “Agreement”). Under the Agreement, Krane is responsible for reviewing, supervising and administering each Fund’s investment program and the general management and administration of the Trust. In addition to these services, to the extent a Fund engages in securities lending, Krane will: (i) determine which securities are available for loan and notify the securities lending agent for a Fund (the “Agent”), (ii) monitor the Agent’s activities to ensure that securities loans are effected in accordance with Krane’s instructions and in accordance with applicable procedures and guidelines adopted by the Board, (iii) make recommendations to the Board regarding the Fund’s participation in securities lending; (iv) prepare appropriate periodic reports for, and seek appropriate periodic approvals from, the Board with respect to securities lending activities, (v) respond to Agent inquiries concerning the Agent’s activities, and (vi) such other related duties as Krane deems necessary or appropriate. The Board of Trustees of the Trust supervises Krane and establishes policies that Krane must follow in its management activities.
The Agreement requires the Adviser to pay all operating expenses of the Funds, except: (a) interest and taxes (including, but not limited to, income, excise, transaction, transfer and withholding taxes); (b) expenses of the Funds incurred with respect to the acquisition and disposition of portfolio securities and the execution of portfolio transactions, including brokerage commissions and short sale dividend or interest expense; (c) expenses incurred in connection with any distribution plan adopted by the Trust in compliance with Rule 12b-1 under the Investment Company Act, including distribution fees; (d) “Acquired Fund Fees and Expenses” (as defined by Form N-1A under the Investment Company Act); (e) litigation expenses; (f) the compensation payable to the Adviser under the Agreement; (g) compensation and expenses of the Independent Trustees (including any fees of independent legal counsel to the Independent Trustees); and (h) any expenses determined to be extraordinary expenses by the Board. In addition, under the Agreement, while the fees and expenses related to the Funds’ securities lending-related activities reduce the gross revenues and income of the Funds from such activities, they are not fees and expenses for which Krane is responsible.
Each Agreement provides that each Fund pays a unitary (or unified) fee to the Adviser for advisory and management services provided to the Fund, subject to the exceptions noted herein. In this context, there exists a risk that a Trust service provider will seek recourse against the Trust if it is not timely paid by Krane for the fees and expenses for which it is responsible, which could materially adversely affect the Funds. Pursuant to the 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. In addition, as compensation for the services provided by the Adviser in connection with any securities lending-related activities, each Fund pays the Adviser 10% of the monthly investment income received from the investment of cash collateral and loan fees received from borrowers in respect to securities loans (net of any amounts paid to the custodian and/or securities lending agent or rebated to borrowers), included on the Statements of Operations as “Security Lending Fees”.
148
Notes to Financial Statements (Unaudited) (continued)
| Management | ||
| KraneShares Funds | Fee | |
| KraneShares CICC China Leaders 100 Index ETF | 0.68% | |
| KraneShares CSI China Internet ETF | 0.68% | |
| KraneShares Bosera MSCI China A 50 Connect Index ETF | 0.78% | |
| KraneShares Bloomberg China Bond Inclusion Index ETF | 0.68% | |
| KraneShares MSCI All China Index ETF | 0.68% | |
| KraneShares MSCI One Belt One Road Index ETF | 0.78% | |
| KraneShares Emerging Markets Consumer Technology Index ETF | 0.78% | |
| KraneShares MSCI China Clean Technology Index ETF | 0.78% | |
| KraneShares Electric Vehicles and Future Mobility Index ETF | 0.68% | |
| KraneShares MSCI All China Health Care Index ETF | 0.78% | |
| KraneShares Asia Pacific High Income Bond ETF | 0.68% | |
| KraneShares Emerging Markets Healthcare Index ETF | 0.78% | |
| KraneShares MSCI Emerging Markets ex China Index ETF | 0.58% | |
| KraneShares MSCI China ESG Leaders Index ETF | 0.58% | |
| KraneShares CICC China 5G & Semiconductor Index ETF | 0.78% | |
| KraneShares CICC China Consumer Leaders Index ETF | 0.68% | |
| KraneShares Hang Seng TECH Index ETF | 0.68% | |
| KraneShares SSE STAR Market 50 Index ETF | 0.88% | |
| KraneShares China Innovation ETF | 0.25% | |
| KraneShares S&P Pan Asia Dividend Aristocrats Index ETF | 0.68% |
The Adviser bears all of its own costs associated with providing these advisory services.
Pursuant to the terms of Fee Waiver Agreements, Krane has contractually agreed to waive its management fee for the below listed Funds by the following amounts of the Fund’s average daily net assets until August 1, 2023. The Fee Waiver Agreements may only be terminated prior thereto by the Board. In addition, the Fee Waiver Agreements will terminate if the Investment Advisory Agreement for a Fund is terminated.
| Fee Waiver | ||
| KraneShares Funds | Rate | |
| KraneShares Bosera MSCI China A 50 Connect Index ETF | 0.23% | |
| KraneShares Bloomberg China Bond Inclusion Index ETF | 0.20% | |
| KraneShares MSCI All China Index ETF | 0.20% | |
| KraneShares Emerging Markets Consumer Technology Index ETF | 0.20% | |
| KraneShares MSCI All China Health Care Index ETF | 0.14% | |
| KraneShares MSCI Emerging Markets ex China Index ETF | 0.35% | |
| KraneShares CICC China 5G & Semiconductor Index ETF | 0.14% |
SUB-ADVISORY AGREEMENT — Bosera Asset Management (International) Co., Ltd. (“Bosera”), operating out of Hong Kong, serves as the Sub-Adviser to the KraneShares Bosera MSCI China A 50 Connect Index ETF and KraneShares SSE STAR Market 50 Index ETF and is responsible for the day-to-day management of the Funds, subject to the supervision by the Adviser and the Board. For the services Bosera provides to KraneShares Bosera MSCI China A 50 Connect Index ETF, the Adviser pays Bosera a fee equal to 50% of the net revenue the Adviser receives from the Fund.
149
Notes to Financial Statements (Unaudited) (continued)
For the services Bosera provides to KraneShares SSE STAR Market 50 Index ETF, the Adviser pays Bosera a twelve basis points (0.12%) sub-advisory fee based upon the monthly average assets under management of KraneShares SSE STAR Market 50 Index ETF.
Nikko Asset Management Americas Inc. (“Nikko”) serves as the investment sub-adviser to KraneShares Asia Pacific High Income Bond ETF. Nikko is responsible for the day-to-day investment management of the Fund, subject to the supervision of Krane and the Board. Nikko delegates to its affiliate Nikko Asset Management Asia, Ltd. (“Nikko Asia”), a registered investment adviser with the SEC, certain of its responsibilities for the management of the Fund. Krane has entered into a Sub-Advisory Agreement with Nikko pursuant to which Krane has agreed to pay Nikko 36.77% of the sum of: (i) the total gross advisory fee due to the Adviser from the Fund under the terms of the Advisory Agreement minus (ii) any applicable fee waivers from time to time entered into between the Fund and the Adviser.
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 Investment Company 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 period ended September 30, 2022, no fees were charged under the Plan. Fees would only be charged under the Plan upon approval by the Board.
ADMINISTRATOR, CUSTODIAN AND TRANSFER AGENT — SEI Investments Global Funds Services (the “Administrator”) serves as the Funds’ Administrator pursuant to an Administration Agreement. BBH serves as the Funds’ Custodian and Transfer Agent pursuant to a Custodian and Transfer Agent Agreement.
