Key Takeaways
- • Krane Funds Advisors and Mount Lucas partnered to launch the KFA Mount Lucas Index Strategy ETF (ticker: KMLM), a price-based managed futures index product designed for ETF investors seeking systematic exposure to global macro trends.
- • KMLM provides diversified exposure across 22 liquid futures contracts spanning 11 commodity markets, six currency pairs, and five global bond markets traded on U.S. and foreign exchanges.
- • The fund employs a long and short managed futures strategy, enabling investors to gain systematic exposure to price-based trading signals across commodities, currencies, and fixed income asset classes.
- • KMLM offers institutional and retail investors a transparent, index-based alternative to discretionary managed futures strategies, with the fund seeking to track the price performance of the KFA MLM Index before fees and expenses.
Summary
Krane Funds Advisors and Mount Lucas formed a strategic partnership to deliver a price-based managed futures index ETF, addressing institutional and retail investor demand for systematic exposure to global macro trading strategies. The resulting product, the KraneShares Mount Lucas Managed Futures Index Strategy ETF (KMLM), represents a collaborative effort to democratize access to managed futures through an exchange-traded vehicle.
KMLM invests in 22 liquid futures contracts spanning three primary asset classes: commodities (11 markets), currencies (six pairs), and global fixed income markets (five bond markets). These contracts trade on both U.S. and foreign exchanges, providing broad geographic and sector diversification. The fund's structure enables both long and short exposure, allowing investors to capture returns across market environments through systematic, rules-based trading signals rather than discretionary management.
The index-based approach distinguishes KMLM from traditional actively managed futures strategies. By tracking the KFA MLM Index, the fund offers transparent, cost-efficient exposure to price-based managed futures strategies while maintaining the flexibility of the ETF wrapper. This structure appeals to institutional investors and family offices seeking to incorporate managed futures allocations without the higher fees typically associated with separately managed accounts or hedge funds.
The partnership leverages Mount Lucas's expertise in systematic index construction and Krane Funds Advisors' distribution and product development capabilities in the ETF space. For investors implementing tactical allocation strategies or seeking diversification benefits uncorrelated with traditional equity and bond markets, KMLM provides direct access to global macro trends through commodities, currency movements, and fixed income futures in a liquid, transparent vehicle.
KMLM invests in 22 liquid futures contracts spanning three primary asset classes: commodities (11 markets), currencies (six pairs), and global fixed income markets (five bond markets). These contracts trade on both U.S. and foreign exchanges, providing broad geographic and sector diversification. The fund's structure enables both long and short exposure, allowing investors to capture returns across market environments through systematic, rules-based trading signals rather than discretionary management.
The index-based approach distinguishes KMLM from traditional actively managed futures strategies. By tracking the KFA MLM Index, the fund offers transparent, cost-efficient exposure to price-based managed futures strategies while maintaining the flexibility of the ETF wrapper. This structure appeals to institutional investors and family offices seeking to incorporate managed futures allocations without the higher fees typically associated with separately managed accounts or hedge funds.
The partnership leverages Mount Lucas's expertise in systematic index construction and Krane Funds Advisors' distribution and product development capabilities in the ETF space. For investors implementing tactical allocation strategies or seeking diversification benefits uncorrelated with traditional equity and bond markets, KMLM provides direct access to global macro trends through commodities, currency movements, and fixed income futures in a liquid, transparent vehicle.
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