Despite the negative rating, an area of strength of the firm is manager investment. Over 29% of the firm's assets are covered by invested managers, in an effort to align portfolio manager and shareholder interests. Kraneshares's longest-tenured managers do not possess the same experience as management teams at other firms, a detractor from its rating. Specifically, average asset-weighted tenure within the firm is only five years.
Kraneshares has a ways to go to become an industry-standard steward, resulting in a Low Parent Pillar rating.