4. INVESTMENT TRANSACTIONS
For the period ended September 30, 2022, the purchases and sales of investments in securities excluding in-kind transactions, long-term U.S. Government and short-term securities were:
| Sales and | ||||||||
| KraneShares Funds | Purchases | Maturities | ||||||
| KraneShares CICC China Leaders 100 Index ETF | $ | 4,091,756 | $ | 6,402,751 | ||||
| KraneShares CSI China Internet ETF | 2,500,022,001 | 2,421,075,132 | ||||||
| KraneShares Bosera MSCI China A 50 Connect Index ETF | 304,441,661 | 149,834,845 | ||||||
| KraneShares Bloomberg China Bond Inclusion Index ETF | 8,293,904 | 3,569,262 | ||||||
| KraneShares MSCI All China Index ETF | 373,538 | 8,377,304 | ||||||
| KraneShares MSCI One Belt One Road Index ETF | 1,088,100 | 2,368,375 | ||||||
| KraneShares Emerging Markets Consumer Technology Index ETF | 22,070,048 | 30,320,540 | ||||||
| KraneShares MSCI China Clean Technology Index ETF | 28,924,302 | 32,208,173 | ||||||
| KraneShares Electric Vehicles and Future Mobility Index ETF | 119,591,802 | 124,695,431 | ||||||
| KraneShares MSCI All China Health Care Index ETF | 6,964,252 | 20,803,283 | ||||||
| KraneShares Asia Pacific High Income Bond ETF | 7,448,526 | 10,604,623 | ||||||
| KraneShares Emerging Markets Healthcare Index ETF | 448,127 | 439,296 | ||||||
| KraneShares MSCI Emerging Markets ex China Index ETF | 360,609 | 10,244,529 | ||||||
150
Notes to Financial Statements (Unaudited) (continued)
| Sales and | ||||||||
| KraneShares Funds | Purchases | Maturities | ||||||
| KraneShares MSCI China ESG Leaders Index ETF | $ | 1,689,773 | $ | 3,682,816 | ||||
| KraneShares CICC China 5G & Semiconductor Index ETF | 2,465,403 | 5,713,419 | ||||||
| KraneShares CICC China Consumer Leaders Index ETF | 4,040,119 | 39,541,348 | ||||||
| KraneShares SSE STAR Market 50 Index ETF | 12,040,509 | 20,129,554 | ||||||
| KraneShares Hang Seng TECH Index ETF | 9,487,418 | 1,573,898 | ||||||
| KraneShares China Innovation ETF | 52,245 | 57,029 | ||||||
| KraneShares S&P Pan Asia Dividend Aristocrats Index ETF | 1,213,383 | — | ||||||
For the period ended September 30, 2022, there were no purchases or sales of long-term U.S. government securities for the Funds.
For the period ended September 30, 2022, in-kind transactions associated with creations and redemptions were:
| Sales and | Realized | |||||||||||
| KraneShares Funds | Purchases | Maturities | Gain/(Loss) | |||||||||
| KraneShares CSI China Internet ETF | $ | 653,700,261 | $ | 582,600,653 | $ | 693,548 | ||||||
| KraneShares MSCI All China Index ETF | — | 726,625 | (1,002,628 | ) | ||||||||
| KraneShares MSCI One Belt One Road Index ETF | — | 995,838 | 145,257 | |||||||||
| KraneShares Emerging Markets Consumer Technology Index ETF | 969,753 | 5,333,651 | (1,048,925 | ) | ||||||||
| KraneShares MSCI China Clean Technology Index ETF | 1,486,195 | 2,693,061 | (85,079 | ) | ||||||||
| KraneShares Electric Vehicles and Future Mobility Index ETF | 1,116,938 | 15,852,470 | 499,392 | |||||||||
| KraneShares MSCI All China Health Care Index ETF | — | 892,511 | (115,890 | ) | ||||||||
| KraneShares MSCI Emerging Markets ex China Index ETF | — | 2,720,716 | 148,083 | |||||||||
| KraneShares MSCI China ESG Leaders Index ETF | — | 156,198 | (10,126 | ) | ||||||||
| KraneShares China Innovation ETF | — | 961,844 | 34,251 | |||||||||
| KraneShares S&P Pan Asia Dividend Aristocrats Index ETF | 1,282,299 | — | — | |||||||||
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 distributable earnings (loss) or paid-in capital, as appropriate, in the period that the differences arise.
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF did not commence operations prior to March 31, 2021.
151
Notes to Financial Statements (Unaudited) (continued)
The tax character of dividends and distributions paid during the years or periods ended March 31, 2022 and March 31, 2021 were as follows:
| Ordinary | Long-Term | Return of | ||||||||||||||
| KraneShares Funds | Income | Capital Gain | Capital | Totals | ||||||||||||
| KraneShares CICC China Leaders 100 Index ETF | ||||||||||||||||
| 2022 | $ | 576,817 | $ | 666,089 | $ | — | $ | 1,242,906 | ||||||||
| 2021 | 333,476 | — | — | 333,476 | ||||||||||||
| KraneShares CSI China Internet ETF | ||||||||||||||||
| 2022 | $ | — | $ | 455,309,639 | $ | — | $ | 455,309,639 | ||||||||
| 2021 | 4,346,283 | 5,925,981 | — | 10,272,264 | ||||||||||||
| KraneShares Bosera MSCI China A 50 Connect Index ETF | ||||||||||||||||
| 2022 | $ | 8,007,641 | $ | 56,352,008 | $ | — | $ | 64,359,649 | ||||||||
| 2021 | 5,683,472 | — | — | 5,683,472 | ||||||||||||
| KraneShares Bloomberg China Bond Inclusion Index ETF | ||||||||||||||||
| 2022 | $ | 936,375 | $ | — | $ | — | $ | 936,375 | ||||||||
| 2021 | 312,960 | — | — | 312,960 | ||||||||||||
| KraneShares MSCI All China Index ETF | ||||||||||||||||
| 2022 | $ | 280,169 | $ | 648,696 | $ | — | $ | 928,865 | ||||||||
| 2021 | 69,738 | — | — | 69,738 | ||||||||||||
| KraneShares MSCI One Belt One Road Index ETF | ||||||||||||||||
| 2022 | $ | 297,852 | $ | — | $ | — | $ | 297,852 | ||||||||
| 2021 | 164,798 | — | — | 164,798 | ||||||||||||
| KraneShares Emerging Markets Consumer Technology Index ETF | ||||||||||||||||
| 2022 | $ | 250,511 | $ | — | $ | — | $ | 250,511 | ||||||||
| 2021 | 1,338,886 | — | — | 1,338,886 | ||||||||||||
| KraneShares MSCI China Clean Technology Index ETF | ||||||||||||||||
| 2022 | $ | 750,577 | $ | 6,939 | $ | — | $ | 757,516 | ||||||||
| 2021 | 3,785 | — | — | 3,785 | ||||||||||||
| KraneShares Electric Vehicles and Future Mobility Index ETF | ||||||||||||||||
| 2022 | $ | 16,115,832 | $ | 5,768,425 | $ | — | $ | 21,884,257 | ||||||||
| 2021 | 132,013 | — | — | 132,013 | ||||||||||||
| KraneShares MSCI All China Health Care Index ETF | ||||||||||||||||
| 2022 | $ | — | $ | 21,078,396 | $ | — | $ | 21,078,396 | ||||||||
| 2021 | — | 469 | — | 469 | ||||||||||||
| KraneShares Asia Pacific High Income Bond ETF | ||||||||||||||||
| 2022 | $ | 1,214,239 | $ | — | $ | 192,065 | $ | 1,406,304 | ||||||||
| 2021 | 688,389 | — | — | 688,389 | ||||||||||||
| KraneShares Emerging Markets Healthcare Index ETF | ||||||||||||||||
| 2022 | $ | 10,783 | $ | — | $ | — | $ | 10,783 | ||||||||
| 2021 | 820 | — | — | 820 | ||||||||||||
152
Notes to Financial Statements (Unaudited) (continued)
| Ordinary | Long-Term | Return of | ||||||||||||||
| KraneShares Funds | Income | Capital Gain | Capital | Totals | ||||||||||||
| KraneShares MSCI Emerging Markets ex China Index ETF | ||||||||||||||||
| 2022 | $ | 681,402 | $ | 660,110 | $ | — | $ | 1,341,512 | ||||||||
| 2021 | 49,799 | — | — | 49,799 | ||||||||||||
| KraneShares MSCI China ESG Leaders Index ETF | ||||||||||||||||
| 2022 | $ | 219,611 | $ | — | $ | — | $ | 219,611 | ||||||||
| 2021 | 30,223 | — | — | 30,223 | ||||||||||||
| KraneShares CICC China Consumer Leaders Index ETF | ||||||||||||||||
| 2022 | $ | 267,348 | $ | — | $ | — | $ | 267,348 | ||||||||
| 2021 | — | — | — | — | ||||||||||||
| KraneShares China Innovation ETF | ||||||||||||||||
| 2022 | $ | 3,228 | $ | 1,058 | $ | — | $ | 4,286 | ||||||||
As of March 31, 2022, the components of tax basis distributable earnings (accumulated losses) were as follows:
| KraneShares CICC China Leaders 100 Index ETF |
KraneShares CSI China Internet ETF |
KraneShares Bosera MSCI China A 50 Connect Index ETF |
KraneShares Bloomberg China Bond Inclusion Index ETF |
KraneShares MSCI All China Index ETF |
||||||||||||||||
| Undistributed Ordinary Income | $ | — | $ | — | $ | — | $ | 93,427 | $ | 32,558 | ||||||||||
| Undistributed Long-Term Capital Gain | 57,708 | — | 101,634,817 | — | 119,165 | |||||||||||||||
| Capital Loss Carryforwards | — | — | — | (10,942 | ) | — | ||||||||||||||
| Post October Losses | — | (476,245,346 | ) | — | — | — | ||||||||||||||
| Qualified Late-Year Loss Deferrals | (6,672 | ) | — | (666,503 | ) | — | — | |||||||||||||
| Unrealized Appreciation (Depreciation) on Investments and Foreign Currency | 252,360 | (5,145,107,346 | ) | (62,954,326 | ) | 144,514 | (6,391,744 | ) | ||||||||||||
| Other Temporary Differences | (1 | ) | 2 | (10 | ) | (3 | ) | 3 | ||||||||||||
| Total Distributable Earnings/(Loss) | $ | 303,395 | $ | (5,621,352,690 | ) | $ | 38,013,978 | $ | 226,996 | $ | (6,240,018 | ) | ||||||||
153
