KRBN ETF Update: Nobel-Prize Winning Economist, Robert Engle, Named Chairman of Climate Finance Partners Advisory Board as John Kerry Joins Biden Administration
The KFA Global Carbon ETF (Ticker: KRBN) has appointed Nobel Laureate Robert Engle as Chairman of the Climate Finance Partners Advisory Board. Engle, a recognized expert in volatility and sustainable investing, will provide insights into global carbon allowance markets. He takes over from John Kerry, who has joined the Biden administration as U.S. Special Presidential Envoy for Climate. CLIFI collaborates with IHS Markit to track cap-and-trade programs, enhancing investor opportunities in carbon allowances. The IHS Markit Global Carbon Index returned 31.21% in 2020, reflecting growth in this market.
- Robert Engle's appointment as Chairman brings significant expertise in climate finance and sustainable investing.
- The KFA Global Carbon ETF is connected to a robust index that showed a return of 31.21% in 2020.
- Reliance on cap-and-trade regimes may pose risks if these frameworks alter or cease to exist.
- KRBN faces liquidity risk, which could hinder the selling or purchasing of investments effectively.
NEW YORK, Feb. 11, 2021 /PRNewswire/ -- Climate Finance Partners (CLIFI), the sub-advisor to the KFA Global Carbon ETF (Ticker: KRBN), announced that Robert Engle has been named Chairman of the Climate Finance Partners Advisory Board.
Robert Engle is the 2003 recipient of the Nobel Prize in Economics and a preeminent expert in volatility measurement within financial markets. He is a thought-leader in climate change risk and sustainable investing and a professor at the NYU Stern School of Business. As the CLIFI advisory board's chairman, Engle will provide market expertise and investor education on the global carbon allowance markets.
Engle assumes the chairman position as his predecessor, 68th Secretary of State of the United States, John Kerry, joins the Biden administration as U.S. Special Presidential Envoy for Climate.
Robert Engle commented, "Experts agree that the best way to curb pollution and save the planet is to put a price on carbon emissions. I believe the Biden Administration rejoining the Paris Agreement, among other factors, will help raise the global price per ton of carbon emissions significantly in the coming years."
Climate Finance Partners has worked with IHS Markit to create the Global Carbon Index, which offers broad coverage of cap-and-trade carbon allowances by tracking the most traded carbon credit futures contracts. Currently, the index covers the major European and North American cap-and-trade programs: European Union Allowances (EUA), California Carbon Allowances (CCA), and the Regional Greenhouse Gas Initiative (RGGI).
"We are thrilled to have Robert as the Chairman of the Climate Finance Advisory Board," said Eron Bloomgarden, Partner at Climate Finance Partners. "As a Nobel laureate in financial markets and thought-leader in climate change risk and sustainable investing, Robert's expertise is an invaluable asset to our mission to provide innovative climate finance solutions to address environmental challenges."
Investors can now invest in the global carbon allowance market through the KFA Global Carbon ETF (Ticker: KRBN), which is benchmarked to The IHS Markit Global Carbon Index. The IHS Markit Global Carbon Index returned
Index performance returns do not reflect any management fees, transaction costs or expenses. Indices are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results. High short term results may not be repeatable. Performance information for the KFA Global Carbon ETF can be found at the following website www.kfafunds.com/krbn.
About Climate Finance Partners
KRBN is sub-advised by Climate Finance Partners (CLIFI). CLIFI delivers innovative climate finance solutions and investment products to address capital needs for emerging environmental challenges. CLIFI is led by a team of investment professionals with deep experience in the fields of traditional investment and environmental finance.
About KFA Funds - A KraneShares Company
Krane Funds Advisors, LLC is the investment manager for KFA Funds and KraneShares ETFs. The firm believes that investors should have cost-effective and transparent tools for attaining exposure to a wide variety of asset classes. The KFA Funds product suite delivers differentiated, high-conviction investment strategies to global investors through identifying groundbreaking capital market opportunities and developing them into investment vehicles that offer a source of non-traditional diversification. Krane Funds Advisors, LLC is majority-owned by China International Capital Corporation (CICC).
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.kfafunds.com. Read the prospectus carefully before investing.
Risk Disclosures:
Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives.
KRBN is subject to liquidity risk, meaning that certain investments may become difficult to purchase or sell at a reasonable time and price. If a transaction for these securities is large, it may not be possible to initiate which may cause the Fund to suffer losses.
KRBN relies on the existence of cap and trade regimes. There is no assurance that cap and trade regimes will continue to exist, or that they will prove to be an effective method of reduction in GHG emissions. Changes in U.S. law and related regulations may impact how the Fund operates, increase Fund costs and/or change the competitive landscape. Funds may underperform other similar funds that do not consider conscious company/ESG guidelines when making investment decisions.
The value of a commodity-linked derivative investment typically is based upon the price movements of a physical commodity and may be affected by changes in overall market movements, volatility of the Index, changes in interest rates, or factors affecting a particular industry or commodity.
Futures and other contracts may have to be liquidated at disadvantageous times or prices to prevent the Fund from exceeding any applicable position limits established by the CFTC.
Investments in non-U.S. instruments may involve risk of loss due to foreign currency fluctuations and political or economic instability. The Fund's assets are expected to be concentrated in an industry or group of industries to the extent that the Index concentrates in a particular industry or group of industries. KRBN is non-diversified.
Fund shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the Fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.
The KFA Funds ETFs are distributed by SEI Investments Distribution Company which is not affiliated with Krane Funds Advisors, LLC, or Climate Finance Partners.
All opinions, evaluations, descriptions and statements do not purport to be complete and are subject to change. KFA makes no representation as to the adequacy of information and should not be construed as an endorsement by KFA, its affiliated entities, management, officers, employees and agents. [R_KS_SEI]
View original content:SOURCE Krane Funds Advisors, LLC; Climate Finance Partners
FAQ
Who is Robert Engle in relation to the KFA Global Carbon ETF?
What is the significance of the IHS Markit Global Carbon Index for KRBN?
What impact does John Kerry's departure have on Climate Finance Partners?
What risks does the KFA Global Carbon ETF face?
