global impact growth disruptive innovation strategy

Global Impact Growth Disruptive Innovation Strategy

Emerge Capital Management Inc. is an authorized distributor for ARK Investment Management LLC.Materials Code: ARKD046

Information as of December 31, 2018

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Overview

Section 1

Section 2

Section 3

Section 4

About ARK

Investment Opportunity

Investment Process

ARK’s Global Impact Growth Disruptive Innovation Strategy

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ARK BELIEVES INNOVATION IS KEY TO GROWTH.

We seek to capture long-term exponential growth and capital appreciation created by disruptive innovation.

ABOUT ARK

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ARK Invest focuses solely on offering investment solutions to capture disruptive innovation in the public markets.

“ETF Provider of the Year” 2017 awarded by Fund Intelligence1

“Most Innovative Issuer of the Year” 2-17 awarded by ETF.com2

*As of Dec. 31, 2018 | [1] [2] For detailed award information see disclosure.

ARK Investment Management LLC

AUM:$5.8 Billion*

Investment Solutions: Exchange Traded Funds (US)

Mutual Funds (US, Japan)

Separately Managed Accounts (Institutional, Retail)

Owners:Majority: Catherine D. Wood

Resolute Investment Managers, Inc. (Irving, TX)

Nikko Asset Management (Nikko AM)(Tokyo, Japan)

All Employees own shares

Founded: January 2014

Location: New York, NY USA

Number of Employees: 22

ABOUT ARK

• Organizes analyst teams by cross-sector innovation themes to capitalize on the technologicalconvergence with research and industry insights.

• Utilizes a proprietary Open Research Ecosystem that combines top-down and bottom-upresearch, designed to identify innovation and convergence across markets.

• Offers actively managed innovation strategies that span market capitalization and sectorswith low overlap to broad-market indices.

Catherine D. WoodFounder, CEO/CIO

Selected to “The Bloomberg 50”, 2018 Selected to “Fortune’s Investor Roundtable”, 2018 Speaker at the World Economic Forum (China) Awarded Women In Finance, 2016

5[1] Awarded By Markets Media. For detailed award information see disclosure.

ABOUT ARK

Research and Investment TeamARK’s analysts are organized by cross-sector disruptive innovation themes:

James Wang (University of New South Wales)

Mobile Devices, Social Media, Machine Learning, Virtual Reality, Semiconductors

Bhavana Yarasuri (Stanford University)

Payments, Exchanges, Lending, Fintech, Mobile Payments

Tasha Keeney, CFA (Boston University)

Autonomous Vehicles, 3D Printing, Mobility-as-a-Service, Infrastructure Development

Sam Korus (University of Pennsylvania)

Robotics, Energy Storage, Electric Vehicles, Alternative Energy, Space Exploration

Manisha Samy (Stanford University)

Beyond DNA, Targeted Therapeutics, Agricultural Biology, Instrumentation, Stem Cells

Simon Barnett (Johns Hopkins University)

Molecular Diagnostics, Next Generation DNA Sequencing, Nano-Biotechnology

Max Friedrich (University of Heidelberg, Germany)

Fintech, Mobile Payments, Digital Wallets, Venture Capital

Yassine Elmandjra (University of Pennsylvania)

Blockchain, Cryptocurrencies, Cryptoassets

Catherine D. WoodFounder, CEO/CIO

Teamed with Catherine Wood for over 10 years in researching innovation at AllianceBernstein

iamb Consulting, Principal and Founder

AllianceBernstein, Strategic Research Analyst

RFID Industry, Business Development

Massachusetts Institute of Technology

Brett WintonDirector of Research

AllianceBernstein, CIO Global Thematic Strategies

Tupelo Capital Management, Co-Founder, Portfolio Manager (PM), Largest Woman-Run Hedge Fund, 2000

Jennison Associates, Chief Economist, PM, and Director

Capital Group, Assistant Economist

University of Southern California

Renato Leggi, CFA, CAIAClient Portfolio Manager

Capital One, Wealth & Asset Management, Director of Investment Research and Due Diligence

Morgan Stanley Private Bank, Client Portfolio Manager

Legg Mason, Analyst

Loyola University Maryland

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ARK aims to identify large-scale investment opportunities by focusing on public companies that are the leaders, enablers, and beneficiaries of disruptive innovation.

