Nikko Asset Management has bought a 15% minority stake in ARK Investment Management, a New York-based boutique provider of thematic ETFs targeting disruptive technologies. As part of the deal, Nikko AM will obtain exclusivity to offer ARK products and investment strategies in Japan and Asia Pacific.

Catherine D. Wood, CEO, Ark Investment Management

Catherine D. Wood, CEO and CIO of ARK, commented: “We are honoured and delighted that Nikko AM has cemented our partnership with an ownership interest in ARK. 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 investor 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.”

ARK currently offers six ETFs, including four active ETFs, investing in themes such as industrial innovation, genomic sequencing, 3D printing and next generation internet. The largest is the ARK Innovation ETF (NYSE Arca: ARKK), which was launched in October 2014 and has $95 million in assets with an expense ratio of 0.75%. Current largest holdings include Bitcoin Investment Trust (6.4%), Tesla (6.1%) and Athenahealth (5.4%).

Takumi Shibata, Nikko AM President and CEO, said: “We are extremely excited to welcome ARK to the Nikko AM family. The established expertise of our in-house investment team combined with ARK’s strategies focused on disruptive technology and innovation enable progressive solutions for our clients.”