KraneShares, the ETF issuer best known for its China-focused strategies, has announced the launch of Krane Model Portfolios.

Jonathan Krane, CEO of KraneShares.

Pitched at financial advisors, the model portfolios will seek to provide meaningful insight to investors through core, thematic, and dynamic models within China, emerging markets, and global categories.

The first portfolio in the suite is the Krane Dynamic Emerging Markets Strategy, a strategy that pairs a distinct allocation to China’s equity market with a broad ex-China emerging markets exposure.

The portfolio dynamically adjusts China’s weighting based on a proprietary, time-tested, and systematic methodology and is designed to act as a comprehensive, stand-alone emerging market portfolio or as a complement to an existing strategy.

“China’s weight within the portfolio can range between 10% and 70%, based on the current 40% benchmark exposure to China,” said Jonathan Shelon, Chief Operating Officer at KraneShares. “The portfolio can also invest up to 10% in cash, to preserve capital. We believe this dynamic approach can produce an important advantage in the portfolio’s return and risk profile when compared to static emerging market investments, particularly in turbulent times.”

The model currently comprises an 89.05% weight position in the KraneShares MSCI Emerging Markets ex China Index ETF (KEMX US) and a 10.95% weight in the KraneShares MSCI All China Index ETF (KALL US).

Advisors can implement the strategy through model delivery or by having Krane manage the strategy directly for them.

“Within emerging markets, KraneShares believes China is in a league of its own; an asset class unto itself distinguished by its market size and unparalleled growth,” said Jonathan Krane, Chief Executive Officer of KraneShares.

Krane added, “We believe that incorporating a strategic China investment model that distinguishes China from the rest of EM can enhance overall emerging market performance. The Krane Dynamic Emerging Markets Strategy is a great tool to enable a completion strategy around China.”