#1KraneShares™ Diversification Opportunities From Capturing China as an Asset Class An Overview of the KraneShares ICBCCS S&P China 500 Index UCITS ETF (Ticker: CHIN) CHIN 16/Oct/2023 [email protected] This is a marketing communication. Please refer to the prospectus of the UCITS, the KIID, and the PRIIP before making any final investment decisions.#2P KraneShares™ Introduction to KraneShares 7 About KraneShares Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. The firm is focused on providing investors with strategies to capture China's importance as an essential element of a well-designed investment portfolio. KraneShares ETFs represent innovative, first to market strategies that have been developed based on the firm and its partners' deep knowledge of investing. These strategies allow investors to stay current on global market trends and provide meaningful diversification. Krane Funds Advisors, LLC, is a signatory of the United Nations- supported Principles for Responsible Investing (UN PRI). In 2018, KraneShares established operations in the United Kingdom (UK) and Europe to better deliver its renowned China-focused ETFs to investors in the region. In addition to launching UK/Europe-specific versions of its most popular US-listed funds, KraneShares also develops strategies tailored to meet the specific needs of its UK/European clients. London Stock Exchange KraneShares London Stock Exchange London Stock Exchange AMSTERD EURONEXT#3□ KraneShares Investment Strategies to Capture China's Growing Importance In Global Portfolios China Core China Thematic UCITS Solutions Overview KA50 KraneShares MSCI China A 50 Connect UCITS ETF KraneShares CSI China Internet UCITS ETF KWEB Listings: ISE, LSE, MIL, XETRA Listing: ISE, LSE, AEX*, MIL**, XETRA Marketing Passports: KESG Marketing Passports: CHIN UK, Netherlands, Spain, Portugal, Switzerland, Finland, Italy, Germany, France Available Currency Share Class: USD $ Trading Currency on MIL: Euro € KraneShares ICBCCS S&P China 500 Index UCITS Listings: ISE, LSE Marketing Passports: UK, Netherlands, Sweden, Finland, Italy, Germany, France Available Currency Share Class: USD $ Trading Currency on MIL: Euro € China Fixed Income UK, Netherlands, Spain, Portugal, Switzerland, Luxembourg Finland, Italy, Germany, Sweden, France, Available Currency Share Class: USD $, Euro €, Sterling £ Trading Currency on MIL: Euro € KraneShares ICBCCS SSE STAR Market KSTR 50 Index UCITS ETF Listing: ISE, LSE, MIL**, XETRA Marketing Passports: UK, Netherlands, Switzerland, Finland, Italy, Germany, Sweden, France Available Currency Share Class: USD $, Euro € Trading Currency on MIL: Euro € KraneShares MSCI All China Health Care KraneShares Bloomberg China Bond KURE Index UCITS ETF KBND Inclusion UCITS ETF Listings: ISE, LSE Marketing Passports: UK, Netherlands, Spain, Portugal, Switzerland, Italy, Germany Available Currency Share Class: USD $ * USD $ share class ** Euro € share class Listing: ISE, LSE, MIL, XETRA Marketing Passports: UK, Netherlands, Switzerland, Finland, Italy, Germany, Sweden, France, Luxembourg Available Currency Share Class: USD $ Trading Currency on MIL: Euro € KARS KGRN Sustainable Investment SFDR Classification: Article 8 KraneShares MSCI China ESG Leaders UCITS ETF Listings: ISE, LSE, MIL, XETRA Marketing Passports: UK, Netherlands, Spain, Portugal, Switzerland, Finland, Italy, Germany, Sweden, France Available Currency Share Class: USD $ Trading Currency on MIL: Euro € KraneShares Electric Vehicles & Future Mobility ESG Screened UCITS ETF Listings: ISE, LSE, MIL, XETRA Marketing Passports: UK, Netherlands, Italy, Sweden, Finland, Luxembourg, France Available Currency Share Class: USD $ Trading Currency on MIL: Euro € KraneShares MSCI China Clean Technology UCITS ETF Listings: ISE, LSE, MIL, XETRA Marketing Passports: UK, Netherlands, Switzerland, Italy, Sweden, Finland, Germany, France Available Currency Share Class: USD $ Trading Currency on MIL: Euro €#4KraneShares CHIN KraneShares ICBCCS S&P China 500 Index UCITS ETF Investment Strategy: CHIN is a passively managed, index tracking UCITS ETF that seeks to measure the performance of the S&P China 500 Index. The S&P China 500 Index comprises 500 of the largest, most liquid Chinese companies listed on all Chinese stock exchanges, including Mainland China, Hong Kong, and the United States. Companies available for inclusion must be headquartered in China and meet the market capitalization and liquidity minimums required by S&P's index methodology. CHIN Features: . • Strategic ownership of China as an asset class. Exposure to companies benefitting from increasing domestic