Five Major Innovation Platforms that enable long-term investment opportunities

INVESTMENT OPPORTUNITY

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ARK focuses solely on disruptive innovation to take advantage of four market inefficiencies

1. “The Market’s Short-Term Time Horizon“

2. “The Passive Public Markets“

3. “The Silo-ization of Wall Street“

4. “The Closed-off Research and Investment Mentality”


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1. “The Market’s Short-Term Time Horizon“

The market easily can be distracted by short-term price movements, losing focus on the long-term effect of disruptive technologies. We believe there is a time arbitrage ARK can take advantage of. We seek opportunities that offer growth over 3-5 years that the market ignores or underestimates.

Saddle Adoption Curve of Innovation

Source: ARK Investment Management LLC


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2. “The Passive Public Markets“

Aiming to Capture Growth in the Public Markets

ARK identifies inefficiencies in innovative stocks in the public markets, investing in companies best positioned for growth.

Diminishing Opportunities in the Pre- IPO Space

ARK believes traditional asset managers have crowded into the private space, limiting opportunities.

Missing the “Next Big Thing”in Benchmarks

ARK observes that investors have moved towards passive benchmarks, rewarding past successes, as indices tend to be market-cap weighted.

PRIVATE BENCHMARKPUBLIC

IPO–Filter

Innovation investors have crowded into the private markets, while at the same time the public markets have increasingly gone passive. Thus ARK believes innovative public companies with forward looking growth are the most inefficiently priced part of the market.


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SECTORS

28.2%28.1%25.8%11.1%

4.2%

2.7%

Health CareInformation Technology Communication Services Consumer Discretionary Not ClassifiedFinancials

MARKET CAPITALIZATION

21.3%

30.4%

17.8%

7.3%

Mega (77.83 B+)

Large (17.7-77.82 B)

Medium (3.71-17.76 B)

Small (1.24B-3.70B)

Micro (<1.23B) 23.2%

INNOVATION PLATFORMS vs STYLE BOXESExample: ARK Disruptive Innovation Strategy — actively managed concentrated portfolio

VS.

Source: ARK Investment Management LLC; All data as of December 31, 2018

PORTFOLIO COMPOSITION10.3%5.9%9.1%9.5%3.8%11.1%0.9%7.6%3.2%7.2%7.4%4.9%1.8%3.8%3.3%2.1%3.1%

Gene Therapy3D PrintingAutonomous VehiclesBig Data & Machine Learning InstrumentationE-CommerceMolecular DiagnosticsRoboticsInternet of ThingsBioinformaticsDigital MediaSocial PlatformsBeyond DNACloud ComputingTargeted TherapeuticsBlockchain & P2PMobileEnergy Storage 2.0%


3. “The Silo-ization of Wall Street”

Innovation cannot be boxed into sectors, geographies, or market caps. Index strategies tend to miss forward looking growth opportunities, while analysts covering disruptive companies have trouble understanding technology cost curves. ARK’s analysts are organized by cross-sector disruptive innovation themes to capitalize on the convergence of research.

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4. “The Closed-off Research and Investment Mentality”

Disruptive innovation demands an open-source approach to gain a deeper understanding of the convergence and full market potential. ARK uses an Open Research Ecosystem that combines top-down and bottom-up research. It is designed to identify disruptive innovation early, allowing for an organized exchange of insights between the portfolio manager, director of research, analysts, and external sources.

Data Sources

Analyst Teams

Portfolio Management

Theme Developers

A

PM TD

ARKLAB

TRADITIONALSOURCES

ONLINE +SOCIAL MEDIA

CROWDSOURCING

OPEN RESEARCH ECOSYSTEM


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How to Use ARK’s Strategies

1. Portfolio diversification — thematic investing in disruptive innovation can offer a low correlation of relative returnsto traditional growth strategies and negative correlation to value strategies.

2. Source of alpha — a top-down approach looks at secular trends and ecosystems to find attractive growthopportunities across sectors.

