Nikko AM ARK Global Disruptive Innovation Fund
31 March 2024
Key Facts
| Index Used: | All Countries World Index (AUD) | Discretionary/Quantitative: | Discretionary |
| Peer Group: | Equity Long - Large Cap - Global | FUM (millions): | AU$ 62.5m |
| Investment Style: | Growth | Fund Inception Date: | August 2018 |
| Geographic Mandate: | Global | Latest Return Date: | March 2024 |
| Investor Type: | Wholesale & Retail | Status: | Open |
| Minimum Investment: | AU$ 10,000 | Investment Frequency: | Daily |
Manager Details
Nikko AM Australia is owned by Tokyo-based Nikko Asset Management Co., Ltd., one of Asia's largest asset managers, providing high-conviction, active fund management across a range of Equity, Fixed Income and Multi-Asset strategies. Established in 1959, Nikko Asset Management has offices across 11 countries and enjoys one of the largest distributor networks in the Asian region, serving both retail and institutional clients.
The firm's extensive footprint across the Asia-Pacific region includes local offices in Tokyo, Singapore, Hong Kong, Sydney, Melbourne and Auckland, and provides an extraordinary depth of expertise in the local issues that drive investment performance globally. In addition, they gain valuable insights from affiliates in China, India and Malaysia. Offices in New York and London provide support to investors in the US, Europe and the Middle East, as well as expertise in global markets.
Nikko Asset Management Australia offers investors the benefits of a large organisational infrastructure with extensive global resources, combined with the local expertise and experience of Australian investment managers based in Sydney.
Nikko AM Australia is owned by Tokyo-based Nikko Asset Management Co., Ltd., one of Asia's largest asset managers, providing high-conviction, active fund management across a range of Equity, Fixed Income and Multi-Asset strategies.
Strategy Description
ARK believes that innovation is key to growth. ARK seeks to capture long-term outperformance and capital appreciation created by disruptive innovation. ARK believes disruptive innovation is key to long-term growth of company revenues and profits. ARK aim to identify large-scale investment opportunities resulting from technological innovations such as robotics, big data, machine learning, blockchain technology, cloud computing, energy storage and DNA sequencing.
ARK believes that innovation is key to growth. ARK seeks to capture long-term outperformance and capital appreciation created by disruptive innovation. ARK believes disruptive innovation is key to long-term growth of company revenues and profits.
Fund Fees
| Management Fee: | 1.3% | Performance Fee: | 0% |
| Buy Spread: | 0.2% | Sell spread: | 0.2% |
| High Water Mark: | Hurdle: | N/A |
Fund Structure
| Offshore/Onshore: | Onshore | Fund Structure: | Unit Trust |
| Share Classes: | AU$ | Trustee/RE: | Nikko Asset Management Australia Limited |
| Administrator: | BNP Paribas Securities Services | Prime Broker: | N/A |
| Custodian: | BNP Paribas Securities Services | Legal: | Internal & External Legal Panel |
Ratings & Availability
Research Ratings
Platform Availability
Performance Review
The Nikko AM ARK Global Disruptive Innovation Fund has a track record of 5 years and 8 months and has underperformed the All Countries World (AUD) benchmark since inception in August 2018, providing investors with an annualised return of 2.05% compared with the benchmark's return of 11.93% over the same period.
The Manager has delivered these returns with 23.95% more volatility than the benchmark, contributing to a Sharpe ratio which has fallen below 1 five times over the past five years and which currently sits at 0.19 since inception. The fund has provided positive monthly returns 71% of the time in rising markets and 19% of the time during periods of market decline, contributing to an up-capture ratio since inception of 218% and a down-capture ratio of 169%.
The Nikko AM ARK Global Disruptive Innovation Fund returned -2.11% in March, a difference of -5.12% compared with the All Countries World (AUD) benchmark which rose by +3.01%. Over the past 12 months, the fund's best monthly return was +24.12% compared with the benchmark's best return of +5.32%, and its worst monthly return was -9.43% vs the benchmark's worst return over the same period of -3.27%.