consumption by China's growing middle class. Exposure to Chinese companies listed in the United States, Hong Kong, and Mainland China. China Broad Equity Market Highlights: . The increased availability of Chinese equities to foreign investors over the past decade has brought about the rise of China as an asset class. • • China has the world's second largest economy and equity market, with a capitalization of over $9 trillion.' Only 7% of Mainland China's stock market is owned by foreigners.2 1. Data from MSCI as of 31 December, 2022. In order to capture the entire China opportunity, we added together the full market caps of the Shenzhen and Shanghai Stock Exchanges and then added the MSCI China Index market capitalization to arrive at the market cap for each year. 2. UBS. "China A-shares: FAQs, facts, and figures". 6/Nov/2021, retrieved 30/Sep/2023. 4#51990 1990 2002 KraneShares The Evolution of China's Capital Markets and KraneShares 上海證券交易所 SHANGHAI STOCK EXCHANGE 深圳证券交易所 SHENZHEN STOCK EXCHANGE Shanghai and Shenzhen Stock Exchanges launch QFII is established allowing the first international access to A-share market 2011 RQFII is established •Allowing international access to A-share market with daily liquidity ⚫ First international funds with Interbank Bond Market exposure approved 2013 KraneShares launches its first U.S. listed China ETF KWEB ☐ KraneShares™ Nov 2014 Shanghai Hong Kong Stock Connect launches Eligible Shanghai listed stocks now freely tradable through international brokerage accounts Dec 2014 KraneShares E Fund China Commercial Paper ETF (Ticker: KCNY) Launches* KraneShares partners with E Fund Asset Management to list KCNY, giving investors exposure to China's Interbank Bond Market *On June 4, 2021, the KraneShares E Fund China Commercial Paper ETF (ticker: KCNY) was renamed to the KraneShares Bloomberg China Bond Inclusion Index ETF (ticker: KBND), and began tracking the Bloomberg China Inclusion Focused Bond Index. S&P Aug 2015 S&P launches the China 500 Index Aug 2016 Oct 2016 China's currency, the RMB, designated a reserve currency by the International Monetary Fund Shenzhen Hong Kong Stock Connect launches Eligible Shenzhen listed stocks now freely tradable through international brokerage accounts Mar 2018 Oct 2017 CICC 中金公司 CICC (China International Capital Corporation) acquires a 50.1% majority stake in Krane Funds Advisors, LLC Bloomberg announces it will add China's Interbank Bond Market to the Bloomberg Global Aggregate Indices starting April 2019 Oct 2021 HKEX launches futures contracts for the MSCI China A 50 Connect Index LO Oct 2023 CHIN Introduction KraneShares ICBCCS S&P China 500 Index UCITS ETF (Ticker: CHIN) KraneShares partners with WisdomTree#6KraneShares The Index Matters S&P is a world-leading resource for benchmarks and investable indices. Index Overview S&P Clients in 71 Countries and 21 offices worldwide Index Services (Index Licensing, Custom Indices, and Data and Benchmarking) C 1/3 of index mutual funds are linked to the S&P 500, more than a quarter of all ETFs are linked to an S&P DJI index 1. As of Jun 20, according to S&P LLC, retrieved 31/Mar/23. For illustrative purposes only. Indexes are unmanaged and one cannot invest directly in an index. 6#7KraneShares Index Overview What is the S&P China 500 Index? The S&P China 500 Index comprises 500 of the largest, most liquid Chinese companies while approximating the sector composition of the broader Chinese equity market. S&P Dow Jones Indices A Division of S&P Global S&P Dow Jones Indices helps investors around the globe make decisions with conviction As the world's leading resource for benchmarks and investable indices, their solutions are widely considered indispensable in tracking market performance, evaluating portfolios, and developing investment strategies." 1. S&P Dow Jones Indices as of 30/Sep/2023 Potential benefits of the S&P China 500 Index: • Industry representation and diversification* • Targets the complete opportunity set • Passive investment approach • Access to leading companies and A-Share exposure *Diversification does not guarantee a profit or ensure against a loss. 7#8KraneShares Defining an Asset Class - The "MAP" Framework G Asset Class Characteristic Market Size Asset classes need to be sizable, since most allocators prefer strategic allocations that are greater than 5%. Market size is perhaps the simplest metric and indicates the significance of the opportunity. Availability A large investment category is not sufficient, since not every market is accessible or investable. Availability ensures global investors can participate in a market and that there