Notes to Financial Statements (Unaudited) (continued)
| KraneShares MSCI One Belt One Road Index ETF |
KraneShares Emerging Markets Consumer Technology Index ETF |
KraneShares MSCI China Clean Technology Index ETF |
KraneShares Electric Vehicles and Future Mobility Index ETF |
KraneShares MSCI All China Health Care Index ETF |
||||||||||||||||
| Undistributed Ordinary Income | $ | 55,670 | $ | — | $ | 1,438,072 | $ | — | $ | — | ||||||||||
| Capital Loss Carryforwards | (3,175,580 | ) | (1,210,621 | ) | — | — | — | |||||||||||||
| Post October Losses | — | (16,617,741 | ) | — | (6,622,573 | ) | (12,054,799 | ) | ||||||||||||
| Qualified Late-Year Loss Deferrals | — | (208,467 | ) | (317,244 | ) | — | (207,713 | ) | ||||||||||||
| Unrealized Appreciation (Depreciation) on Investments and Foreign Currency | $ | 194,092 | $ | (30,139,897 | ) | $ | (42,217,586 | ) | $ | (26,309,625 | ) | $ | (47,485,414 | ) | ||||||
| Other Temporary Differences | — | (3 | ) | (1 | ) | (17,113 | ) | — | ||||||||||||
| Total Distributable Losses | $ | (2,925,818 | ) | $ | (48,176,729 | ) | $ | (41,096,759 | ) | $ | (32,949,311 | ) | $ | (59,747,926 | ) | |||||
| KraneShares Asia Pacific High Income Bond ETF |
KraneShares Emerging Markets Healthcare Index ETF |
KraneShares MSCI Emerging Markets ex China Index ETF |
KraneShares MSCI China ESG Leaders Index ETF |
KraneShares CICC China 5G & Semiconductor Index ETF |
||||||||||||||||
| Undistributed Ordinary Income | $ | — | $ | 4,560 | $ | 187,370 | $ | 25,929 | $ | — | ||||||||||
| Capital Loss Carryforwards | (1,488,485 | ) | (465,867 | ) | — | (172,741 | ) | (7,865,954 | ) | |||||||||||
| Post October Losses | (2,771,923 | ) | — | — | — | (398,025 | ) | |||||||||||||
| Qualified Late-Year Loss Deferrals | — | — | — | — | (42,808 | ) | ||||||||||||||
| Unrealized Depreciation on Investments and Foreign Currency | (1,509,776 | ) | (831,001 | ) | (892,550 | ) | (2,786,964 | ) | (3,859,737 | ) | ||||||||||
| Other Temporary Differences | 104,521 | (2 | ) | 1 | (2 | ) | — | |||||||||||||
| Total Distributable Losses | $ | (5,665,663 | ) | $ | (1,292,310 | ) | $ | (705,179 | ) | $ | (2,933,778 | ) | $ | (12,166,524 | ) | |||||
154
Notes to Financial Statements (Unaudited) (continued)
| KraneShares CICC China Consumer Leaders Index ETF |
KraneShares SSE STAR Market 50 Index ETF |
KraneShares Hang Seng TECH Index ETF |
KraneShares China Innovation ETF |
|||||||||||||
| Undistributed Ordinary Income | $ | — | $ | — | $ | 4,898 | $ | — | ||||||||
| Undistributed Long-Term Capital Gain | — | — | — | 110,615 | ||||||||||||
| Capital Loss Carryforwards | (1,814,547 | ) | (4,462,414 | ) | — | — | ||||||||||
| Post October Losses | (2,745,452 | ) | — | (93,749 | ) | — | ||||||||||
| Qualified Late-Year Loss Deferrals | (83,548 | ) | — | — | — | |||||||||||
| Unrealized Depreciation on Investments and Foreign Currency | (15,195,126 | ) | (14,541,082 | ) | (2,069,543 | ) | (752,572 | ) | ||||||||
| Other Temporary Differences | (2 | ) | (4 | ) | — | — | ||||||||||
| Total Distributable Losses | $ | (19,838,675 | ) | $ | (19,003,500 | ) | $ | (2,158,394 | ) | $ | (641,957 | ) | ||||
Qualified late year ordinary and Post-October capital losses (including currency and specified gain/loss items) represent losses realized from January 1, 2022 through March 31, 2022 and November 1, 2021 through March 31, 2022, respectively, that in accordance with federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year.
Other temporary differences primarily consist of late year and specified loss deferrals, PFICs mark to market, perpetual bond adjustments, and book adjustments not recognized for tax.
The Funds have capital loss carryforwards as follows:
| Short-Term | Long-Term | |||||||||||
| KraneShares Funds | Loss | Loss | Total | |||||||||
| KraneShares Bloomberg China Bond Inclusion Index ETF | $ | 10,942 | $ | — | $ | 10,942 | ||||||
| KraneShares MSCI One Belt One Road Index ETF | 2,303,054 | 872,526 | 3,175,580 | |||||||||
| KraneShares Emerging Markets Consumer Technology Index ETF | 1,210,621 | — | 1,210,621 | |||||||||
| KraneShares Asia Pacific High Income Bond ETF | 862,026 | 626,459 | 1,488,485 | |||||||||
| KraneShares Emerging Markets Healthcare Index ETF | 465,867 | — | 465,867 | |||||||||
| KraneShares MSCI China ESG Leaders Index ETF | 172,741 | — | 172,741 | |||||||||
| KraneShares CICC China 5G & Semiconductor Index ETF | 7,865,954 | — | 7,865,954 | |||||||||
| KraneShares CICC China Consumer Leaders Index ETF | 1,814,547 | — | 1,814,547 | |||||||||
| KraneShares SSE STAR Market 50 Index ETF | 3,293,617 | 1,168,797 | 4,462,414 | |||||||||
During the year ended March 31, 2022, the following Funds utilized capital loss carryforwards, to offset capital gains:
| Amount | ||||
| KraneShares Funds | Utilized | |||
| KraneShares MSCI One Belt One Road Index ETF | $ | 970,055 | ||
| KraneShares MSCI China Clean Technology Index ETF | 1,021,417 | |||
155
Notes to Financial Statements (Unaudited) (continued)
The differences between book and tax-basis unrealized appreciation and depreciation are attributable primarily to the tax deferral of losses on wash sales and investments in PFICs. The federal tax cost and aggregate gross unrealized appreciation and depreciation on investments held by the Funds at September 30, 2022 were as follows:
| Aggregated | Aggregated | |||||||||||||||
| Federal Tax | Gross Unrealized | Gross Unrealized | Net Unrealized | |||||||||||||
| KraneShares Funds | Cost | Appreciation | Depreciation | Depreciation | ||||||||||||
| KraneShares CICC China Leaders 100 Index ETF | $ | 6,751,285 | $ | 221,798 | $ | (1,219,412 | ) | $ | (997,614 | ) | ||||||
| KraneShares CSI China Internet ETF | 8,343,013,418 | 2,143,901 | (3,077,350,773 | ) | (3,075,206,872 | ) | ||||||||||
| KraneShares Bosera MSCI China A 50 Connect Index ETF | 752,053,254 | 1,717,525 | (173,273,540 | ) | (171,556,015 | ) | ||||||||||
| KraneShares Bloomberg China Bond Inclusion Index ETF | 13,019,858 | — | (999,988 | ) | (999,988 | ) | ||||||||||
| KraneShares MSCI All China Index ETF | 7,824,792 | 212,189 | (2,966,832 | ) | (2,754,643 | ) | ||||||||||
| KraneShares MSCI One Belt One Road Index ETF | 5,725,917 | 519,782 | (1,783,867 | ) | (1,264,085 | ) | ||||||||||
| KraneShares Emerging Markets Consumer Technology Index ETF | 57,359,056 | 21,604 | (24,559,901 | ) | (24,538,297 | ) | ||||||||||
| KraneShares MSCI China Clean Technology Index ETF | 164,661,293 | 1,242,224 | (57,317,439 | ) | (56,075,215 | ) | ||||||||||
| KraneShares Electric Vehicles and Future Mobility Index ETF | 288,687,818 | 10,404,043 | (69,832,693 | ) | (59,428,650 | ) | ||||||||||
| KraneShares MSCI All China Health Care Index ETF | 144,977,832 | 983,949 | (55,641,812 | ) | (54,657,863 | ) | ||||||||||
| KraneShares Asia Pacific High Income Bond ETF | 18,743,368 | 10,923 | (2,079,282 | ) | (2,068,359 | ) | ||||||||||
| KraneShares Emerging Markets Healthcare Index ETF | 3,034,199 | 139,401 | (1,203,395 | ) | (1,063,994 | ) | ||||||||||
| KraneShares MSCI Emerging Markets ex China Index ETF | 19,202,673 | 343,021 | (6,019,959 | ) | (5,676,938 | ) | ||||||||||
| KraneShares MSCI China ESG Leaders Index ETF | 6,439,585 | 95,652 | (2,181,078 | ) | (2,085,426 | ) | ||||||||||
| KraneShares CICC China 5G & Semiconductor Index ETF | 19,259,025 | 458,984 | (6,520,850 | ) | (6,061,866 | ) | ||||||||||
| KraneShares CICC China Consumer Leaders Index ETF | 8,054,317 | 48,060 | (748,279 | ) | (700,219 | ) | ||||||||||
| KraneShares SSE STAR Market 50 Index ETF | 62,375,272 | 3,080,336 | (21,680,085 | ) | (18,599,749 | ) | ||||||||||
| KraneShares Hang Seng TECH Index ETF | 13,817,338 | 9,932 | (3,838,501 | ) | (3,828,569 | ) | ||||||||||
| KraneShares China Innovation ETF | 2,594,483 | — | (1,098,104 | ) | (1,098,104 | ) | ||||||||||
| KraneShares S&P Pan Asia Dividend Aristocrats Index ETF | 2,495,682 | 855 | (244,311 | ) | (243,456 | ) | ||||||||||
156
Notes to Financial Statements (Unaudited) (continued)