3. Hedge for index-based strategies — a constant focus on secular changes and disruptive innovation can offer aportfolio hedge in a rapidly changing world and complement traditional strategies.

GROWTH STRATEGY SATELLITE STRATEGY HEDGE

Growth Portfolio

Core Portfolio

EquityPortfolio

The information herein is general in nature and should not be considered financial advice. An investor should consult a financial professional regarding the investor’s specific situation.


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Iterative investment process, combining top-down and bottom-up research

GOAL PROCESS APPROACH

BOTTOM UP

BOTTOM UP

TOP DOWN

TOP DOWN

STOCK SELECTION AND VALUATION

PORTFOLIO AND RISK MANAGEMENT

SIZING THE OPPORTUNITY

IDEATIONARK Open Research Ecosystem

Learning Curves/Cost Declines

Elasticity of Demand

Unit Economics

Total Addressable Market

Investment Briefs

Valuation Models

Company Scores

Portfolio Tracker

Investment Committee Meetings

Active Management

Identify Disruptive Innovations

Identify The Potential Universe

Identify, Score, and Select Best Positioned Companies

Adjust For Changes In Conviction;Take Advantage of Market Volatility


14Forecasts are inherently limited and cannot be relied upon.Source: ARK Investment Management LLC, 2017

Example: Industrial RobotsTOP-DOWN RESEARCH


As a result of extensive and iterative research steps, ARK anticipates and quantifies multi-year value-chain transformations and market opportunities.

ARK models cost curves and calculates elasticity of demand to identify entry points for tech-enabled disruption.

1995 1996

2005 2010

2014

$10

$100

$1,000

100,000 10,000,000

Uni

t Cos

t (in

Tho

usan

ds)

1,000,000

Cumulative Industrial Robots Produced

Industrial Robot Cost Decline (2015, USD) ARK Cost Decline Historic Prices BCG Cost Decline

1997

1999 2001

2003

2005 2007 2010

2009

2011

2013

2015

0

50

100

150

200

250

300

20000 40000 60000 80000 100000 120000 140000

Qua

ntity

(Ann

ual R

obot

Sal

es)

( in

Thou

sand

s)

Price (Unit Cost of an Industrial Robot)

Industrial Robot Price Elasticity of Demand

1996-2002 2002-2010 2009 2010-2015

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Ann

ual U

nit S

ales

Annual Industrial Robot Sales Forecast

BCG Low BCG High ARK Model Midpoint 17% CAGR

11% CAGR

7% CAGR

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ARK aims to model appropriate growth rates and valuating innovative companies.

Valuation models are informed by top down and bottom up input.

Forecasts are inherently limited and cannot be relied upon. Any references to particular securities are for illustrative purposes only. This is not a recommendation in relation to any named securities and no warranty or guarantee is provided.Source: ARK Investment Management LLC, As of Aug 22, 2018

Example: TSLA (Snapshot)BOTTOM-UP RESEARCH


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ARK uses a proprietary scoring system to value companies and monitor the underlying investment thesis.

Analysts update company scores during weekly stock meetings.

Within each portfolio ARK tracks a stock’s “Thematic Relevance” to evaluate its position

PORTFOLIO MANAGEMENT

1. Company, People, and Culture

2. Execution

3. Moat: Barriers to Entry

4. Product and Service Leadership

5. Valuation

6. Thesis Risk

Any references to particular securities are for illustrative purposes only. This is not a recommendation in relation to any named securities and no warranty or guarantee is provided.Source: ARK Investment Management LLC, As of January 10, 2019

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ARK Invest continuously monitors its portfolio companies.

As scores change,

ARK's investment team adjusts stockpositions in the portfolio.