is sufficient capacity and volume. Portfolio Impact Even if the market size is large and availability is high, the investment has to be differentiated compared to everything else in the portfolio. Otherwise, portfolios may be overexposed to a set of characteristics that are already owned somewhere else. Analysis Summary 1. Data from MSCI as of 31/Dec/2022. We define China's equity market as the sum of all public shares of Chinese companies regardless of where they are listed. The adjusted market capitalization of the Chinese equity market represents 9.6% of the global equity market.1 China's equity market has historically been difficult for investors outside of China to access. Nonetheless, thanks to ambitious inclusion efforts, starting in 2002, Chinese equities have become available to foreign investors.1 The unique performance characteristics of China's equity market, which diverge from emerging markets outside of China, warrant its designation as a distinct asset class in diversified portfolios. 8#9☐ KraneShares™ The size of China's equity market is large enough to be considered its own asset class. China has the world's second largest economy and stock market. ☑Market Size 2022 Full MARKET CAPITALIZATION ($bb)* Top 5 Country Weights in the MSCI All Equity Asset Class Country World Index (GDP Weighted)1 USD Billions % 30 30 United States 35,545 37.68 Europe 11,802 12.51 25 25 Japan 4,071 4.32 Developed Market Equities Pacific ex-Japan 20 2,318 2.46 20 Other (Israel and Canada) 21,197 22.47 15 TOTAL DEVELOPED 74,933 79.43 10 Emerging Markets ex-China 10,050 10.65 5 Rest of the World China** 9,060 9.60 Frontier 295 0.31 || 0 TOTAL EM and FM TOTAL 19,405 94,339 20.57 United States China Japan Germany France 100 1.Data from MSCI as of 3/31/2023. See pages 18-19 for index definitions. Data from MSCI as of 31/Dec/2022. Due to rounding numbers may not add up to 100%. *Full market capitalization based on MSCI Investable Market Indexes (IMI). Historic adjusted market Capitalizations based on MSCI Standard Indexes. Adjusted market caps reflect free-float or shares that are freely traded in the open market. The free-float adjustment reduces the overall market by about 1/3. **China includes Hong Kong, ADR and Mainland listed Chinese companies. Market capitalization formula: MSCI China A International IMI + Hong Kong & ADR constituents within the MSCI Emerging Market Index. 9#10KraneShares Inclusion efforts spanning the past 19 years have made China's equity market available to outside investors. Availability • In 2002, the Chinese government launched the Qualified Foreign Institutional Investor (QFII) Quota Program, which allowed institutional investors who could demonstrate a limited capacity to repatriate earnings to purchase stocks listed on Mainland exchanges. A . Share Type Weight in Overall China Equity Description Market 53.16% Listed on the Shanghai and Shenzhen Exchanges in RMB3 0.16% Listed on the Shanghai and Shenzhen Exchanges in USD and HKD3 Listed on Mainland Exchanges 53.32% P Chip From 2014 to 2016 the Stock Connect program was launched which allowed foreign investors to purchase Mainland listed stocks through accounts in Hong Kong without obtaining approval from the Chinese government.1 On September 3, 2018, MSCI completed the first of including Mainland listed A-shares in their Global Standard Indexes, and the inclusion factor reached 20% in November 20192. 98.3% of Chinese stocks are listed in Hong Kong, Shenzhen (Mainland), or Shanghai (Mainland) exchanges, while 1.7% are listed in New York using American Depositary Receipts (ADRs).¹ H Red Chip 28.79% Listed on the Hong Kong Stock Exchange HKSE) and incorporated in Cayman, Bermuda, British Virgin Islands; privately managed 12.76% Listed on the Hong Kong Stock Exchange 3.42% Listed on the HKSE, incorporated outside of Mainland China; controlled by the People's Republic of China (PRC) Listed on Hong Kong Exchange 44.97% ADR 1.70% Listed on overseas exchanges including the United States and Singapore Non-ADR 1. Data from MSCI as of 31/Dec/2022. Listed on Overseas Exchanges 1.70% 2. Data from MSCI "MSCI Equity Indexes November 2019 Index Review", as of 07/Nov/2019, retrieved 31/Dec/2022. 