Uncertainties in the Chinese tax rules governing the taxation of income distributions and capital gains from investments in A Shares could result in unexpected tax liabilities for the Funds. China generally imposes withholding tax at a rate of 10% on dividends and interest derived by non-Chinese resident investors (including, for example, Qualified Foreign Institutional Investors (“QFII”)) from Chinese companies and those companies which are not Chinese tax residents, but which are deemed to be Chinese tax residents (e.g., under Notice 7). China also imposes withholding tax at a rate of 10% on capital gains derived by non-residents from investment in actual and constructive Chinese resident companies. The Chinese withholding taxes applied to dividends, interest and capital gains may, in principle, be subject to a reduced rate under an applicable Chinese tax treaty, but the application of such treaties in the case of a non-resident (e.g., in the case of a QFII acting on behalf of non-resident investors, such as the Funds) is also uncertain. The imposition of such taxes could have a material adverse effect on the Funds’ returns. The People’s Republic of China (the “PRC”) rules regarding the taxation of non-resident investors are quickly evolving and certain of the tax regulations to be issued by the PRC State Administration of Taxation and/or the PRC Ministry of Finance to clarify matters may apply retrospectively. Such retroactively applied rules may be adverse to the Funds and their shareholders. It is also unclear how China’s value added tax (“VAT”) may be affected by tax treaty provisions. If such a tax is collected, the expenses will be passed on and borne by the Funds. The imposition of such taxes, as well as future changes in applicable PRC tax law, may adversely affect the Funds. If the Funds expect VAT to be imposed, they reserve the right to establish a reserve for such tax. If the Funds establish such a reserve but are not ultimately subject to the tax, shareholders who redeemed or sold their shares while the reserve was in place will effectively bear the tax and may not benefit from the later release, if any, of the reserve. Conversely, if the Funds do not establish such a reserve but ultimately are subject to the tax, shareholders who redeemed or sold their shares prior to the tax being withheld, reserved or paid will have effectively avoided the tax, even if they benefited from investments in a Fund. Effective November 17, 2014, QFIIs, RQFIIs (i.e., QFIIs investing in Yuan, rather than foreign currency) and non-Chinese resident investors investing through the Hong Kong-Shanghai Stock Connect are exempted temporarily from the 10% capital gains tax that normally applies to sales of A Shares on a public Chinese exchange (such as the Shanghai Stock Exchange). However, such investors are still required to pay capital gains tax for gains realized on trades executed before November 17, 2014.
On November 7, 2018, China’s Ministry of Finance and the State Administration of Taxation jointly issued Circular 108. This circular announced a three year exemption from corporate income tax withholding (“WHT”) and Value Added Tax (“VAT”) for China-sourced bond interest derived by overseas institutional investors. The WHT and VAT exemptions applied from November 7, 2018 to November 6, 2021 and are expected to be extended through the end of 2025.
6. CONCENTRATION OF RISKS
As with all ETFs, shareholders of the Funds are subject to the risk that their investment could lose money. Each Fund is subject to certain of the principal risks noted below, any of which may adversely affect a Fund’s NAV, trading price, yield, total return and ability to meet its investment objective. A more complete description of principal risks is included in each Fund’s prospectus under the heading “Principal Risks”.
CHINA RISK — The Chinese economy is generally considered an emerging market and can be significantly affected by economic and political conditions in China and surrounding Asian countries. China may be subject to considerable degrees of economic, political and social instability. In addition, the Chinese economy is export-driven and highly reliant on trade with key partners. A downturn in
157
Notes to Financial Statements (Unaudited) (continued)
the economies of China’s primary trading partners could slow or eliminate the growth of the Chinese economy and adversely impact the Fund’s investments. The Chinese government strictly regulates the payment of foreign currency denominated obligations and sets monetary policy. The Chinese government may introduce new laws and regulations that could have an adverse effect on the Fund. Although China has begun the process of privatizing certain sectors of its economy, privatized entities may lose money and/or be re-nationalized.
In the Chinese securities markets, a small number of issuers may represent a large portion of the entire market. The Chinese securities markets are subject to more frequent trading halts, low trading volume and price volatility. Recent developments in relations between the United States and China have heightened concerns of increased tariffs and restrictions on trade between the two countries. An increase in tariffs or trade restrictions or even the threat of such developments, could lead to significant reduction in international trade, which could have a negative impact on China’s export industry and a commensurately negative impact on the Fund.
The RMB Bond market is volatile with a risk of trading suspensions in particular securities and government interventions. Trading in RMB Bonds may be suspended without warning and for lengthy periods. Information on such trading suspensions, including as to their expected length, may be unavailable. Securities affected by trading suspensions may be or become illiquid. In recent years, Chinese entities have incurred significant levels of debt and Chinese financial institutions currently hold relatively large amounts of non-performing debt. Thus, there exists a possibility that widespread defaults could occur, which could trigger a financial crisis, freeze Chinese debt and finance markets and make certain Chinese securities illiquid.
In addition, trade relations between the U.S. and China have recently been strained. Worsening trade relations between the two countries could adversely impact the Fund, particularly to the extent that the Chinese government restricts foreign investments in on-shore Chinese companies or the U.S. government restricts investments by U.S. investors in China including by limiting the ability of Chinese issuers to list on the U.S. exchanges. Worsening trade relations may also result in market volatility and volatility in the price of Fund shares. In addition, the U.S government has imposed restrictions on the ability of U.S. investors to hold and/or acquire securities of certain Chinese companies, which may adversely impact the Fund, may mean that the Fund’s Underlying Index may need to adjust its methodology or could increase tracking error for the Fund.
CONCENTRATION RISK — Because the assets of certain Funds are expected to be concentrated in an industry or group of industries to the extent that the Underlying Index concentrates in a particular industry or group of industries, the Fund is subject to loss due to adverse occurrences that may affect that industry or group of industries or sector. Market conditions, interest rates, and economic, regulatory, or financial developments could significantly affect a single industry or a group of related industries, and the securities of companies in that industry or group of industries could react similarly to these or other developments. Depending on the composition of each Fund’s Underlying Index, the Fund may be subject to principal risks, as outlined in each Fund’s prospectus. Each Fund may have significant exposure to other industries or sectors over time.
CURRENCY RISK — The Funds’ assets will be invested in instruments denominated in foreign currencies and the income received by the Fund may be in foreign currencies. The Fund will compute and expects to distribute its income in U.S. dollars, and the computation of income will be made on the date that the income is earned by the Fund at the foreign exchange rate in effect on that date. The Fund will conduct its foreign currency exchange transactions either on a spot (i.e., cash) basis at the spot rate prevailing in the foreign currency exchange market at the time the Fund wishes to enter into the transaction, or through forward, futures or options contracts to purchase or sell foreign currencies.