| Year | Jan % | Feb % | Mar % | Apr % | May % | Jun % | Jul % | Aug % | Sep % | Oct % | Nov % | Dec % | YTD % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | -9.28 | 13.09 | -2.11 | NA | NA | NA | NA | NA | NA | NA | NA | NA | 0.43 |
| 2023 | 22.82 | 3.59 | 2.87 | -9.04 | 14.52 | 6.54 | 12.58 | -9.43 | -9.42 | -9.36 | 24.12 | 9.81 | 65.73 |
| 2022 | -17.91 | -9.17 | -8.21 | -22.65 | -7.58 | -5.90 | 9.16 | -5.18 | -4.13 | 2.47 | -5.78 | -17.11 | -63.44 |
| 2021 | 10.76 | -6.51 | -6.30 | -1.05 | -7.10 | 19.19 | -6.65 | 3.22 | -7.43 | 5.17 | -8.40 | -12.29 | -19.88 |
| 2020 | 8.53 | 4.86 | -12.08 | 15.62 | 12.59 | 8.12 | 8.19 | 13.87 | -0.37 | 1.16 | 17.39 | 7.22 | 120.08 |
| 2019 | 11.09 | 10.24 | 0.65 | 2.12 | -12.26 | 15.77 | 2.85 | -6.19 | -3.37 | 0.24 | 15.33 | -4.07 | 32.20 |
| 2018 | NA | NA | NA | NA | NA | NA | NA | 0.54 | -5.41 | -8.70 | 0.79 | -9.62 | -20.90 |
Annual Returns
Over the past 12 months, the fund has risen by +27.17% compared with the benchmark which has returned +26.01%, for a difference of +1.16%. Since inception in August 2018, the fund has returned +2.05% per annum, a difference of -9.88% relative to the benchmark which has returned +11.93% on an annualised basis over the same period.
Cumulative Returns
On a cumulative basis (assuming reinvestment of distributions), $100 invested since inception would have become $112. The same amount invested in the benchmark over the same period would have become $189.
Annual Returns %
Volatility and Risk
Annual Standard Deviation
The fund's returns over the past 12 months have been achieved with a volatility of 40.17% vs the index's 9.57%. The annualised volatility of the fund's returns since inception in August 2018 is 35.61% vs the index's 11.66%. Over all other periods, the fund's returns have been more volatile than the benchmark.
Sharpe Ratio
The fund's Sharpe ratio has ranged from a high of 0.7 for performance over the most recent 12 months to a low of -0.45 over the latest 36 months, and is 0.19 for performance since inception. By contrast, the All Countries World (AUD) Index's Sharpe for performance since August 2018 is 0.91.
Annual Standard Deviation
Sharpe Ratio
Performance in Positive Markets
Since inception in August 2018 in the months where the market was positive, the fund has provided positive returns 71% of the time, contributing to an up-capture ratio for returns since inception of 217.95%. Over all other periods, the fund's up-capture ratio has ranged from a high of 207.89% over the most recent 60 months to a low of 105.12% over the latest 36 months. An up-capture ratio greater than 100% indicates that, on average, the fund has outperformed in the market's positive months.
Performance in Negative Markets
Since inception in August 2018 in the months where the market was negative, the fund has provided positive returns 19% of the time, contributing to a down-capture ratio for returns since inception of 169.17%. Over all other periods, the fund's down-capture ratio has ranged from a high of 412.36% over the most recent 12 months to a low of 182.45% over the latest 60 months.
Average Return in +ve Market %
Average Return in -ve Market %
Sortino Ratio
The fund's Sortino ratio (which excludes volatility in positive months) has ranged from a high of 0.93 for performance over the most recent 12 months to a low of -0.89 over the latest 36 months, and is 0.02 for performance since inception. By contrast, the All Countries World (AUD) Index's Sortino for performance since August 2018 is 1.35.
Drawdown
Over the past 12 months, the fund's largest drawdown was -25.64% vs the index's -6.22%, and since inception in August 2018 the fund's largest drawdown was -73.55% vs the index's maximum drawdown over the same period of -16.02%.
Sortino Ratio
Drawdown%
Quintile Ranking vs. Average Equity Long - Large Cap - Global as of March 2024
The performance of the Nikko AM ARK Global Disruptive Innovation Fund ranked it in the second quintile for Total Return over 1 year.
Over the past 12 months, the fund has risen by +27.17% compared with the peer group which has returned an average of +22.12%, for a difference of +5.05%.
The fund's returns over the past 12 months have been achieved with a volatility of 40.17% vs the peer group's average volatility of 9.55%. The annualised volatility of the fund's returns since inception in August 2018 is 35.61% vs the peer group's 11.57%. Over all other periods, the fund's returns have been more volatile than the peer group.