Single Sector Fund

Nikko AM ARK Disruptive Innovation Fund

About the fund

This fund provides access to a global share portfolio that offers thematic exposure to disruptive innovation across a number of sectors and geographies.

Disruptive innovation is caused by the introduction of new technologically enabled products or services that permanently change an industry or economic sector by providing greater simplicity, accuracy, customisation and accessibility while driving down costs.

Risk Indicator (volatility)

Target Asset Allocation

Equities 100.00%

Commentary

As of 31 December 2021

Market Highlights

  • During December, broad-based global equity indexes - as measured by the MSCI World, appreciated, even though the Omicron variant of the coronavirus and inflation fears damaged consumer confidence.
  • Relative to the MSCI World Index, the Consumer Staples, Utilities, and Real Estate sectors outperformed, while the Consumer Discretionary, Communication Services, and Technology sectors lagged.



 

The top contributors include Intellia Therapeutics (NTLA), Iridium Communications (IRDM), Signify Health (SGFY), Roku (ROKU), and Iovance Biotherapeutics (IOVA). Shares of Intellia Therapeutics (NTLA), a next-generation biopharmaceutical company developing in and ex vivo gene editing therapeutics, contributed to performance on relatively little news during the month. In 2021, Intellia published positive clinical and preclinical results and received an FDA orphan drug designation for one of its gene therapy candidates, positioning it well for 2022, in our opinion. IRDM contributed to performance on relatively little news. ARK believes the company will surprise to the upside as its broadband service, Iridium Certus, grows and moves upmarket in the internet-of-things space. It could see widespread adoption by autonomous solutions. Shares of Roku traded up after reaching a multiyear agreement with Google to keep YouTube and YouTube TV on its platform. Roku is a leading player in the TV operating space with over 56 million active accounts.

 The top detractors include Coinbase Global (COIN), Unity Software (U), Block (SQ), Tesla (TSLA), and Zoom Video Communications (ZM). In December, several crypto-related firm executives testified in front of Congress to help educate regulators on crypto’s potential. ARK believes regulation is crucial because it will open the doors for more investors. COIN traded down during the month, perhaps due to the broader crypto-market decline. After a relatively strong run, shares of Unity gave back during December. Shares were pressured as Director David Helgason sold 260k shares (~$42 million) early in the month. Investors also reacted negatively upon the announcement of Unity’s acquisition of segments of Weta Digital. ARK, in contrast, looks at the acquisition as amenable to Unity’s expansion into high-performance game development, offering a hyper-realistic game engine to strengthen its position against Epic Games’ Unreal Engine. Square changed its name to Block as the company continues to focus on developing blockchain technology solutions, including a new feature this month that allows Cash App users to gift bitcoin. The name likely also symbolizes the fact that Square, now Block, has evolved separate businesses united by the company’s new name. Shares of Block traded down during the month.

 (source: ARK Investment Management LLC)

Performance

Nikko AM Investment Scheme
Open Close

Performance

at 31 December 2021
One month Three months One year Three years (p.a) Five years (p.a)
Fund performance1 -9.97% -12.42% -20.96%
Appropriate Market Index (AMI)2 0.58% 11.82% 33.50%
  1. Returns are before tax and after the deduction of fees and expenses and including tax credits (if any).
  2. AMI: NASDAQ-100 Notional Net Total Return Index in NZD

5 year cumulative performance $10,000 invested

Top 10 Holdings

Security Name Percentage
Tesla Motors Inc 8.31%
Roku Inc 6.09%
Teladoc Health Inc 5.41%
Zoom Video Communications Inc 5.29%
Unity Software Inc 5.13%
Coinbase Global Inc 4.90%
Spotify Technology Sa 4.22%
Twilio Inc. Class A 3.78%
Intellia Therapeutics Inc 3.76%
Exact Sciences Corporation 3.61%

Our Managed Funds

Find out about all the Nikko AM funds you can invest in using GoalsGetter.

Learn more

Our KiwiSaver funds

For many of us, KiwiSaver will provide a significant portion of our retirement income. But it's only one part of the equation.

Learn more

Our fees

Find out about the types of fees that apply for our Nikko AM retail and KiwiSaver funds.

Learn more