158
Notes to Financial Statements (Unaudited) (continued)
The Fund’s NAV is determined on the basis of the U.S. dollar. The Fund may therefore lose value if the local currency of a foreign investment depreciates against the U.S. dollar, even if the local currency value of the Fund’s holdings goes up. Currency exchange rates can be very volatile and can change quickly and unpredictably, which may adversely affect the Fund. The Fund may also be subject to delays in converting or transferring U.S. dollars to foreign currencies and vice versa. This may adversely affect the Fund’s performance over time.
DERIVATIVES RISK — The use of derivatives (including swaps, futures, forwards, structured notes and options) may involve leverage, which includes risks that are different from, and greater than, the risks associated with investing directly in a reference asset, because a small investment in a derivative can result in a large impact on the Fund and may cause the Fund to be more volatile. Derivatives may at times be highly illiquid, and the Fund may not be able to close out or sell a derivative at a particular time or at an anticipated price. Derivatives can be difficult to value and valuation may be more difficult in times of market turmoil. There may be imperfect correlation between the derivative and that of the reference asset, resulting in unexpected returns that could materially adversely affect the Fund. Certain derivatives (such as swaps and options) are bi-lateral agreements that expose the Fund to counterparty risk, which is the risk of loss in the event that the counterparty to an agreement fails to make required payments or otherwise comply with the terms of derivative. In that case, the Fund may suffer losses potentially equal to, or greater than, the full value of the derivative if the counterparty fails to perform its obligations. That risk is generally thought to be greater with over-the-counter (OTC) derivatives than with derivatives that are exchange traded or centrally cleared. Counterparty risks are compounded by the fact that there are only a limited number of ways available to invest in certain reference assets and, therefore, there may be few counterparties to swaps or options based on those reference assets. Many derivatives are subject to segregation requirements that require the Fund to segregate the market or notional value of the derivatives, which could impede the portfolio management of the Fund.
EMERGING MARKETS RISK — A Funds’ investments in emerging markets are subject to greater risk of loss than investments in developed markets. This is due to, among other things, greater market volatility, greater risk of asset seizures and capital controls, lower trading volume, political and economic instability, greater risk of market shutdown and more governmental limitations on foreign investments than typically found in developed markets. The economies of emerging markets, and China in particular, may be heavily reliant upon international trade and may suffer disproportionately if international trading declines or is disrupted.
LIQUIDITY RISK — Certain of the Funds’ investments are subject to liquidity risk, which exists when an investment is or becomes difficult to purchase or sell at a reasonable time and price. If a transaction is particularly large or if the relevant market is or becomes illiquid, it may not be possible to initiate a transaction or liquidate a position, which may cause the Funds to suffer significant losses and difficulties in meeting redemptions. Liquidity risk may be the result of, among other things, market turmoil, the reduced number and capacity of traditional market participants, or the lack of an active trading market. Markets for securities or financial instruments could be disrupted by a number of events, including, but not limited to, an economic crisis, natural disasters, new legislation or regulatory changes inside or outside the U.S. Liquid investments may become less liquid after being purchased by the Fund, particularly during periods of market stress. In addition, if a number of securities held by the Fund stop trading, it may have a cascading effect and cause the Fund to halt trading. Volatility in market prices will increase the risk of the Fund being subject to a trading halt. Certain countries in which the Fund may invest may be subject to extended settlement delays and/or foreign holidays, during which the Fund will unlikely be able to convert holdings to cash.
159
Notes to Financial Statements (Unaudited) (concluded)
MARKET RISK — The values of the Fund’s holdings could decline generally or could underperform other investments. In addition, there is a risk that policy changes by the U.S. Government, Federal Reserve, and/or other government actors could cause volatility in global financial markets, negative sentiment and higher levels of Fund redemptions, which could have a negative impact on the Fund and could result in losses. Geopolitical and other risks, including environmental and public health risks may add to instability in world economies and markets generally. Changes in value may be temporary or may last for extended periods. Further, the Fund is susceptible to the risk that certain investments may be difficult or impossible to sell at a favorable time or price. Market developments may also cause the Fund’s investments to become less liquid and subject to erratic price movements. Such market developments may also cause the Fund to encounter difficulties in timely honoring redemptions, especially if market events cause an increased incidence of shareholder redemptions.
NON-DIVERSIFIED FUND RISK — Because a Fund is non-diversified and may invest a greater portion of its assets in fewer issuers than a diversified fund, changes in the market value of a single portfolio holding could cause greater fluctuations in the Fund’s share price than would occur in a diversified fund. This may increase the Fund’s volatility and cause the performance of a single portfolio holding or a relatively small number of portfolio holdings to have a greater impact on the Fund’s performance.
VALUATION RISK — Independent market quotations for the non-U.S. securities held by the Funds may not be readily available and such securities may be fair valued by a pricing service at an evaluated price. These valuations involve subjectivity and different market participants may assign different prices to the same investment. As a result, there is a risk that a Fund may not be able to sell an investment at the price assigned to the investment by the Fund. In addition, the securities in which the Funds invest may trade on days that the Funds do not price their shares; as a result, the value of Fund shares may change on days when investors cannot purchase or sell their holdings.
7. OTHER
At September 30, 2022, all shares issued by the Funds were in Creation Unit aggregations to Authorized Participants through primary market transactions (e.g., transactions directly with the Funds). However, the individual shares that make up those Creation Units are traded on the Exchange (e.g., secondary market transactions). Some of those individual shares have been bought and sold by persons that are not Authorized Participants. Each Authorized Participant has entered into an agreement with the Funds’ Distributor.
8. INDEMNIFICATIONS
In the normal course of business, the Funds enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be established; however, based on experience, the risk of loss from such claims is considered remote.
9. SUBSEQUENT EVENTS
The Funds have evaluated the need for additional disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued.
Based on this evaluation, no additional disclosures or adjustments were required to the financial statements as of the date the financial statements were issued.
160
Liquidity Risk Management Program (Unaudited)
September 30, 2022
Consistent with Rule 22e-4 under the Investment Company Act of 1940, as amended, the Trust, on behalf of its separate series (“Funds”), has established a liquidity risk management program (the “Program”). The Program is designed to assess and manage each Fund’s liquidity risk. Liquidity risk is defined as the risk that a Fund could not meet requests to redeem its shares without significant dilution of remaining shareholders. The Board has designated a cross-functional committee, which is composed of Krane Funds Advisors, LLC (“Krane”) compliance and capital markets personnel and the Trust’s Chief Compliance Officer, to administer the Program (the “Program Administrator”). The Program Administrator is responsible for implementing and monitoring the Program to assess and review, on an ongoing basis, the Funds’ liquidity risk.
The Program includes a number of elements that support the management and assessment of liquidity risk, including an annual assessment of the Funds’ liquidity risk factors and the periodic classification (or re-classification, as necessary,) of the Funds’ investments into buckets (highly liquid, moderately liquid, less liquid and illiquid) based on the number of days that it is reasonably expected to convert them into cash, in current market conditions, without significantly changing their value. In conducting its assessment, the Program Administrator utilizes information about each Fund’s investment strategy, its flows, the efficacy of its arbitrage mechanism (as indicated by the premiums and/or discounts and bid-ask spreads of its shares), the characteristics of the Fund’s shareholders and the Fund’s ability to honor redemptions in kind.
At a meeting of the Board in May 2022, the Program Administrator provided the Board with a written report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation from January 1, 2021 through December 31, 2021 (the “Annual Report”). In the Annual Report, the Program Administrator confirmed that the Program is reasonably designed to assess and manage each Fund’s liquidity risk and that the Program has been implemented and operated effectively. The Program Administrator is not aware of any weakness in the design and/ or effectiveness of implementation of the Program and no material changes to the Program were proposed. In addition, the Program Administrator has concluded that each Fund investment strategy continues to be appropriate for an open-end fund. There were no material violations of the Program during the reporting period. At subsequent quarterly meetings of the Board, the Program Administrator provided the Board with a summary of each Fund’s liquidity profile during the preceding quarter and the operation of the Program with respect thereto.
