Fund Manager Q&A

When it comes to investing in disruption a lot of the capital and focus has been on finding opportunities that exist in private markets. Cathie Wood, Chief Investment Officer of ARK Invest, says this focus on private companies and the move towards passive investing created a void in public markets. 

In 2014, Wood established ARK and using research methods not available to traditional asset managers set out to identify and invest in innovative and disruptive listed companies. ARK has identified five disruptive themes that form the focus of their investing activity. 

“The capital committed to innovation in the public markets has been disappearing because of the move to passive. Many of the breakthrough companies are not in benchmarks at all. So, they’re not receiving the fund flows that they normally would.”

In this exclusive interview Cathie Wood explains why there isn’t a bubble in disruptive stocks, how banks and the oil industry are becoming value traps and the future of money.

Ark’s five platforms of disruptive innovation are:

  1. DNA sequencing
  2. Energy storage
  3. Robotics
  4. Artificial intelligence
  5. Blockchain

Talking points

  • The uncomfortable rally and why there isn’t a bubble in innovative stocks
  • The five platforms of innovation
  • Why banks and the oil industry are examples of value traps being created from disruption
  • What are the risks of there being so much data available to technology companies?
  • The future of money and the role of digital currencies such as Libra
  • Why Bitcoin is gaining ‘reserve’ status among crypto currencies 

Not everyone sees the next big thing coming

The Nikko AM ARK Global Disruptive Innovation Fund offers access to a global equity portfolio that provides thematic exposure to disruptive innovation. The Fund seeks to capture long-term capital growth by capitalising on changing trends caused by technology-enabled innovations like genomics, robotics and next generation internet. For more information hit the contact button below.


Nikko Asset Management Australia is pleased to bring the ARK Investment Management strategies and capabilities to Australia. ARK Investment Management is a Nikko Asset Management strategic partner. This material is issued in Australia by Nikko AM Limited ABN 99 003 376 252, AFSL 237563.

The content is available for informational purposes only and is subject to change without notice. All statements made regarding companies or securities or other financial information are strictly beliefs and points of view held by ARK or the third party making such statement and are not endorsements by ARK of any company or security or recommendations by ARK to buy, sell or hold any security.

Certain of the statements contained in this presentation may be statements of future expectations and other forward-looking statements that are based on ARK's current views and assumptions, and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements.



Comments

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Rio T

Great interview. Really enjoyed the piece about crypto. I am no crypto bull, but certainly with all the debt amassed by governments around the world to prop up the broken economy, it's probably improbable BUT NOT impossible that eventually all these debt will be monetized and left for the citizen to pay (by way of diminising the currency purchasing power to pay off the debt - inflate away). It is certainly not the central case and perhaps in Australia, we are quite lucky that our government does not have the same debt problems as our counterpats in the US/EU.

Robert Brechin

Utterly fascinating - Cathie Wood is such an insightful, articulate and intelligent leader. One of the best Livewire sessions ever. No offence to the interviewer, but it was all Cathie!

Robert Eckton

Great interview - really interesting perspectives- good job LiveWire for facilitating these I/V opps!

mahala

This was an extremely valuable and thorough analysis of disruptive technologies that are going to be fostered on us sooner or later. really enjoyed this informative interview. Thanks a lot to Live wire for bringing this to us.

Andrew Witt

Fascinating interview. My attention span doesn't normally go past five minutes but I was glued to that.

Gareth Chang

Great interview - fascinating insights!

Alison Dalziell

All very well to talk themes but what about performance? This fund (Nikko AM ARK Global Disruptive Innovation Fund) has returned a negative -2.4% vs the Index (MSCI All countries World index in AUD unhedged) of positive +7.5% since inception that is nearly 10%pa UNDERPERFORMANCE. Not to mention they can change the management fee from 1.35% currently to 3.3% with only 30 days notice.