BMO Investments Inc. announced Thursday it is launching a series of new funds managed by ARK Investment Management LLC that will focus on disruptive innovation.
There will be three new BMO ARK Funds, each with an emphasis on secular trends and disruptive innovation, according to a press release.
The BMO ARK Genomic Revolution Fund, the BMO ARK Innovation Fund and the BMO ARK Next Generation Internet Fund will all begin trading on the Toronto Stock Exchange this Thursday.
“The traditional world order is going to be disrupted and disruptive innovations are going to account for the majority of the market,” Catherine Wood, chief executive officer and chief investment officer of ARK Investment Management, said in a television interview on Thursday.
“We believe that in the global equity market, truly disruptive innovation is priced at roughly $7 trillion dollars. We believe that number is going to $210 trillion in 2030. So it's going from less than 10 per cent of the market to more than 50 per cent of the market,” Wood said.
Wood said investors will need to diversify their investment portfolios to hedge against looming disruption.
Amid the launch of the new funds that focus on innovation, Wood said she sees potential in Canadian e-commerce company Shopify Inc.
“In Canada, Shopify exemplifies a real innovator and we own that stock in both ARKK [ARK Innovation ETF] and ARKW [ARK Next Generation Internet ETF] because it introduced us to this concept of social commerce,” said Wood adding that ARKK has a three to four per cent position in Shopify.
“We think it's going to be a spectacular stock going forward.”
In 2014, Wood founded ARK Investment Management, which currently has around US$25.1 billion in assets under management, according to the release.
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