161
Approval of Advisory Agreement and Sub-Advisory Agreements (Unaudited)
At a meeting held on May 25-26, 2022, the Board of Trustees (the “Board”) of KraneShares Trust (the “Trust”), including a majority of the Trustees who are not “interested persons” of the Trust, as that term is defined in the Investment Company Act of 1940, as amended (the “Independent Trustees”), approved renewal of:
| ● | the existing investment advisory agreement (the “Advisory Agreement”) between Krane Funds Advisors, LLC (“Krane”) and the Trust on behalf of each of the following separate series of the Trust that operate as exchange-traded funds (collectively, the “Funds”): |
| ● | KraneShares Asia Pacific High Income Bond ETF (“KHYB”); |
| ● | KraneShares Bloomberg China Bond Inclusion Index ETF (“KBND”); |
| ● | KraneShares Bosera MSCI China A 50 Connect Index ETF (“KBA”); |
| ● | KraneShares China Innovation ETF (“KGRO”); |
| ● | KraneShares CICC China 5G & Semiconductor ETF (“KFVG”); |
| ● | KraneShares CICC China Consumer Leaders Index ETF (“KBUY”); |
| ● | KraneShares CICC China Leaders 100 Index ETF (“KFYP”); |
| ● | KraneShares CSI China Internet ETF (“KWEB”); |
| ● | KraneShares Electric Vehicles and Future Mobility Index ETF (“KARS”); |
| ● | KraneShares Emerging Markets Consumer Technology Index ETF (“KEMQ”); |
| ● | KraneShares Emerging Markets Healthcare Index ETF (“KMED”); |
| ● | KraneShares Hang Seng TECH Index ETF (“KTEC”); |
| ● | KraneShares MSCI All China Health Care Index ETF (“KURE”); |
| ● | KraneShares MSCI All China Index ETF (“KALL”); |
| ● | KraneShares MSCI China Clean Technology Index ETF (“KGRN”); |
| ● | KraneShares MSCI China ESG Leaders ETF (“KESG”); |
| ● | KraneShares MSCI Emerging Markets ex China Index ETF (“KEMX”); |
| ● | KraneShares MSCI One Belt One Road Index ETF (“OBOR”); |
| ● | KraneShares SSE STAR Market 50 Index ETF (“KSTR”). |
| ● | the existing sub-advisory agreement (the “Bosera Agreement”) between Bosera Asset Management (International) Co., Ltd. (“Bosera”) and Krane, on behalf of KBA and KSTR; and |
| ● | The existing sub-advisory agreement (the “Nikko Agreement”) between Nikko Asset Management Americas Inc. (“Nikko”) and Krane on behalf of KHYB. |
Bosera and Nikko are referred to collectively herein as the “Sub-Advisers”. The Bosera Agreement and the Nikko Agreement are referred to collectively herein as the “Sub-Advisory Agreements,” and the Sub-Advisory Agreements and the Advisory Agreement are collectively referred to as the “Agreements.”
In advance of the meeting, and at a separate meeting of the Independent Trustees in executive session held on May 25, 2022, the Board received and considered information provided by Krane in response to the Independent Trustees’ written requests relating to the Board’s consideration of
162
Approval of Advisory Agreement and Sub-Advisory Agreements (Unaudited) (continued)
the Advisory Agreement with respect to each of the Funds. The Board also considered information provided by each Sub-Adviser in response to separate written requests directed to each Sub-Adviser.
The Board considered that its evaluation process with respect to Krane and each Sub-Adviser is an ongoing one, and the Board considers information at each of its regularly scheduled meetings related to, among other matters, the services provided to each Fund by Krane and (as applicable) a Sub-Adviser. The Board also receives additional information from Krane outside of the regularly scheduled Board meetings, including at executive sessions held by the Independent Trustees.
In evaluating the Agreements, the Board considered, among other matters: (1) the nature, extent, and quality of the services provided to each Fund by Krane and, if applicable, by their respective Sub-Adviser; (2) the compensation paid under the Advisory Agreement; (3) the costs of the services provided by Krane and the profitability of Krane with respect to its relationship with the Funds; (4) the extent to which economies of scale could be realized as the Funds grow and whether the unitary fee charged to the Funds under the Advisory Agreement will enable investors in the Funds to share in any such economies of scale; and (5) other benefits Krane and the Sub-Advisers receive from their respective relationship with the Funds.
Nature, Extent and Quality of Services
Based on written and oral reports received by the Board prior to and at the May 25, 2022 executive session of the Independent Trustees and the May 25-26, 2022 meeting of the Board, the Board considered the nature, quality, and extent of the overall services provided by Krane and the Sub-Advisers under the Agreements. The Board considered the responsibilities of Krane with respect to each Fund under the Advisory Agreement, including its obligation to oversee the services provided by the Sub-Advisers, as applicable. The Board also discussed the nature, quality and extent of services provided by Bosera under the Bosera Agreement and Nikko under the Nikko Agreement.
The Advisory Agreement
| ● | The Board took note of the qualifications, background and responsibilities of Krane’s senior personnel who provide services to the Funds managed directly by Krane and also considered the expertise of Krane personnel charged with oversight of the Sub-Advisers. |
| ● | The Board recognized that Krane has invested and continues to invest significant time and effort in structuring the Trust and the Funds. The Board noted that Krane, together with the Sub-Advisers (if applicable), is responsible for assessing the market appeal and the investment strategy of each Fund. |
| ● | The Board considered that Krane is responsible for arranging service providers for the Trust. |
| ● | The Board also considered that Krane has established a securities lending program for the benefit of certain Funds. |
| ● | The Board noted that Krane continues to evaluate its existing compliance and operational staff, as well as its investment personnel, and that Krane continually seeks to retain qualified and experienced staff in these areas and to invest in additional resources as its business continues to grow. |
| ● | The Board considered the financial condition of Krane and noted that Krane is part of a larger family of investment management firms with significant resources. |
163
Approval of Advisory Agreement and Sub-Advisory Agreements (Unaudited) (continued)
The Bosera Agreement
| ● | The Board took note of the significant experience of Bosera’s portfolio management team with respect to investments in China and access to the China A Share market. The Board noted Bosera’s access to the SSE Science and Technology Innovation Board (STAR Market). |
| ● | The Board considered the continued development of Bosera’s compliance function and its long-term relationship with the Adviser. |
The Nikko Agreement
| ● | The Board noted that investors in KHYB have access to a portfolio managed by one of the largest asset management firms in Asia with significant experience managing fixed income portfolios in Japan and across Asia. |
| ● | The Board considered that KHYB invests in high-yield bonds across the Asia Pacific region. |
| ● | The Board considered that the lead portfolio manager of KHYB has a significant tenure at Nikko and is supported by a large and experienced fixed income team. |
| ● | The Board noted the relatively steady increase in KHYB’s assets since inception. |
Investment Performance
The Board noted that it considers the performance of each Fund at each regular meeting of the Board. At such meetings, Krane presents information regarding the performance of each Fund versus an identified Morningstar peer group. At the Meeting, the Board considered each Fund’s performance versus its broad Morningstar peer group, as well as a select group of competitors identified by Krane. The Board recognized that many of the Funds are in the same Morningstar peer group because they have significant exposure to China, notwithstanding the meaningful differences in the Funds’ underlying indexes and investment strategies. The Board discussed the limitations of comparisons versus such a large and undifferentiated peer group and considered that the Funds offer shareholders access to unique investment opportunities, particularly in China.
The Board noted that several of the Funds are actively managed and it considered that the performance of an actively-managed Fund relative to its respective peer group is an appropriate measurement of performance. With respect to those Funds that track the performance of an underlying index, however, the Board considered that the tracking error of such Funds against their underlying index was a more meaningful representation of each such Fund’s performance. The Board considered that, at each meeting of the Board it receives reports of the tracking error of each Fund against both its underlying index and key competitors. The Board noted the tracking error of certain Funds exceeded 3% for the one-year period ended March 31, 2022 and noted the following reasons for such dispersion:
| ● | KALL and KEMX: primarily a result of the sampling/optimization approach to building each Fund’s portfolio and adjustments to the portfolio as a result of the Presidential Executive Order 13959 (Addressing the Threat From Securities Investments That Finance Certain Companies of the People’s Republic of China) (“the “Executive Order”); |
| ● | KGRN: resulting from a the removal from the index of a security in which trading halted and the Fund’s inability to sell such security immediately; |
| ● | KSTR: adjustments to the portfolio as a result of the Executive Order, including removing a holding that represented approximately nine percent of the underlying index; |
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Approval of Advisory Agreement and Sub-Advisory Agreements (Unaudited) (continued)
| ● | OBOR and KEMQ: resulting from timing issues related to repricing of Russia securities and when such securities were removed from the Fund and from the underlying index; |
| ● | KARS: as a result of changes to the underlying index in June 2021. |
The Board considered the underperformance of KHYB which is actively managed:
| ● | KHYB: The Board noted that the long-term performance of KHYB included performance prior to August 2021 when KHYB invested solely in China. The Board considered that recent China real estate market uncertainty and Evergrande debt issues had added pressure to the Asian US dollar high yield market. |
The Board also considered other factors, including the use of fair value pricing by the Funds and the Funds’ asset inflows and outflows, which affect the performance of the Funds but not their underlying indices (if applicable). The Board considered that these factors can be expected to primarily affect the Funds’ tracking error (if applicable).