3. RMB Chinese Renminbi; HKD - Hong Kong Dollar Data from MSCI as of 12/31/2022. Listed on overseas exchanges but not considered an ADR 10#11KraneShares™ Portfolio Impact The unique characteristics of China's equity market performance demonstrate its capacity to have a distinct portfolio impact and provide diversification benefits • Over the past 23 years, China was the best performer in 6 years and the worst performer in 7 years. By contrast, the U.S. was the best performer in 6 years and the worst in 4 years. Ranked Annual Performance of Equity Asset Classes RANK 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 1st -1.39 -5.82 60.33 28.46 35.19 99.20 98.89 -29.21 81.47 28.65 1.36 24.57 2011 2012 2013 2014 2015 2016 2017 2018 31.79 24.09 9.57 14.29 41.18 -5.04 2019 2020 2021 2022 2023 YTD 2023 YTD Rank 30.88 33.40 26.45 -5.72 13.13 United States 2nd -9.88 -6.42 53.31 27.49 25.52 33.72 34.84 -37.57 76.42 21.86 -11.06 20.87 27.16 12.69 0.69 10.89 31.24 -10.30 27.63 20.72 16.30 -14.83 10.54 Japan 3rd -12.39 -10.28 45.77 20.88 13.81 32.02 30.73 -46.42 72.81 16.91 -12.79 19.94 25.23 7.20 -2.84 7.85 26.79 -12.42 23.77 14.48 10.03 -16.74 8.05 Europe 4th -19.90 -14.65 38.54 15.86 11.14 27.36 13.86 -50.50 35.83 15.44 -14.33 19.12 5.49 -0.47 -3.05 5.00 25.88 -12.88 19.61 12.56 4.68 -19.85 7.37 Frontier 5th -22.23 -18.38 35.91 10.14 9.42 14.67 5.44 -53.93 26.25 14.77 -17.55 16.96 4.28 -4.02 -8.47 2.38 25.51 -14.60 18.36 6.55 4.29 -20.16 6.20 Emerging Markets ex-China 6th -29.40 -23.09 28.41 -3.29 5.14 6.24 -4.23 -54.49 25.61 3.88 -18.55 15.33 2.98 -5.00 -17.33 -0.40 23.99 -14.86 16.21 5.38 1.71 -23.48 -0.03 Pacific ex-Japan 7th -55.72 6.25 2.61 -19.04 8.18 -4.32 -6.18 -18.30 -7.87 21.19 -23.27 14.10 -2.67 -12.91 -27.04 -7.87 China China Emerging Markets ex-China Japan Pacific ex-Japan Europe United States Frontier Index returns are for illustrative purposes only and do not represent actual Fund performance. Index returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. Data from MSCI as of 31/Dec/2022. See pages 20 and 21 for definitions. No full year data for frontier markets prior to 2008. 11#12KraneShares China's historical pattern of returns exhibits low correlations to other regions. Portfolio Impact Average correlations between China's equity market and other major equity markets, including other emerging markets, have remained low over the past 20 years, maintaining correlation coefficients generally lower than 0.7. . Correlations remain low in bull market and bear market environments. Return, Risk, and Correlation (2003-2022) Return, Risk, and Correlation (2009-2022) Asset Class Annualized Annualized Return Volatility* China United States Europe Japan Pacific ex- Japan EM ex- China Asset Class Annualized Annualized Return Volatility* China United States Europe Japan Pacific ex- Japan EM ex- China China 11.4% 23.8% 1.00 United States 9.8% 14.7% 0.48 1.00 Europe 7.0% 18.0% 0.56 0.87 1.00 Japan 5.8% 15.0% 0.44 0.66 0.69 1.00 China 7.5% 21.6% 1.00 United States 13.3% 15.3% 0.45 1.00 Europe 7.1% 18.3% 0.50 0.86 1.00 Japan 5.7% 14.2% 0.41 0.71 0.73 1.00 Pacific ex- Japan 9.8% 19.6% 0.69 0.79 0.86 0.67 1.00 Emerging Markets ex- China 8.9% 21.0% 0.66 0.77 0.84 0.68 0.90 1.00 Pacific ex- Japan 9.5% 19.5% 0.64 0.79 0.85 0.67 1.00 Emerging Markets ex- China 7.3% 19.7% 0.60 0.77 0.83 0.65 0.89 1.00 Frontier Markets 4.1% 16.1% 0.51 0.69 0.76 0.61 0.81 0.85 Index returns are for illustrative purposes only and do not represent actual Fund performance. Index returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. Data from MSCI as of 31/Dec/2022. See pages 20 and 21 for definitions. Volatility: is the degree of variation of a trading price series over time as measured by the standard deviation of returns. *Standard deviation is a quantity calculated to measure the extent of deviation for a group as a whole. A low standard deviation indicates that the data points tend to be closer to the mean (also called the expected value) of the set, while a high standard deviation indicates that the data points are spread out over a wider range of values. 12#13Why A Shares? KraneShares™ The China A-Share market is too big to ignore. Even though China is the world's second largest economy and stock market, China A-Shares are still underrepresented in global capital markets. 70 20 60 60 Top 5 Country Weights in the MSCI All Country World Index (Market Cap Weighted)¹ 35 30 Top 5 Country Weights in the MSCI All Country World Index (GDP Weighted)1 50 25 40 20 20 30 20 30 20 15 10 5 10 0 0 United States Japan United Kingdom China United States China Japan Germany India France 1. Data from MSCI as of 30/Sep/23. See end of presentation for definitions. 13#14KraneShares A-shares make up nearly one half of China's equity market by market capitalization. China Equity Market Breakdown By Market Capitalization Mainland China A- Shares 49% Hong Kong Listed 46% Source: MSCI as of 30/Sep/2023. See end of presentation for definitions. U.S. Listed 5% Why A Shares? 