Cathie Wood’s Ark Invest-supported Nikko AM Ark Positive Change Innovation Fund surged by 68% last year, leading to its dominance over several S&P and further becoming one of the world’s ESG funds.
Its secret weapon? A large bet on crypto, with Coinbase Global Inc. (COIN) as its largest position
In the meantime, clean-tech ESG champions like wind and solar performances lagged but tech focused investment in funds such as Nikko Ark raved. While, the fivefold surge of Coinbase last year, coupled with the SEC’s recent approval of Bitcoin ETF would increase the performance of this fund.
For Ark Invest portfolio manager Thomas Hartmann-Boyce, Coinbase has “a lot of room to run” being a leading custodial provider for the world’s largest cryptocurrency.
He underscores the fund’s attention to disruptive technologies that comply with UN sustainability targets and Bitcoin’s effectiveness in providing transaction transparency as well as cost effective financial inclusion benefits despite its energy usage.
In all, tech wealth ESG funds such as Nikko-Ark and JPMorgan US Technology Fund (JPMUSTC LX), performed better in 2023 than others and presented alternative ways for the organization to implement.