SELL DISCIPLINE/ RISK MANAGEMENTAnalysts adjust scores according to quantitative and qualitative inputs from various sources. Any score downgraded to 6 or lower triggers full stock review

Company, People, and Culture

• Departure of key personnel• Inefficient talent acquisition• Threat of legal action

Execution

• Insufficient/ declining R&D spending• Incorrect target operating model• Poor sales and marketing execution

Moat/ Barriers to Entry

• Rise of new disruptive technologies• Increasing competitive pressure• Trade barriers and subsidizes

Product Leadership

• Loss of market share• Lack of vision for future innovation• Monitoring incorrect KPIs

Valuation

• The average rate of return for a stockdrops below 15% average over five years

Thesis Risk

• Regulatory risk• Geopolitical risk• Technology adoption risk


Source: ARK Investment Management LLC; All data as of December 31, 2018

28.2%

28.1%

25.8%

11.1%

Health Care

Information Technology

Communication Services

Consumer Discretionary

Not Classified

Financials4.2%

2.7%18

PORTFOLIO COMPOSITION10.3% 9.1%11.1%

9.5%7.6%5.9%7.4%3.2%7.2%4.9%3.8%3.8%3.3%2.0%3.1%2.1%1.8%0.6%0.5%1.6%

Gene TherapyAutonomous VehiclesE-CommerceBig Data & Machine Learning Robotics3D PrintingDigital MediaInternet of Things BioinformaticsSocial PlatformsCloud Computing InstrumentationTargeted TherapeuticsEnergy StorageMobileBlockchain & P2PBeyond DNADevelopment of Infrastructure Stem CellsNext Generation Oncology Molecular Diagnostics

SECTORS0.9%

MARKET CAPITALIZATION

Mega Cap ($77.83B +) 21.3%

Large Cap ($17.77 to $77.82B) 30.4%

Medium Cap ($3.71 B- $17.76B) 17.8%

Small Cap ($1.24B- $3.70B) 7.3%

Micro Cap (less than $1.23 B) 23.2%

TOP 10 HOLDINGS Weight

6.2%6.2%6.1%6.0%5.2%5.1%5.0%4.9%4.9%

TESLA INCSQUARE INC -A BAIDU INC - SPON ADRSTRATASYS LTDNVIDIA CORPTENCENT HOLDINGS LTD INTELLIA THERAPEUTICS INC TWITTER INCTERADYNE INCILLUMINA INC 4.7%

54.3%Holdings are subject to change and should not be considered as investment advice, or a recommendation to buy, sell or hold any particular security.

The Global Impact Growth Disruptive Innovation Strategy is built on the investments that present the best risk-reward opportunities from ARK’s innovation-based themes.

“THE CORNERSTONE THEMES OF DISRUPTIVE INNOVATION”

GLOBAL IMPACT GROWTH DISRUPTIVE INNOVATION STRATEGY

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[1] Source: Jr., Jerry Sais, and Melissa W. Sais. "Active Share Measures Active Management." Investopedia, 19 Mar. 2018,https://www.investopedia.com/articles/mutualfund/07/active-share.asp

All data as of December 31, 2018. Portfolio holdings will change and should not be considered purchase recommendations.

Low Correlation of Relative Returns to Traditional Growth Strategies

Negative Correlation of Relative Returns to Traditional Value Strategies

6% S&P 500 Index stocks represented in ARK’s Disruptive Innovation Theme

26% Russell 3000 Index stocks represented in ARK’s Disruptive Innovation Theme

10% MSCI World Index stocks represented in ARK’s Disruptive Innovation Theme

Overlap of ARK’s Disruptive Innovation Separate Account

ARK ACTIVE SHARE S&P 500 INDEX MSCI WORLD INDEX

ARK Disruptive Innovation 95% 95%

Active Share is a measure of the percentage of stock holdings in a manager's portfolio that differ from the benchmark index. Managers with high Active Share may outperform their benchmark indexes.1

ARK’s APPROACH LEADS TO HIGH ACTIVE SHARE


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PORTFOLIO CONSTRUCTION

• Cross-Sector, Cross-Market Cap

• Average number of stocks: 30-40

• Average percentage of US/International stocks: 75%/25%*

• Average equity position: 2.5%- 3.0% per issuer

• Average market capitalization: $72.4 billion+

ARK Disruptive Innovation Portfolio

Weighted Average Market Cap

75% of Portfolio Equity Positions

All data as of 12/31/2018. Portfolio holdings will change and should not be considered purchase recommendations.

* Approximation, dependent on industry/market.+ Weighted Average Market Capitalization is the average of the market capitalizations of the companies in the portfolio weighted by the size ofeach company’s position within the portfolio. Market Capitalization is the aggregate value of all of a company’s outstanding equity securities.


