Krane Funds Advisors and Mount Lucas Team Up to Provide a Price-based Managed Futures Index for ETF Investors
New York, NY, December 8, 2020 – Krane Funds Advisors, in partnership with Mount Lucas, recently launched the KFA Mount Lucas Index Strategy ETF (KMLM), a fund that will track the KFA MLM Index —a modified version of the MLM Index, a widely regarded benchmark for managed futures investing created by Mount Lucas in 1988.
This new partnership will seek to capitalize on the investment expertise of both firms. Mount Lucas is a pioneer in managed futures investing and will be the fund’s sub-advisor. Krane Funds, a leader in ETF investing and in providing investors with asset classes and market exposures that were previously only available to institutional investors will be the fund’s advisor.
The KFA Mount Lucas Index Strategy ETF will invest in 22 futures contracts—11 commodity markets, six currencies and five global bond markets—by tracking the KFA MLM Index, which evaluates market trading signals on a daily basis.
“We routinely see that institutional portfolios are underexposed to managed futures and over-exposed to equity risk,” said Timothy Rudderow, CEO & CIO of Mount Lucas. “This scenario is fine when volatility is low, but the investment world was reminded in 2020 why highly liquid and uncorrelated investments are important. There may be significant beta in managed futures, and we believe our Index is the best way to passively access that beta.”
“We are pleased to launch the KMLM ETF in partnership with Mount Lucas, leveraging their 30-year history and strong track record in the managed futures space,” said Jonathan Shelon, COO of Krane Funds Advisors. “The ETF seeks to deliver the Mount Lucas team’s expertise and the potential benefits of managed futures to all investors through a cost-effective1 and highly liquid ETF structure. Launching KMLM continues our mission in providing differentiated, high-conviction investment strategies to global investors.”
For more information about KMLM, visit kfafunds.com/kmlm, or talk to your financial advisor.
About Krane Funds Advisors
Founded in 2012, Krane Funds Advisors, LLC, is the investment manager for KFA Funds and KraneShares ETFs. We believe 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. We are passionate about identifying groundbreaking capital market opportunities and developing them into investment vehicles that offer a source of non-traditional diversification to our clients.
Krane Funds Advisors, LLC is majority-owned by China International Capital Corporation (CICC).
About Mount Lucas
Since 1986, Mount Lucas, based in Newtown, Pennsylvania, has provided innovative and alternative investment strategies to institutional and high-net-worth investors that enhance and diversify traditional investments. Mount Lucas’ investment professionals have extensive experience in the development and use of systematic investment strategies and has been a pioneer in offering investors unique solutions to complex problems across equity, fixed income, currency and commodity markets. The firm has approximately $1.3 billion in assets under management as of September 30, 2020.
1. Buying and selling shares of the KFA Funds may result in brokerage commissions.