Fund Description: KraneShares E Fund China Commercial Paper ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of KraneShares Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The KraneShares E Fund China Commercial Paper ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the CSI Diversified High Grade Commercial Paper Index. INDEX DESCRIPTION: The CSI Diversified High Grade Commercial Paper Index seeks to track the performance of investment grade on-shore renminbi (RMB)-denominated (or CNY) commercial paper issued by sovereign, quasi-sovereign and corporate issuers in the People’s Republic of China’s (PRC) and traded in the inter-bank bond market. Investment grade commercial paper, pertaining to the Index, is commercial paper that is issued by an issuer whose long-term bonds are rated AAA or equivalent by one or more Chinese credit rating agencies; or rated AA+ or equivalent and commercial paper is rated A-1. All constituents in the Index are unsecured, zero coupon bonds. To qualify for inclusion in the Index, a commercial paper issue must have at least RMB ¥ 600 million outstanding and a remaining term to final maturity of no more than one year and no less than one month. Index constituents are capitalization-weighted based on current amounts outstanding. The Index does not hedge against fluctuations in the relative value of RMB against the U.S. dollar. Thus, it is expected to have lower returns than an equivalent index that hedges against a weakening RMB if the RMB declines relative to the U.S. dollar. The Index is reconstituted and rebalanced on the first business day of each month. The Index is expected to reflect the commercial paper of approximately 463 issuers at each rebalance. FUND STRATEGY: Under normal circumstances, the Fund will invest at least 80% of its total assets in securities of the Index. The Fund uses a passive management strategy, known as representative sampling, that involves investing in a representative sample of securities that collectively have an investment profile similar to the Index. The Fund may invest up to 20% of its assets in investments that are not included in the Index, but which will help the Fund track its Index. Thus, the Fund may invest in RMB-denominated securities principally traded in the off-shore RMB (or CNH) market, which is an OTC market located in countries outside of the PRC. The Fund may also invest in debt securities issued in any denomination in other political jurisdictions, including Hong Kong and Singapore, unrated and high yield securities (commonly referred to as junk bonds), and investment company securities. Certain cash received by the Fund is expected to be invested in RMB-denominated short-term bond funds domiciled in the PRC including PRC Investment Companies. Cash may alternatively be invested in Chinese government bonds, held in a deposit account in China, or invested in U.S. money market funds or other U.S. cash equivalents. No more than 5% of the Fund’s net assets will be invested in any one PRC Investment Company or held in a deposit account in China. The Fund is non-diversified. FUND MANAGEMENT: Krane Funds Advisors LLC serves as the investment adviser to the Fund. The Fund’s Co-Adviser, E Fund Management (Hong Kong) Co., Limited (E Fund), has received a Renminbi Qualified Foreign Institutional Investor (RQFII) license from the China Securities Regulatory Commission and has applied for an initial quota to invest in PRC securities for the Fund’s use by China’s State Administration of Foreign Exchange. E Fund may also obtain a license on behalf of the Fund as a Qualified Foreign Institutional Investor. A PRC securities quota is required to purchase the securities contained in the Index.