Compensation
The Board considered that pursuant to the Advisory Agreement, Krane has entered into a unitary advisory fee arrangement for each of the Funds. Under the unitary fee arrangement, Krane is responsible for paying most of the Funds’ expenses, including those of the Funds’ principal service providers and Sub-Adviser (if applicable). The Board considered the information provided by Krane regarding the amounts it pays to the Funds’ service providers under the unitary fee arrangement. The Board reviewed and considered the fees paid by each Fund in light of the nature, quality and extent of the services provided or obtained by Krane. The Board also considered that Krane has imposed fee waivers on certain Funds and considered the net expense ratios of the Funds compared to those of their peer groups.
The Board noted that the management fees paid by many of the Funds are higher than the median management fee within their respective Morningstar peer groups and that the total expense ratios of many Funds are managed through the use of expense waivers. The Board considered that the Morningstar peer groups for the Funds do not reflect the unique exposure and thematic approach of the Funds and considered that the Funds’ total expense ratios are generally consistent with those of their direct peers. The Board considered that Krane applies a methodical and consistent approach to pricing the Funds and conducts significant competitive research with respect to such pricing. The Board considered that the Funds offer unique investment exposure for investors in U.S. registered funds and considered the operational costs incurred by Krane under the unitary fee structure. The Board also considered the effect of each Fund’s assets under management on its net expense ratio.
Although the Board received information regarding the fees paid to the Sub-Advisers under the Sub-Advisory Agreements, the Board noted the arm’s-length nature of the relationship between Krane and the Sub-Advisers with respect to the negotiation of sub-advisory fee rates. The Board also considered that Krane (and not the Funds) pays each Sub-Adviser’s fees.
Costs and Profitability
The Board noted that Krane continues to waive certain fees for some of the Funds. The Board also considered that although Krane is profitable, it was not making a profit from its relationship with all of the Funds under the Advisory Agreement. The Board considered Krane’s commitment to the success of the Funds and the use of a unitary fee structure under which Krane bears the risk if certain of the Funds’ expenses increase or if a Fund’s assets fail to increase to a level sufficient to cover such
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Approval of Advisory Agreement and Sub-Advisory Agreements (Unaudited) (continued)
expenses. The Board also considered that Krane has established a securities lending program for the benefit of certain of the Funds and that fees earned by Krane from such Funds can affect the profitability of such Funds.
The Board considered the effect of each Fund’s assets under management on the potential profitability of such Fund under the unitary fee structure in light of the costs associated with the personnel, systems and equipment necessary to manage the Funds and to meet the regulatory and compliance requirements of the SEC and other regulatory bodies, as well as other expenses Krane pays in accordance with the Advisory Agreement.
The Board did not consider information regarding the costs of services provided or profits realized by the Sub-Advisers from their relationships with the Funds, noting the arm’s-length nature of the relationship between Krane and the Sub-Advisers with respect to the negotiation of the sub-advisory fee rate on behalf of each Fund. The Board considered that Krane, and not the Funds, is responsible for paying the sub-advisory fees under each Sub-Advisory Agreement.
Other Benefits
The Board considered the extent to which Krane would derive ancillary benefits from the Funds’ operations, including benefits to Krane as a result of its ability to use the assets of certain Funds to engage in soft dollar transactions and the existence of a securities lending program for certain Funds. The Board did not observe any other potential benefits to be realized by Krane from its relationship with the Funds.
Economies of Scale
The Board considered that each Fund is managed by Krane pursuant to a unitary fee advisory agreement, pursuant to which Krane bears all of the Fund’s expenses until it gathers sufficient assets under management to, in effect, pay its own costs. As a result, the Board observed, Krane typically subsidizes each Fund for a period of time following its inception. The Board also considered that Krane continues to reinvest a significant portion of its profits in its business, including through the addition of compliance and operations personnel, and that any economies of scale are shared with the Funds in this manner. The Board determined to continue monitoring for potential economies of scale, but concluded that, at present, they were not a material factor for the Board to consider in connection with the renewal of the Advisory Agreement.
Conclusion
The Board did not identify any single factor as being of paramount importance, and different Trustees may have given different weight to different factors in their review of the Agreements. The Board reviewed a memorandum from Independent Trustee counsel discussing the legal standards and judicial precedent applicable to its consideration of the Agreements. The Board noted that, as in the past, it will continue to monitor the Funds at its regular meetings, during executive sessions of the Independent Trustees and outside of the Board meetings. Based on its review, including consideration of each of the factors referenced above, the Board determined, in the exercise of its reasonable business judgment, that the advisory arrangements, as outlined in the Agreements, were reasonable in light of the factors considered by the Board.
166
Approval of Advisory Agreement and Sub-Advisory Agreements (Unaudited) (continued)
At a meeting held on August 2-3, 2022, the Board of Trustees (the “Board”) of KraneShares Trust (the “Trust”), including a majority of the Trustees who are not “interested persons” of the Trust, as that term is defined in the Investment Company Act of 1940, as amended (the “Independent Trustees”), approved the existing investment advisory agreement (the “Advisory Agreement”) between Krane Funds Advisors, LLC (“Krane”) and the Trust, on behalf of KraneShares S&P Pan Asia Dividend Aristocrats Index ETF (the “New Fund”).
In advance of the meeting, and at a separate meeting of the Independent Trustees in executive session held on August 2, 2022, the Board received and considered information provided by Krane in response to the Independent Trustees’ written request related to the Board’s consideration of the Advisory Agreement with respect to the New Fund. The Board also noted that it considers information at each of its regularly scheduled meetings related to, among other matters, the services provided by Krane to each series of the Trust, and that such information will include information related to the New Fund after it is operational. The Board considered that the Independent Trustees also receive additional information outside of regularly scheduled Board meetings and at executive sessions held by the Independent Trustees. As a result, the Board considered that its evaluation process with respect to Krane is an ongoing one.
In evaluating the Advisory Agreement, the Board considered, among other matters: (1) the nature, extent, and quality of the services to be provided to the New Fund by Krane; (2) the proposed compensation to be paid by the New Fund under the Advisory Agreement; (3) the estimated costs of the services to be provided by Krane and the profitability expectations of Krane with respect to its relationship with the New Fund; (4) the extent to which economies of scale could be realized as the New Fund grows and whether the unitary fee charged under the Advisory Agreement will enable investors in the New Fund to share in any such economies of scale; and (5) other benefits Krane anticipates it may receive from its relationship with the New Fund.
Nature, Extent and Quality of Services
Based on written and oral reports received by the Board prior to and at the August 2, 2022 executive session of the Independent Trustees and August 2-3, 2022 meeting of the Board, the Board considered the nature, quality, and extent of the overall services to be provided by Krane to the New Fund under the Advisory Agreement. The Board took note of the qualifications, background and responsibilities of Krane personnel who will provide services to the New Fund.
The Board recognized that Krane invests significant time and effort in structuring new series of the Trust. They considered the time expended by Krane to structure the New Fund, taking note of the unique nature of the investment strategy of the New Fund. They considered that Krane carefully assesses the market appeal and investment strategy for the New Fund, and arranges service providers for the Trust. The Board also noted that Krane continually evaluates its existing compliance and operational staff, as well as its investment professionals, and that Krane has consistently sought to retain qualified and experienced staff in these areas as its business has grown. The Board also considered Krane’s current ownership structure, financial strength and long-term strategic plans. The Board noted that Krane is part of a family of investment management firms with significant resources, including administrative resources utilized by Krane.
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Approval of Advisory Agreement and Sub-Advisory Agreements (Unaudited) (continued)
Investment Performance
The Board noted that, because the New Fund has not yet commenced investment operations, they have no investment performance. The Board noted that once the New Fund commences operations, the Board will receive regular reports regarding its performance relative to its respective broad Morningstar peer group, as well as a select group of competitors identified by Krane. The Board also considered that at its regular meetings it will receive information regarding the New Fund against the performance of an identified index.
Compensation
The Board considered that, pursuant to the Advisory Agreement, Krane will enter into a unitary advisory fee arrangement for the New Fund. The Board considered the proposed fees for the New Fund compared to its Morningstar universe and against a custom peer group composed of only smart beta funds. The Board considered that the proposed fee rate for the New Fund is above the median of its respective peer group(s) and that it is in the top quartile. The Board considered the unique nature of the strategy followed by the New Fund. The Board also considered that under the unitary fee arrangement, Krane will be responsible for paying most of the expenses incurred by the New Fund, including those of its principal service providers. The Board noted that, under the unitary fee structure, Krane takes the risk that the New Fund may not be successful in raising sufficient assets to enable Krane to cover the cost of such expenses.