14#15□ KraneShares™ S&P China 500 Index We believe the S&P China 500 Index provides a more accurate representation of China's capital markets compared to the MSCI China Index Comparison S&P China MSCI China 500 Index Breakdown By Listing Location 80 70 Broad exposure to China's equity market 60 50 № 40 30 A Shares Weight Proportionate to Market Cap X 20 10 0 Includes only the 500 most liquid companies Shanghai & Shenzhen × Hong Kong USA S&P China 500 MSCI China Data from Bloomberg as of 30/Sep/2023. Index returns are for illustrative purposes only. Index returns do not reflect fees or other costs associated with investing. Indexes are unmanaged, and one cannot invest directly in an index. Past performance is no guarantee of future results. See the end of the presentation for definitions. 15#16S&P China 500 Index 6/1/2018 Growth of 10,000 units 12,000 10,000 8,000 6,000 4,000 2,000 8/1/2018 10/1/2018 2/1/2019 4/1/2019 6/1/2019 8/1/2019 10/1/2019 2/1/2020 12/1/2018 12/1/2019 4/1/2020 14,000 6/1/2020 8/1/2020 16,000 回 KraneShares Historical Performance of the S&P China 500 Index Over the past five years, the S&P China 500 Index has outperformed the MSCI China Index, partly due to the higher weight of A-Shares. Historical Performance 10/1/2020 12/1/2020 2/1/2021 4/1/2021 6/1/2021 -S&P China 500 MSCI China Index Data from Bloomberg as of 30/Sep/2023. Index returns are for illustrative purposes only. Index returns do not reflect fees or other costs associated with investing. Indexes are unmanaged, and one cannot invest directly in an index. Past performance is no guarantee of future results. See the end of the presentation for definitions. 16 8/1/2021 10/1/2021 12/1/2021 2/1/2022 4/1/2022 6/1/2022 8/1/2022 10/1/2022 12/1/2022 2/1/2023 4/1/2023 6/1/2023 8/1/2023#17S&P China 500 Index KraneShares The S&P China 500 Index offers exposure to mostly large-cap companies in a diverse array of sectors S&P China 500 Sector Composition Market Capitalization Breakdown Energy Communication. Services Utilities 3% 3% 7% Health Care 8% Real Estate 2% Financials 17% Consumer Staples Consumer Discretionary 15% 9% Materials 10% Information Technology 13% Industrials 13% Mid Cap 10% Large Cap 90% Data from Bloomberg as of 30/Sep/2023. Index returns are for illustrative purposes only. Index returns do not reflect fees or other costs associated with investing. Indexes are unmanaged, and one cannot invest directly in an index. Past performance is no guarantee of future results. See the end of the presentation for definitions. 17#18KraneShares Index Methodology S&P China 500 Filtering Process for Index Constituent Selection Total Investable Universe Constituent Selection Weighting Constituents from the S&P Total China BMI and meet the following criteria: Float adjusted market cap of at least 300M USD (250M USD for existing constituents) Six-month median daily value of at least 1M USD (0.8M USD for existing constituents) Largest 500 eligible companies (measured by total market cap including all share classes) are selected within each GICS sector with the goal of matching the sector weights of the broader S&P Total China BMI Weighted by float-adjusted market cap Source: S&P, retrieved 30/Jun/23. See end of presentation for definitions. Diversification does not ensure a profit or guarantee against a loss. S&P China 500 Index 18#19回 KraneShares KraneShares ICBCCS S&P China 500 Index UCITS ETF KraneShares ICBCCS S&P China 500 Index UCITS ETF is "a sub fund of KraneShares ICAV (the "ICAV"). The ICAV is authorised as a UCITS in Ireland and regulated by the Central Bank of Ireland. For Investors in the United Kingdom (UK). Investors should read the Key Investor Information Document and Prospectus prior to investing. Investors should read the Prospectus, Supplement, UK KIID, and/or PRIIP KIID prior to investing. The Fund seeks to track the performance of an index composed of companies from developed countries. Investment Strategy: CHIN is a passively managed, index tracking UCITS ETF that seeks to measure the performance of the S&P China 500 Index. The S&P China 500 Index comprises 500 of the largest, most liquid Chinese companies listed on all Chinese stock exchanges, including Mainland China, Hong Kong, and the United States. CHIN Performance History as of 16/Oct/2023: Fund Details Listed Exchanges SEDOL Total Annual Fund Operating Expense Inception Date Distribution Frequency Index Name Net Assets Number of Holdings UK Reporting Fund Status Investment Structure Base Currency Fund NAV Index Data as of 16/Oct/2023 Top 10 Holdings as of 16/Oct/2023 Holdings are subject to change. % LSE, ISE TENCENT HOLDINGS LTD 6.44 ALIBABA GROUP HOLDING LTD 4.33 BQXHZD7 KWEICHOW MOUTAI CO LTD-A 3.65 0.55% 12/Oct/2023 Annual ICBCCS S&P China 500 Index UCITS ETF MEITUAN-CLASS B CONTEMPORARY A-A PING AN INSURA-A PDD HOLDINGS INC 1.95 1.7 1.65 1.62 $39,916,690 CHINA MERCHANTS BANK-A 1.6 574 CHINA CONSTRUCTION BANK-H 1.57 Reporting Fund NETEASE INC 1.05 UCITS USD, CNH, EUR Cumulative % Average Annualized % 3 Mo 6 Mo Since Inception 1 Yr 3 Yr 5 Yr Since Inception The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investors shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please visit kraneshares.eu/chinln. Index returns are for illustrative purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index.