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PERFORMANCE

Net Returns as of December 31, 2018Separate Account Strategy: GLOBAL IMPACT DISRUPTIVE INNOVATIONPortfolio Manager: Catherine D. Wood, CEO/CIO ARK Investment Management LLC

The Global Impact Disruptive Innovation Strategy managed by ARK Investment Management LLC is a separate account strategy invested in stocks, which are publicly traded securities subject to a changing market value. This strategy and its separate account composite began on March 1, 2016. The performance shown here is net of fees. ARK is a registered investment adviser with the U.S. Securities & Exchange Commission. For more information on this strategy, please contact EMERGE at [email protected] or 1-877-8EMERGE/877-836-3743. Please see additional disclosures on the last page of this document. Past performance does not guarantee future results.

Source: Morningstar Direct

Net Returns as of December 31, 2018Source Data: Monthly Return

Q4 2018 2018 2 Years Since Incept. of 3/1/2016-30.0%

-22.5%

-15.0%

-7.5%

0.0%

7.5%

15.0%

22.5%

30.0%

37.5%

45.0%

52.5%

60.0%

67.5%

75.0%

82.5%

90.0%

97.5%

-24.2

-4.5

74.4

94.7

-17.3

-1.4

32.6

59.4

-16.3

-2.1

26.8

45.0

-17.3-13.0

7.9

31.9

-8.7

6.4

29.8

37.3

-13.5

-4.4

16.5

37.4

-13.3-8.2

13.0

30.8

S&P Technology Select Sector TR USD

S&P Health Care Select Sector TR USD

Russell 3000 Growth TR USD

S&P 500 TR USD

ARK Disruptive Innovation Strategy SMA

S&P Industrial Select Sector TR USD

MSCI World GR USD

Return

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PERFORMANCE

Investment Growth-Net Returns of $100,000 Since InceptionSeparate Account Strategy: GLOBAL IMPACT DISRUPTIVE INNOVATIONPortfolio Manager: Catherine D. Wood, CEO/CIO ARK Investment Management LLC

The Global Impact Disruptive Innovation Strategy managed by ARK Investment Management LLC is a separate account strategy invested in stocks, which are publicly traded securities subject to a changing market value. This strategy and its separate account composite began on March 1, 2016. The performance shown here is net of fees. ARK is a registered investment adviser with the U.S. Securities & Exchange Commission. For more information on this strategy, please contact EMERGE at [email protected] or 1-877-8EMERGE/877-836-3743. Please see additional disclosures on the last page of this document. Past performance does not guarantee future results.

Source: Morningstar Direct

Investment Growth-Net Returns of $100,000 Since Incepton

Time Period: 3/1/2016 to 12/31/2018

6/2016 9/2016 2/2016 3/2017 6/2017 9/2017 2/2017 3/2018 6/2018 9/2018 2/2018$100,000

$110,000

$120,000

$130,000

$140,000

$150,000

$160,000

$170,000

$180,000

$190,000

$200,000

$210,000

$220,000

$230,000

$240,000

$250,000

$260,000

$270,000

194,695 Russell 3000 Growth TR USD 145,004 S&P 500 TR USD 137,418ARK Disruptive Innovation Strategy SMA

MSCI World GR USD 130,819

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ARK Invest, 3 East 28th Street, Floor 7, New York, NY 10016 www.ark-invest.com

©2018, ARK Investment Management LLC. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of ARK Investment Management LLC (“ARK”.

The information provided is for informational purposes only and is subject to change without notice. This presentation does not constitute, either explicitly or implicitly, any provision of services or products by ARK, and investors should determine for themselves whether a particular investment management service is suitable for their investment needs. All statements made regarding companies or securities are strictly beliefs and points of view held by ARK, and are not endorsements by ARK of any company or security or recommendations by ARK to buy, sell or hold any security. Historical results are not indications of future results.