Costs and Profitability
The Board considered the estimated cost of Krane’s services with respect to the New Fund. The Board noted that, because the New Fund has not yet launched, it was difficult to estimate how profitable they would be to Krane, although the Board recognized that the New Fund will leverage procedures and systems put in place in connection with management of other series of the Trust. The Independent Trustees received information from Krane regarding its overall profitability and discussed with Krane’s management how launching the New Fund could impact such profitability. The Board considered information previously provided by Krane regarding the cost of its services and its profitability with respect to the existing operational series of the Trust. The Board noted Krane’s continuing commitment to operating the Trust, and considered its proposal to implement a unitary fee structure under which it will bear many of the expenses of the New Fund.
Other Benefits
The Board considered the extent to which Krane could derive ancillary benefits from the operations of the New Fund. They noted that the New Fund would participate in the Trust’s securities lending program, and considered whether Krane would benefit as a result of its ability to use the New Fund’s assets to engage in soft dollar transactions.
Economies of Scale
The Board considered whether Krane would realize economies of scale with respect to its services as the New Fund grows, including the extent to which this is reflected in the level of fees to be paid by the New Fund. The Board noted that the proposed advisory fees for the New Fund does not includes breakpoints, and considered that it is not possible—before the commencement of investment operations — to accurately evaluate potential economies of scale. The Board also noted that Krane continues to reinvest a portion of its profits in its business, including through the evolution
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Approval of Advisory Agreement and Sub-Advisory Agreements (Unaudited) (concluded)
of its compliance and investment infrastructure, and that any economies of scale could be shared with the New Fund in this manner. Based on these and other considerations, including that the New Fund is newly organized, the Board considered economies of scale not to be a material factor in its consideration of the Advisory Agreement.
Conclusion
The Board did not identify any single factor as being of paramount importance, and different Trustees may have given different weight to different factors in their review of the Advisory Agreement. The Board reviewed a memorandum from Independent Trustee counsel discussing the legal standards and judicial precedent applicable to its consideration of the Advisory Agreement. The Board noted that, consistent with its approach to other series of the Trust, it will continue to monitor the New Fund at its regular meetings, during executive sessions of the Independent Trustees and outside of the Board meetings. Based on its review, including consideration of each of the factors referenced above, the Board determined, in the exercise of its reasonable business judgment, that the advisory arrangements, as outlined in the Advisory Agreement, were reasonable in light of the factors considered by the Board.
169
Disclosure of Fund Expenses (Unaudited)
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage expenses; and (2) ongoing costs. All Exchange Traded Funds (“ETFs”) 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 (April 1, 2022 to September 30, 2022).
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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, including brokerage commissions on the purchases and sale of Fund shares. Therefore, the expense examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If these transactional costs had been included, your costs would have been higher.
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Disclosure of Fund Expenses (Unaudited) (continued)
| Beginning | Ending | |||||||||||||||
| Account | Account | Annualized | Expenses | |||||||||||||
| Value | Value | Expense | Paid During | |||||||||||||
| 4/1/2022 | 9/30/2022 | Ratios | Period(1) | |||||||||||||
| KraneShares CICC China Leaders 100 Index ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 799.90 | 0.69 | % | $ | 3.11 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,021.61 | 0.69 | 3.50 | ||||||||||||
| KraneShares CSI China Internet ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 834.70 | 0.69 | % | $ | 3.17 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,021.61 | 0.69 | 3.50 | ||||||||||||
| KraneShares Bosera MSCI China A 50 Connect Index ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 825.60 | 0.54 | % | $ | 2.47 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,022.36 | 0.54 | 2.74 | ||||||||||||
| KraneShares Bloomberg China Bond Inclusion Index ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 917.10 | 0.48 | % | $ | 2.31 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,022.66 | 0.48 | 2.43 | ||||||||||||
| KraneShares MSCI All China Index ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 815.60 | 0.49 | % | $ | 2.23 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,022.61 | 0.49 | 2.48 | ||||||||||||
| KraneShares MSCI One Belt One Road Index ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 813.20 | 0.78 | % | $ | 3.55 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,021.16 | 0.78 | 3.95 | ||||||||||||
| KraneShares Emerging Markets Consumer Technology Index ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 735.60 | 0.60 | % | $ | 2.61 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,022.06 | 0.60 | 3.04 | ||||||||||||
| KraneShares MSCI China Clean Technology Index ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 771.50 | 0.79 | % | $ | 3.51 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,021.11 | 0.79 | 4.00 | ||||||||||||
| KraneShares Electric Vehicles and Future Mobility Index ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 774.30 | 0.71 | % | $ | 3.16 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,021.51 | 0.71 | 3.60 | ||||||||||||
| KraneShares MSCI All China Health Care Index ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 749.10 | 0.65 | % | $ | 2.85 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,021.81 | 0.65 | 3.29 | ||||||||||||
| KraneShares Asia Pacific High Income Bond ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 903.60 | 0.69 | % | $ | 3.29 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,021.61 | 0.69 | 3.50 | ||||||||||||
| KraneShares Emerging Markets Healthcare Index ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 795.90 | 0.79 | % | $ | 3.56 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,021.11 | 0.79 | 4.00 | ||||||||||||
| KraneShares MSCI Emerging Markets ex China Index ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 765.20 | 0.24 | % | $ | 1.06 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,023.87 | 0.24 | 1.22 | ||||||||||||
171
Disclosure of Fund Expenses (Unaudited) (concluded)
| Beginning | Ending | |||||||||||||||
| Account | Account | Annualized | Expenses | |||||||||||||
| Value | Value | Expense | Paid During | |||||||||||||
| 4/1/2022 | 9/30/2022 | Ratios | Period(1) | |||||||||||||
| KraneShares MSCI China ESG Leaders Index ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 769.80 | 0.58 | % | $ | 2.57 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,022.16 | 0.58 | 2.94 | ||||||||||||
| KraneShares CICC China 5G & Semiconductor Index ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 744.40 | 0.65 | % | $ | 2.84 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,021.81 | 0.65 | 3.29 | ||||||||||||
| KraneShares CICC China Consumer Leaders Index ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 928.20 | 0.69 | % | $ | 3.34 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,021.61 | 0.69 | 3.50 | ||||||||||||
| KraneShares SSE STAR Market 50 Index ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 770.30 | 0.89 | % | $ | 3.95 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,020.61 | 0.89 | 4.51 | ||||||||||||
| KraneShares Hang Seng TECH Index ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 754.50 | 0.68 | % | $ | 2.99 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,021.66 | 0.68 | 3.45 | ||||||||||||
| KraneShares China Innovation ETF | ||||||||||||||||
| Actual Fund Return | $ | 1,000.00 | $ | 791.80 | 0.16 | % | $ | 0.72 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,024.27 | 0.16 | 0.81 | ||||||||||||
| KraneShares S&P Pan Asia Dividend Aristocrats Index ETF | ||||||||||||||||
| Actual Fund Return(2) | $ | 1,000.00 | $ | 906.80 | 0.69 | % | $ | 0.29 | ||||||||
| Hypothetical 5% Return | 1,000.00 | 1,001.89 | 0.69 | 0.30 | ||||||||||||
| (1) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period) unless otherwise indicated. |
| (2) | Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 16/365 (to reflect the one-half year period) unless otherwise indicated. |
172
Supplemental Information (Unaudited)
Net asset value, or “NAV”, is the price per Share at which the Funds issue and redeem Shares to Authorized Participants. It is calculated in accordance with the policies described in Note 2 in Notes to Financial Statements. The “Market Price” of the Funds generally is determined using the closing price on the stock exchange on which the Shares of the Funds are listed for trading. 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 of Fund Shares.
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. Shareholders may pay more than NAV when they buy Fund Shares and receive less than NAV when they sell those Shares, because Shares are bought and sold at Market Price.
Further information regarding premiums and discounts is available on the Funds’ website at http://kraneshares.com. The premium and discount information contained on the website represents past performance and cannot be used to predict future results.
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KraneShares Trust:
280 Park Avenue 32nd Floor
New York, NY 10017
1-855-857-2638
http://kraneshares.com/
Investment Adviser:
Krane Funds Advisors, LLC
280 Park Avenue 32nd Floor
New York, NY 10017
Sub-Adviser:
Bosera Asset Management (International) Co., Ltd.
Suite 4109
Jardine House
One Connaught Place
Central, Hong Kong
Sub-Adviser:
Nikko Asset Management Americas, Inc.
605 Third Avenue 38th Floor
New York, NY 10158
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
Independent Registered Public
Accounting Firm:
KPMG LLP
1601 Market Street
Philadelphia, PA 19103
This information must be preceded or accompanied by a current prospectus for the Funds described.
KraneShares Trust:
280 Park Avenue, 32nd Floor
New York, NY 10017
KRS-SA-001-1000