Nikko launches high-risk 'disruptors' fund

An investment fund opened to the public today will give investors access to disruptors, Nikko Asset Management says.

Monday, September 16th 2019, 6:00AM

It has launched its ARK Global Disruptive Innovation Fund through its partnership with ARK Invest, based in the United States.

It is a PIE fund that invests in companies creating “disruptive innovation” changing the way the world works.

That includes those working in robotics, blockchain, automation, energy storage, genomic sequencing, artificial intelligence and internet technologies.

It uses an open research platform that pulls information from social media, crowd-sourced insights and “thought leaders” to identify investment opportunities.

Its focus is on early-stage and emerging companies on listed markets, with a high-conviction strategy.

It is aimed at investors with long time horizons and high risk tolerance, who want more diversification.

Nikko New Zealand managing director George Carter said his company believed disruption was a key component to investing in the future.

“Our world is fuelled by technological change. Advances in science and technology continue to happen at pace, and new innovations are being thought of everyday.”

ARK chief executive Cathie Wood said the fund offered long-term growth without the high costs and illiquidity usually associated with similar investments through venture capital funds.

“Over time, innovation will displace industry incumbents, increase efficiencies, and gain majority market share. More importantly, disruptive innovation impacts and concerns all of our lives and changes the way the world works.”

The fund has a management fee of 1.07% and expenses estimated at 0.26%. It aims to achieve an absolute return of 10% per annum over a rolling five-year period before fees, expenses and taxes, with a very high level of volatility. The minimum investment is $250.

Tags: disruptive innovation high-risk investment investment Nikko AM PIE