Nikko Asset Management (“Nikko AM”) today announces that it is enhancing its disruptive innovation focused investment solutions by acquiring a minority stake in ARK Investment Management LLC (“ARK”). In this partnership Nikko AM will obtain exclusivity in select Asian geographies to offer ARK products and investment strategies and its investment team intends to continue working closely with ARK’s disruptive innovation focused analysts.
ARK has served as a sub advisor to Nikko AM’s Global Fintech Equity Fund, launched in Japan in December 2016 with total assets of over JPY 75 billion as of July 2017. The now enhanced partnership is a natural progression from that successful start.
“We are extremely excited to welcome ARK to the Nikko AM family. The established expertise of our inhouse investment team combined with ARK’s strategies focused on disruptive technology and innovation enable progressive solutions for our clients. Our Global Fintech Equity Fund is an example of the success we have already achieved together, and we are confident of more to come with this deepening of the connection,” said Nikko Asset Management President & CEO Takumi Shibata.
ARK is a leading US-based investment manager that utilizes an open research ecosystem to develop insights into disruptive innovation. Its analysts are organized by disruptive innovation themes that span sectors, geographies, and market capitalizations. ARK derives alpha by investing in leaders, enablers, and beneficiaries of disruptive technologies, with low overlap to broad-market indices. The firm has launched five ETFs, including four active ETFs, investing in themes such as Deep Learning and Mobility-as-a-Service. In addition, ARK has established an investment advisory service for institutional clients which utilizes ARK’s innovative strategies to diversify portfolios.
“We are honored and delighted that Nikko AM has cemented our partnership with an ownership interest in ARK,” said ARK CEO & Chief Investment Officer Catherine D. Wood. “Nikko AM’s appetite for innovation focused investment solutions is well aligned with ARK’s conviction that innovation is key to growth. An entirely new market of investors will benefit now from Nikko AM’s ability to deliver disruptive innovation, which is transforming both industries and the global economy, through ARK’s investment strategies.“
With Nikko AM’s investment, Catherine D. Wood, ARK’s founder and CEO, continues to own a majority stake in ARK, and Resolute Investment Managers, Inc., ARK’s strategic partner in the US, remains a minority shareholder in ARK.
About ARK Investment Management LLC
Headquartered in New York City, ARK Investment Management LLC is a federally registered investment adviser and privately held investment firm, specializing in thematic investing in disruptive innovation. The firm is rooted in over 40 years of experience in identifying and investing in disruptive innovations that are changing the way the world works and delivering outsized growth as industries transform. Through its open research process, ARK identifies companies that it believes are leading and benefiting from cross-sector innovations such as robotics, 3D printing, big data, machine learning, blockchain technology, cloud computing, energy storage, and DNA sequencing. ARK's investment strategies include: Industrial Innovation, Next Generation Internet, Genomic Revolution, Fintech Innovations, 3D Printing, Israel Innovative Technologies, and the overall ARK Disruptive Innovation Strategy.
For additional information regarding ARK's strategies, please visit www.ark-invest.com
■ Outline of Fees, etc.
Investors must bear the following expenses:
Fees charged at the time of acquisition and conversion
| Subscription Fees: |
A rate of no greater than 3.78% (3.5% before tax), as determined by the distributors. *In the case of the dividend reinvestment course, units acquired through dividend reinvestment will not be subject to subscription fees. |
| Redemption Fees: |
Not applicable. |
| Amount Retained in Trust Assets: Not applicable. |
Fees and expenses charged indirectly through the trust assets (i.e. paid by the Fund)
| Trust Fees: |
1.89% (1.75% before tax) of net asset value per annum. |
| Other Expenses: |
Expenses for creating and delivering prospectuses, accounting expenses (including outsourcing fees), and audit costs will be paid out of the fund's trust assets with an amount obtained by multiplying an annual rate of no greater than 0.1% on the fund's daily net asset value. Brokerage commissions on securities in the portfolio, interest on borrowings and advances, and fees related to securities lending will be paid out of the fund's trust assets each time they are incurred (in the case of securities lending, the amount obtained by multiplying the lending fee by 0.54* (0.5 before tax) on the lending fee).
*The rate or maximum amounts applicable to brokerage commissions on securities in the portfolio and other expenses cannot be disclosed in advance because the actual amount will vary depending on the state of the assets managed. |
| * The total amount of fees charged to the fund will vary depending on the length of investment period and other |
| * For more detail, please refer to the investment trust explanatory document (prospectus distributed in advance of subscription). |
■ Risk Information
Invested principal is not guaranteed and you may incur losses if the value of your investment principal falls below par as the result of a decline in the NAV. All gains and losses from the management of the fund belong to the investor (beneficiary). This fund also differs from bank deposits
Stocks are the main investment instrument of this fund. Thus, decreases in the prices of stocks, as well as declines in the financial standing of stock issuers or their earnings, can cause drops in the NAV that may cause losses. Losses may also be incurred due to exchange rate fluctuations when investing in assets denominated in foreign currencies. The principal risks of this Fund are as follows:
[Price Fluctuation Risk] [Liquidity Risk] [Credit Risk] [Exchange Rate Fluctuation Risk] [Country Risk] [Securities Lending Risk]
*Factors for NAV fluctuation are not limited to those explained above.
■ Other Matters to Consider
These materials were prepared by Nikko Asset Management for the purpose of promoting investors' understanding of "Global Fintech Equity Fund."
Before you invest in the fund, the distributor will deliver the investment trust explanatory document (prospectus distributed in advance of subscription). Please be sure to confirm its contents before making your own investment decision.
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