#20KraneShares™ Index definitions: MSCI China Index: captures large and mid cap representation across China H shares, B shares, Red chips and P chips. MSCI ACWI Index: captures large and mid cap representation across 23 Developed Markets (DM) and 23 Emerging Markets (EM) countries. S&P China 500 Index: comprises 500 of the largest, most liquid Chinese companies while approximating the sector composition of the broader Chinese equity market. All Chinese share classes including A-shares and offshore listings are eligible for inclusion. MSCI China A Onshore IMI USD Net Index: captures large, mid and small cap representation across China securities listed on the Shanghai and Shenzhen's exchanges MSCI China All Shares USD Net Index: The MSCI China All Shares Index captures large and mid-cap representation across China A-shares, B-shares, H-shares, Red-chips, P- chips and foreign listings (e.g. ADRs). The index aims to reflect the opportunity set of China share classes listed in Hong Kong, Shanghai, Shenzhen and outside of China. It is based on the concept of the integrated MSCI China equity universe with China A-shares included. The index was launched on June 26, 2014. MSCI Emerging Markets Index: MSCI Emerging Markets Index captures large and mid cap representation across 23 Emerging Markets (EM) countries. With 834 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. 20 20#21□ KraneShares™ RETURN, RISK & CORRELATION Developed Markets Emerging Markets China (All China) United States Europe Japan Pacific ex-Japan Emerging Markets Excluding China (EM ex China) Frontier INDEX MSCI WORLD INDEX Inception Date: Mar 31, 1986 MSCI EMERGING MARKETS INDEX Inception Date: Jan 01, 2001 MSCI CHINA ALL SHARES INDEX Inception Date: Jun 26, 2014 From June 25, 2014 through October 31, 2008, MSCI CHINA A ONSHORE + MSCI CHINA was used to calculate return. MSCI CHINA A ONSHORE reflects the percent of A-Shares within the entire investable China equity market while MSCI CHINA reflects the percent of H shares, B shares, Red chips, P chips and foreign listings. From November 1, 2008 through May 10, 2005, 31.15% MSCI CHINA A ONSHORE Index + 68.03% MSCI CHINA Index was used to calculate return. From May 9, 2005 through January 1st, 2001, 31.15% Shanghai Composite Index + 68.03% MSCI CHINA Index was used to calculate return. MSCI USA INDEX Inception Date: Mar 31, 1986. MSCI EUROPE INDEX Inception Date: Mar 31, 1986. MSCI JAPAN INDEX Inception Date: Mar 31, 1986. MSCI Pacific EX JAPAN INDEX Inception Date: Aug 31, 1987 MSCI EMERGING MARKETS EX CHINA INDEX Inception Date Mar 09, 2017. Prior to start date, MSCI EMERGING MARKETS INDEX minus the returns of securities from MSCI CHINA was used to calculate return. MSCI CHINA reflects the percent of China within the MSCI EMERGING MARKETS INDEX. MSCI FRONTIER MARKETS INDEX Inception Date: Dec 18, 2007 INDEX DEFINITION MSCI World Index (Net USD): The MSCI World Index captures large and mid cap representation across 23 Developed Markets (DM) countries. With 1,644 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. Inception date: Mar 31, 1986. MSCI Emerging Markets Index (Net USD): MSCI Emerging Markets Index captures large and mid cap representation across 23 Emerging Markets (EM) countries. With 834 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. Inception date: Jan 1, 2001. MSCI China All Shares Index (Net USD): MSCI China All Shares Index captures large and mid-cap representation across China A shares, B shares, H shares, Red chips, P chips and foreign listings (e.g. ADRs). The index aims to reflect the opportunity set of China share classes listed in Hong Kong, Shanghai, Shenzhen and outside of China. It is based on the concept of the integrated MSCI China equity universe with China A-shares included. Inception date: Jun 26, 2014. MSCI China A Onshore Index (Net USD): The MSCI China A Onshore Index captures large and mid cap representation across China securities listed on the Shanghai and Shenzhen