Business Valuation report

Contact Us:

+(1) 855 8KRANE8 [email protected]

www.kraneshares.com

KraneShares Electric Vehicles and Future Mobility ETF

KARS Fund Details As of 3/31/2019

Primary Exchange NYSE

Inception Date 1/18/2018

Cusip 500767827

Total Annual Fund Operating Expense 0.70%

Distribution Frequency Semiannually

Index Name Solactive Electric Vehicles and Future Mobility Index

Index Ticker Bloomberg: SOLKARSN

Number of Holdings (ex Cash) 57

KARS Performance History as of 3/31/2019

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 investor's 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 www.kraneshares.com.

ETF shares are not redeemable with the issuing fund other than in large Creation Unit aggregations. Instead, investors must buy or sell ETF Shares in the secondary market with the assistance of a stockbroker. 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 when selling. The NAV of the Fund’s shares is calculated each day the national securities exchanges are open for trading as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 P.M. Eastern time (the “NAV Calculation Time”). Shares are bought and sold at market price not NAV. Closing price returns are based on the midpoint of the bid/ask spread at 4:00 P.M. Eastern Time (when NAV is normally determined).

Index returns are for illustrative purposes only. Index performance returns do not reflect any management fees, transaction c osts or expenses. Indexes are unmanaged and one cannot invest directly in an index.

Cumulative % Average Annualized %

3 Mo 6 Mo Since Inception 1 Yr 3 Yr Since Inception

Fund NAV 15.31% -3.66% -16.30% -10.19% – -13.76%

Closing Price 16.70% -3.41% -15.85% -10.78% – -13.38%

Index 15.96% -2.67% -16.93% -10.55% – -14.36%

Investment Strategy:

KARS seeks to measure the performance of the Solactive Electric Vehicles and Future Mobility Index. The Index is designed to track the performance of companies engaged in the production of electric vehicles and/or their components, or engaged in other initiatives that may change the future of mobility. The Index includes issuers engaged in the electric vehicle production, autonomous driving, shared mobility, lithium and/or copper production, lithium-ion/lead acid batteries, hydrogen fuel cell manufacturing and/or electric infrastructure businesses.

Future Mobility Sector Highlights

• 55% of new car sales and 33% of the global car fleet are projected to be electric by 2040.1

• The global electric vehicle market is projected to command $2.7 trillion of total investment before 2040.2

• Autonomous vehicles and the resulting “passenger economy” are projected to generate a cumulative $8 trillion in global service revenues by 2050.3

KARS features:

• Access to global companies that operate in all areas of new transportation methods, passenger and freight, including electric vehicles, autonomous vehicles and shared mobility.

• Exposure to companies that lead the development of vehicle connectivity like Internet of Vehicles (IoV) and Intelligent Mobility.

• Exposure to the growth brought on by increased demand for lithium-ion battery and non-ferrous metals like lithium due to electric vehicle adoption.

• Exposure to equities listed in Mainland China, currently the world’s largest electric vehicle market.

1. Bloomberg New Energy Finance as of 5/21/2018, retrieved 3/31/2019. 2. Morgan Stanley Research. “The EV Infrastructure 55: A Diversified Way

to Play a Critical Enabler in the EV Theme.” Morgan Stanley. 17 October 2017

3. Lanctot, Roger. “Accelerating The Future: The Economic Impact of the Emerging Passenger Economy.” Strategy Analytics. June 2017.

Batteries and Non-ferrous

Metals

Autonomous Driving

Shared Mobility

Vehicle Connectivity

Electric Vehicles

Future Mobility Ecosystem

Data as of 3/31/2019

Contact Us:

+(1) 855 8KRANE8 [email protected]

www.kraneshares.com

Top Ten Fund Holdings As of 3/31/2019 The Fund’s Holdings Are Subject to Change.

Ticker %

TESLA INC TSLA US 3.90

FORD MOTOR CO F US 3.77

DAIMLER AG-REGISTERED SHARES DAI GR 3.73

NVIDIA CORP NVDA US 3.67

ALPHABET INC-CL A GOOGL US 3.65

GENERAL MOTORS CO GM US 3.62

TEXAS INSTRUMENTS INC TXN US 3.58

ANALOG DEVICES INC ADI US 3.55

BAIDU INC - SPON ADR BIDU US 3.54

BAYERISCHE MOTOREN WERKE AG BMW GR 3.38

KARS Sector Breakdown

KARS Country Breakdown

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.com. Read the prospectus carefully before investing.

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.

Narrowly focused investments typically exhibit higher volatility. The ability of the KraneShares Emerging Markets Consumer Technology Index ETF to achieve its investment objective is dependent, in part, on the continuous availability of A Shares and the ability to obtain, if necessary, additional A Shares quota. The fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses. The Fund may engage in securities lending. The Fund is non-diversified.

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.

The KraneShares ETFs are distributed by SEI Investments Distribution Company (SIDCO), which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Fund.

KARS

China, the United States, and Germany are leading the world in future mobility

Data from Bloomberg as of 12/31/2018

Data from Bloomberg as of 6/30/2018

1. International Energy Agency. “Global EV Outlook 2018.”, retrieved 3/31/2019.

2. Data from Bloomberg as of 3/31/2019.

China • New Electric Car Sales World Ranking (2017): 1st1

• Electric Vehicle Stock (2017): 1,227,7701

• Fund weight: 23.55%2

United States • New Electric Car Sales World Ranking (2017): 2nd1

• Electric Vehicle Stock (2017): 762,0601

• Fund weight: 44.10%2

Germany • New Electric Car Sales World Ranking (2017): 4th1

• Electric Vehicle Stock (2017): 109,5601

• Fund weight: 12.52%2

Data as of 3/31/2019 Data from Bloomberg as of 3/31/2019

* Others include Canada, Sweden, Austria, Japan, Australia, United Kingdom

Consumer Discretionary

38.80%

Information Technology

35.80% Materials 11.17%

Communication Services 7.19%

Industrials 7.04%

United States 44.06%

China 23.57%

Germany 12.53%

Chile 3.20%

Peru 2.19%

South Korea 2.15% Japan

2.12%

Netherlands 2.02%

Switzerland 1.93%

Zambia 1.63%

Others* 4.59%