Strategy. To pursue its goal, the Fund will invest primarily in equity securities and depositary receipts of U.S. and foreign companies, including companies located in emerging markets, that are Carbon Emissions Reducers. The Fund defines Carbon Emissions Reducers for these purposes to be companies that are taking material steps to reduce (1) the carbon footprint of their products and/or services or (2) the carbon footprint of other companies. This includes companies in the supply chain of such companies and companies that are increasing their business with the companies taking material steps to reduce their carbon footprint. Companies that are moving aggressively to profit from the decarbonization movement, such as by repurposing existing operations or investing in new technologies so as to … Show more… To pursue its goal, the Fund will invest primarily in equity securities and depositary receipts of U.S. and foreign companies, including companies located in emerging markets, that are Carbon Emissions Reducers. The Fund defines Carbon Emissions Reducers for these purposes to be companies that are taking material steps to reduce (1) the carbon footprint of their products and/or services or (2) the carbon footprint of other companies. This includes companies in the supply chain of such companies and companies that are increasing their business with the companies taking material steps to reduce their carbon footprint. Companies that are moving aggressively to profit from the decarbonization movement, such as by repurposing existing operations or investing in new technologies so as to reduce their carbon footprint in the future and companies that provide products or services, including intellectual property, that are designed to enable other businesses to reduce carbon emissions, are examples of Carbon Emissions Reducers. The Fund is actively-managed by Krane Funds Advisors, LLC (the Adviser). The Adviser believes that investing in Carbon Emissions Reducers may offer the potential for above-average long-term growth, especially if environmental, social and corporate governance (ESG) factors become more consequential to investors. Since carbon dioxide emissions from human activities make up the majority of greenhouse gas (GHG) emissions, the production, deployment and use of clean and low-emission energy technologies and processes to reduce carbon dioxide emissions is consistent with the broad social objective of reducing GHG emissions. The Adviser seeks to invest in Carbon Emissions Reducers across industries, sectors and market capitalizations, including the energy, utilities, materials, industrials, and information technology sectors. The Adviser seeks to invest in companies that offer products and services that are expected to result in a future reduction of carbon emissions and benefit from the adoption of low-carbon emissions objectives. The Advisers process seeks to estimate the future valuations of companies not only based on current financial metrics, but also inclusive of the Advisers assessment of the potential future value of their decarbonization efforts. At the time of investment by the Fund, a company may not be a low carbon emitter, but rather will be actively seeking to reduce its carbon footprint and/or the carbon footprint of its suppliers and customers. For example, a producer of offshore oil drilling machinery would qualify for investment if it were repurposing its capabilities to develop offshore wind energy turbines. Criteria that the Adviser may consider in selecting companies for the Funds portfolio include: ? a companys position in its industry; ? its stated commitment to decarbonization and the existence of disclosed strategies and/or management incentives tied to successful decarbonization initiatives; ? its assets, products, customer base and exposure to geographic locations that the Adviser expects to benefit from decarbonization trends; ? its ability to derive and maintain a competitive advantage from its existing market position, processes, technologies and customer relationships as businesses transition to address decarbonization objectives; ? its capital allocation strategy, particularly with respect to decarbonization; ? its corporate and capital structure activity (including mergers, acquisitions and divestitures) to the extent it appears to the Adviser to be designed to facilitate an accelerated decarbonization transition; ? its prospective growth rate, potential returns and security valuation, from its investments in decarbonization-related areas; and ? its shareholder base, including the perceived motivations of its shareholders. Using proprietary, fundamental, bottom-up analysis of company-disclosed and third-party data, the Adviser analyzes sectors and industries that the Adviser expects to be impacted by societal, shareholder or governmental pressure to decarbonize, seeking to identify those in which positive business impacts from decarbonization appear most likely. Within each such sector and industry, the Adviser seeks to identify for the Fund companies that are well-positioned to benefit from the transition to a decarbonized world. The Adviser will exit a position if, in the opinion of the Adviser, a more attractive investment opportunity exists and/or if the thesis that drove the investment is no longer present. Under normal circumstances, the Fund will invest in approximately 30 to 50 companies. The Fund defines emerging markets as those in the MSCI Emerging Markets Index. The Fund may invest in derivative instruments (including swaps, futures, forwards, structured notes and options) for investment purposes, which may include altering the Funds exposure to currencies, sectors and individual issuers. The Fund is non-diversified. The Fund may engage in securities lending. Show less