Cathie Wood steps down as portfolio manager on two ETFs at Ark
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Ark Investment Management chief executive Cathie Wood has stepped down as portfolio manager of the firm’s two index funds, in the third overhaul of the firm’s portfolio management roster in as many months.
Will Scherer, until now chief commercial officer of the company, has been named portfolio manager of Israel’s $192 million 3D printing and $110 million exchange-traded funds for innovative technologies, revealed the society. Wood remains Ark’s chief investment officer, as well as the portfolio manager of the actively managed funds.
In June, Sam Korus and Nicholas Grous were appointed associate portfolio managers. Until then, Wood was the company’s only PM. This month, Korus was reassigned as director of research and former client portfolio specialist Dan White was elevated to associate portfolio manager.
Ark has drawn criticism for potential key person risk due to Wood’s centrality to the company’s fund management operations.
This article was previously published by Ignites, a title owned by the FT Group.
Early last year, as Ark’s funds enjoyed rapid growth and robust returns, Morningstar warned that Wood had become “critical to the continued success of the business” and that the company lacked experienced talent. in portfolio management beyond it.
Since then, Ark’s returns have deteriorated and fund flows have slowed.
In total, Ark ETFs saw net outflows of $5.2 billion in the year ended August 31, according to Morningstar Direct. During this period, investors pulled in $136 million from 3D printing and $87 million from Israel Innovation Technology.
It’s unclear whether the latest appointments will allay analyst concerns about Ark’s inexperience in portfolio management. Scherer has worked for Ark since 2014, according to his company bio, and worked directly with Wood. Before joining Ark, he was an intern at TIAA.
*Ignites is an information service published by FT Specialist for professionals working in the asset management industry. It covers everything from new product launches to regulations and industry trends. Trials and subscriptions are available at enflamme.com.
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