Certain of the statements contained in this presentation may be statements of future expectations and other forward-looking statements that are based on ARK's current views and assumptions, and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. The matters discussed in this presentation may also involve risks and uncertainties described from time to time in ARK's filings with the U.S. Securities and Exchange Commission. ARK assumes no obligation to update any forward-looking information contained in this presentation. ARK and its clients as well as its related persons may (but do not necessarily have financial interests in securities or issuers that are discussed. Certain information was obtained from sources that ARK believes to be reliable; however, ARK does not guarantee the accuracy or completeness of any information obtained from any third party.

For questions and support, please contact Emerge at

1-877-8EMERGE or [email protected]

http://www.ark-invest.com/

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DISCLOSURES

The Global Impact Disruptive Innovation Strategy managed by ARK Investment Management LLC (“ARK”) is a separate account strategy invested in stocks, which are publicly traded securities subject to a changing market value. This strategy and its separate account composite began on March 1, 2016. The performance shown is based on an initial investment of $100,000 and is for example and illustrative purposes only. Theperformance is daily and net-of-fees, and reflects the reinvestment of dividends and other earnings. ARK updates the performance of this strategy monthly in both Morningstar and Evestment databases. ARK is a registered investment adviser with the U.S. Securities & Exchange Commission (“SEC’). No part of this material may be reproduced in any form, or referred to in any publication, without the express written permission of ARK or Emerge Capital Management (“Emerge”). The information provided is for general informational purposes only and is subject to change without notice. This presentation does not constitute, either explicitly or implicitly, any provision of services or products by ARK, and is not a recommendation to buy, sell or hold any security. Certain information was obtained from sources that ARK believes to be reliable; however, ARK does not guarantee the accuracy or completeness of any information obtained from any third party.

An investment in an ARK separate account is subject to risks and you can lose money on your investment. There can be no assurance that the separate account will achieve its investment objective. The ARK separate account portfolio is more volatile than broad market averages. Investors should carefully consider the investment objectives and risks as well as charges and expenses of a separate account before investing, and consult a financial professional, an attorney or tax professional regarding the investor’s specific situation.

For more information on this strategy, please contact EMERGE at [email protected] or 1-877-8EMERGE/877-836-3743. For a list of all purchases and sales made by ARK for client accounts during the past year that could be considered by the SEC as recommendations please go to http://ark-invest.com/wpcontent/ trades/ARK_Trades.pdf.

DISCLOSURES

Index Descriptions: The S&P 500® Index is a widely recognized capitalization-weighted index that measures the performance of the large-capitalization sector of the U.S. stock market. Source: MorningstarThe MSCI World Index represents large and mid-cap equity performance across 23 developed markets countries. You cannot invest directly in an index and securities in an ETF will not match those in an index. Source: MorningstarThe Russell 3000 Index measures the performance of 3000 large U.S. companies, as determined by market capitalization. This portfolio of Securities represents approximately 98% of the investable U.S. equity market.. Securities in the ARK ETFs' portfolios will not match those in any index. You cannot invest directly in an index.Source: MorningstarThe S&P U.S. Technology Select Sector TR Indices follow a modified market capitalization weight methodology. All components of the S&P 500® are assigned to at least one of 10 Select Sector Indices, which seek to track major economic segments and are highly liquid benchmarks. Stock classifications are based on the Global Industry Classification Standard (GICS®). Source: MorningstarThe S&P U.S. Health Care Select Sector TR Indices follow a modified market capitalization weight methodology. All components of the S&P 500® are assigned to at least one of 10 Select Sector Indices, which seek to track major economic segments and are highly liquid benchmarks. Stock classifications are based on the Global Industry Classification Standard (GICS®).Source: MorningstarThe S&P U.S. Industrial Select Sector TR Indices follow a modified market capitalization weight methodology. All components of the S&P 500® are assigned to at least one of 10 Select Sector Indices, which seek to track major economic segments and are highly liquid benchmarks. Stock classifications are based on the Global Industry Classification Standard (GICS®).Source: Morningstar

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DISCLOSURES

Please note, companies that ARK believes are capitalizing on disruptive innovation and developing technologies to displace older technologies or create new markets may not in fact do so and/or may face political or legal attacks from competitors, industry groups, or local and national governments. ARK aims to educate investors and to size the potential opportunity of Disruptive Innovation, noting that risks and uncertainties may impact our projections and research models. Investors should use the content presented for informational purposes only, and be aware of market risk, disruptive innovation risk, and regulatory risk, such as:

Industrials Sector Risk. The industrials sector includes companies engaged in the aerospace and defense industry, electrical engineering, machinery, and professional services. Companies in the industrials sector may be adversely affected by changes in government regulation, world events and economic conditions. In addition, companies in the industrials sector may be adversely affected by environmental damages, product liability claims and exchange rates. Aerospace and Defense Company Risk. Companies in the aerospace and defense industry rely to a large extent on U.S. (and other) Government demand for their products and services and may be significantly affected by changes in government regulations and spending, as well as economic conditions and industry consolidation. Professional Services Company Risk. Professional services companies may be materially impacted by economic conditions and related fluctuations in client demand for marketing, business, technology and other consulting services. Professional services companies’ success depends in large part on attracting and retaining key employees and a failure to do so could adversely affect a company’s business. There are relatively few barriers to entry into the professional services market, and new competitors could readily seek to compete in one or more market segments, which could adversely affect a professional services company’s operating results through pricing pressure and loss of market share. Information Technology Sector Risk. The information technology sector includes companies engaged in internet software and services, technology hardware and storage peripherals, electronic equipment instruments and components, and semiconductors and semiconductor equipment. Information technology companies face intense competition, both domestically and internationally, which may have an adverse effect on profit margins. These companies may have limited product lines, markets, financial resources or personnel. The products of information technology companies may face rapid product obsolescence due to technological developments and frequent new product introduction, unpredictable changes in growth rates and competition for the services of qualified personnel. Failure to introduce new products, develop and maintain a loyal customer base, or achieve general market acceptance for their products could have a material adverse effect on a company’s business. Companies in the information technology sector are heavily dependent on intellectual property and the loss of patent, copyright and trademark protections may adversely affect the profitability of these companies. Internet Company Risk. Many Internet-related companies have incurred large losses since their inception and may continue to incur large losses in the hope of capturing market share and generating future revenues. Accordingly, many such companies expect to incur significant operating losses for the foreseeable future, and may never be profitable. The markets in which many Internet companies compete face rapidly evolving industry standards, frequent new service and product announcements, introductions and enhancements, and changing customer demands. The failure of an Internet company to adapt to such changes could have a material adverse effect on the company’s business.

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DISCLOSURES

Software Industry Risk. The software industry can be significantly affected by intense competition, aggressive pricing, technological innovations, and product obsolescence. Companies in the software industry are subject to significant competitive pressures, such as aggressive pricing, new market entrants, competition for market share, short product cycles due to an accelerated rate of technological developments and the potential for limited earnings and/or falling profit margins. These companies also face the risks that new services, equipment or technologies will not be accepted by consumers and businesses or will become rapidly obsolete. These factors can affect the profitability of these companies and, as a result, the value of their securities. Also, patent protection is integral to the success of many companies in this industry, and profitability can be affected materially by, among other things, the cost of obtaining (or failing to obtain) patent approvals, the cost of litigating patent infringement and the loss of patent protection for products (which significantly increases pricing pressures and can materially reduce profitability with respect to such products). In addition, many software companies have limited operating histories. Prices of these companies’ securities historically have been more volatile than other securities, especially over the short term. Semiconductor Company Risk. Competitive pressures may have a significant effect on the financial condition of semiconductor companies and, as product cycles shorten and manufacturing capacity increases, these companies may become increasingly subject to aggressive pricing, which hampers profitability. Reduced demand for end-user products, under-utilization of manufacturing capacity, and other factors could adversely impact the operating results of companies in the semiconductor sector. Semiconductor companies typically face high capital costs and may be heavily dependent on intellectual property rights. The semiconductor sector is highly cyclical, which may cause the operating results of many semiconductor companies to vary significantly. The stock prices of companies in the semiconductor sector have been and likely will continue to be extremely volatile. Health Care Sector Risk. The health care sector may be affected by government regulations and government health care programs, restrictions on government reimbursement for medical expenses, increases or decreases in the cost of medical products and services and product liability claims, among other factors. Many health care companies are: (i) heavily dependent on patent protection and intellectual property rights and the expiration of a patent may adversely affect their profitability; (ii) subject to extensive litigation based on product liability and similar claims; and (iii) subject to competitive forces that may make it difficult to raise prices and, in fact, may result in price discounting. Many health care products and services may be subject to regulatory approvals. The process of obtaining such approvals may be long and costly, and delays or failure to receive such approvals may negatively impact the business of such companies. Additional or more stringent laws and regulations enacted in the future could have a material adverse effect on such companies in the health care sector. In addition, issuers in the health care sector include issuers having their principal activities in the biotechnology industry, medical laboratories and research, drug laboratories and research and drug manufacturers, which have the additional risks described below. Biotechnology Company Risk. A biotechnology company’s valuation can often be based largely on the potential or actual performance of a limited number of products and can accordingly be greatly affected if one of its products proves, among other things, unsafe, ineffective or unprofitable. Biotechnology companies are subject to regulation by, and the restrictions of, the U.S. Food and Drug Administration, the U.S. Environmental Protection Agency, state and local governments, and foreign regulatory authorities. Pharmaceutical Company Risk. Companies in the pharmaceutical industry can be significantly affected by, among other things, government approval of products and services, government regulation and reimbursement rates, product liability claims, patent expirations and protection and intense competition.