exchanges. Inception date: May 10, 2005. MSCI China Index (Net USD): The MSCI China Index captures large and mid cap representation across China H shares, B shares, Red chips, P chips and foreign listings (e.g. ADRs). With 153 constituents, the index covers about 85% of this China equity universe. Inception date: Jan 1, 2001. Shanghai Composite Index (Net USD): is a stock market index of all stocks that are traded at the Shanghai Stock Exchange. Inception date: Jul 15, 1991. MSCI USA Index (Net USD): The MSCI USA Index is designed to measure the performance of the large and mid cap segments of the US market. With 622 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in the US. Inception date: Mar 31, 1986. MSCI Europe Index (Net USD): The MSCI Europe Index captures large and mid cap representation across 15 Developed Markets (DM) countries in Europe. With 443 constituents, the index covers approximately 85% of the free float-adjusted market capitalization across the European Developed Markets equity universe. Inception date: Mar 31, 1986. MSCI Japan Index (Net USD): the MSCI Japan Index is designed to measure the performance of the large and mid cap segments of the Japanese market. With 321 constituents, the index covers approximately 85% of the free float- adjusted market capitalization in Japan. Inception date: Mar 31, 1986. MSCI Pacific ex Japan Index (Net USD): The MSCI Pacific ex Japan Index captures large and mid cap representation across 4 of 5 Developed Markets (DM) countries in the Pacific region (excluding Japan). With 148 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. Inception date: Aug 31, 1986 MSCI Emerging Markets ex China Index (Net USD): The MSCI Emerging Markets ex China Index captures large and mid cap representation across 23 of the 24 Emerging Markets (EM) countries* excluding China. With 692 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. Inception date: Mar 09, 2017. MSCI Frontier Markets Index (Net USD): The MSCI Frontier Markets Index captures large and mid cap representation across 29 Frontier Markets (FM) countries. The index includes 109 constituents, covering about 85% of the free float- adjusted market capitalization in each country. Inception date: Dec 18, 2007.#22KraneShares™ Term definitions: Investable Market Index (IMI): Refers to an index consisting of stocks that have been determined by MSCI to be suitable for international investors. Global Industry Classification Standard (GICS): is a common global classification developed in 1999 by MSCI and Standard & Poor's for use by the global financial community. Compound Annual Growth Rate (CAGR): is the measure of an investment's annual growth rate over time, with the effect of compounding taken into account. Qualified Foreign Institutional Investor (QFII/RQFII):The Qualified Foreign Institutional Investor program grants access to China's domestic stock markets to foreign institutional investors that register with and are approved for trading by the State Administration of Foreign Exchange (SAFE). Until the launch of the Stock Connect program in 2016, this and the similar Registered Qualified Foreign Institutional Investor (RQFII) were the only means by which foreign investors could access stock markets in Mainland China. Renminbi: The official currency of the People's Republic of China. Bull Market: A market in which share prices are rising, encouraging buying. Bear Market: A market in which prices are falling, encouraging selling. 22#23KraneShares™ Important Notes Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' full and summary prospectus, which may be obtained by visiting www.kraneshares.eu. Read the prospectus carefully before investing. Risk Disclosures The views and opinions expressed in this material are those of authors of the Krane Fund Advisors. These opinions have been given in faith, but are subject to change without notice. It is the responsibility of the investor to evaluate the accuracy, completeness and usefulness of any opinions, advice or other information provided. Instead, investors must buy and sell UCITS shares in the secondary market with the assistance of a stockbroker. UCITS shares are not individually redeemable with the issuing fund other than in large Creation Unit aggregations. In doing so, the investor may incur brokerage commissions and may pay more than net asset value (NAV) when buying and receive less than net asset value (NAV) when selling. The Net Asset Value per share is calculated in accordance with the "Determination of Net Asset Value" section of the prospectus, using the official closing price published by the relevant exchange. Shares are bought and sold at market price which may or may not be consistent with NAV. Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. The Funds are subject to political, social or economic instability within China which may cause decline in value. Fluctuations in currency of foreign countries may have an adverse effect to domestic currency values. Emerging markets involve heightened risk related to the same factors as well as increase volatility and lower trading volume. The ability of the Fund to achieve its respective investment objectives is dependent, in part, on the continuous availability of A Shares and the ability to obtain, if necessary, additional A Shares quota. If the Fund is unable to obtain sufficient exposure to limited availability of A Share quota, the Fund could seek exposure to the component securities of the Underlying Index by investment in other types of securities. The Fund is subject to political, social or economic instability within China which may cause decline in value. Emerging markets involve heightened risk related to the same factors as well as increase volatility and lower trading volume. Fluctuations in currency of foreign countries may have an adverse effect to domestic currency values. The Fund may invest in Initial Public Offerings (IPOs). Securities issued in IPOs have no trading history, and information about the companies may be available for very limited periods. In addition, the prices of securities sold in IPOs may be highly volatile. In addition, as the Fund increases in size, the impact of IPOs on the Fund's performance will generally decrease. Narrowly focused investments typically exhibit higher volatility. The Fund's assets are expected to be concentrated in a sector, industry, market, or group of concentrations to the extent that the Underlying Index has such concentrations. The securities or futures in that concentration could react similarly to market developments. Thus, the Fund is subject to loss due to adverse occurrences that affect that concentration. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility. This material is for information only and does not constitute an offer or recommendation to buy or sell any investment, or subscribe to any investment management or advisory service. It is not, under any circumstances, intended for distribution to the general public. You are accessing information which constitutes a financial promotion under section 21 of the Financial Services and Markets Act 2000 ("FSMA"). In relation to the United Kingdom, this information is only directed at, and may only be distributed to, persons who are "Investment Professionals" (being persons having professional experience in matters relating to investments) within the meaning of article 19(5) of the FSMA (Financial Promotion) Order 2005 (the "Financial Promotion Order "), persons to whom any of paragraphs (2)(a) to (d) of article 49 (high net worth companies, unincorporated associations etc.) of the financial promotion order apply, or persons to whom distribution may otherwise lawfully be made. Any investment, and investment activity or controlled activity, to which this information relates is available only to such persons and will be engaged in only with such persons. Persons that do not have professional experience should not rely or act upon this information unless they are persons to whom any of paragraphs (2)(a) to (d) of article 49 apply to whom distribution of this information may otherwise lawfully be made. 23#24☐ KraneShares™ Risk Disclosures Continued: In Switzerland, the Fund has appointed as Swiss Representative Waystone Fund Services (Switzerland) SA, Av. Villamont 17, 1005 Lausanne, Switzerland, Tel: +41 21 311 17 77, email: [email protected]. The Fund's paying agent is Helvetische Bank AG. In respect of the Shares distributed in or from Switzerland, the place of performance and jurisdiction is Lausanne (Switzerland). Although the information provided in this document has been obtained from sources which Krane Funds Advisors, LLC believes to be reliable, it does not guarantee accuracy of such information and such information may be incomplete or condensed. Krane Fund Advisors, LLC is appointed to act as investment manager in accordance with the requirements of the Central Bank. The Management Company may decide to terminate the agreements made for the marketing of the Fund in accordance with Article 93a of Directive 2009/65/EC. For additional fund documentation, please visit www.waystone.com or www.kraneshares.eu. To view our Summary of Investor Rights, please visit www.kraneshares.eu or click here. R_EU_KS 24