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DISCLOSURES

Cryptocurrency Risk. Cryptocurrency (notably, bitcoin), often referred to as ‘‘virtual currency’’ or ‘‘digital currency,’’ operates as a decentralized, peer-to-peer financial exchange and value storage that is used like money. The strategy may have exposure to bitcoin, a cryptocurrency, indirectly through an investment in the Bitcoin Investment Trust (‘‘GBTC’’), a privately offered, open-end investment vehicle. Cryptocurrency operates without central authority or banks and is not back by any government. Even indirectly, cryptocurrencies (i.e., bitcoin) may experience very high volatility and related investment vehicles like GBTC may be affected by such volatility. Cryptocurrency is also not legal tender. Federal, state or foreign governments may restrict the use and exchange of cryptocurrency, and regulation in the U.S. is still developing. Cryptocurrency exchanges may stop operating or permanently shut down due to fraud, technical glitches, hackers or malware. Cryptocurrency Tax Risk. Many significant aspects of the U.S. federal income tax treatment of investments in bitcoin are uncertain and an investment in bitcoin may produce income that is not treated as qualifying income for purposes of the income test applicable to regulated investment companies. GBTC is expected to be treated as a grantor trust for U.S. federal income tax purposes, and therefore an investment by the Fund in GBTC will generally be treated as a direct investment in bitcoin for such purposes.

Award Information:

Women In Finance, Outstanding Contribution: Number of Nominees: Unknown. Ranking Entity: Markets Media; Length of the period: 12 MonthsCriteria on which the ranking is based: Markets Media’s editorial team identifies candidates via online submissions from market participants, including those across the institutional buy side and sell side. (Award Page: http://marketsmedia.com/announcing-the-2016-markets-choice-award-winners/)

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Emerge Capital Management Inc. is an authorized distributor for ARK Investment Management LLC. and the separate account administrator. Emerge Capital Management Inc. is registered with the Securities and Exchange Commission and does not have suitability responsibility or discretion in the accounts sub-advised by ARK Investment Management LLC. Strategy allocations and metrics provided may not reflect actual accounts, as each account may differ. The information and data made available in this presentation is in part site is provided by third parties. Although the information and data is believed to be accurate, Emerge does not independently verify the accuracy or the research and insights provided, nor do they imply any warranty of any kind regarding the information provided. No assurance can be given that the strategy will achieve its objectives, outperform any benchmark or be able to replicate its past performance.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. ALL INVESTMENT STRATEGIES OFFERED INVOLVE RISK, INCLUDING BUT NOT LIMITED TO LOSS OF PRINCIPAL.

The EMERGE Team would be pleased to assist you with:

• Strategy questions• Branch Training• Materials and Kits• Marketing Planning• Proposal support• RFP Support• New account set-up

For questions and support, please contact Emerge at 1-877-8EMERGE or [email protected]

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