Monega ARIAD Innovation Fund
WKN: 532102 ISIN: DE0005321020 Kurs: 79.49 € +1.08 % (27.09.2023)
1. The Idea
|Asset Class||Equities: particularly in small and midcap companies, Europe/USA/Japan|
|Investment Goal||Achieve marked outperformance in comparison to the relevant market|
|Investment Idea||Identify technological sector leaders on a scientific basis|
|Implementation||Stock selection based on patent portfolio quality and a value approach|
|Characteristic||Use of a scientifically sound patent approach|
|Portfolio||70-100 stocks, sectors: especially industry, health/pharmaceuticals, technology|
Monega ARIAD Innovation - The ARIAD Patent Equity Strategy
Innovations dominate our everyday lives as never before in human history. Buzzwords such as "digitisation", "3D printing", "robotics" or "virtual reality" are omnipresent in the media. Patents protect the "invisible" intellectual capital on the company's balance sheet and create additional sources of income thanks to licensing. The problem:
"How do I identify the future technological sector leaders and the really promising innovations?"
Making intellectual property visible and investable
The ARIAD Patent Equity Strategy is a stock selection method that invests in companies with attractive patent portfolios. The patent portfolio quality is calculated with the help of scientifically sound patent indicators.
Current Press Releases about the Strategy (German)
Takeover Candidates as a Positive Side Effect
The Monega ARIAD Innovation fund has achieved impressive returns in all three regions (Europe, USA and Japan) since the full implementation of the patent strategy in 2015.
Disclaimer: Past Performance Is Not Indicative Of Future Results!
The patent approach is very successful, especially for investments in small and midcap companies*, whose technologically innovative leadership is often only perceived by the market at a later stage ("Hidden Champions"). Accordingly, there is an above-average number of candidates for inclusion in the fund portfolio, which often only come to the attention of analysts after takeover offers from big players are announced and then suddenly leap up in value.
* Investment in small and midcap companies entails greater risks than investment in largecap companies.
Previous Takeovers in the Portfolio
Sorin Group | Kuka | Nobel Biocare | Cameron | Sharp | Broadcom | CSR | B/E Aerospace | Atmel | Arcam AB | Imagination Technology | Wincor Nixdorf | Baker Hughes | e2v | Alcatel-Lucent | Landauer | Rockwell Collins | Grammer AG | Pacific Biosciences | Parrot SA | Array Biopharma | AK Steel Holding | The Medicines Co | IMA S.p.A. | Immunomedics | MobileIron | Genmark Therapeutics | ADVA Optical Networking | Arena Pharmaceuticals | Tenneco | Plantronics/Poly | Haldex | iRobot | BOBST Group | Aerie Pharmaceuticals | SLM Solutions | Albireo Pharma
Current Megatrends in the Portfolio
* The distribution is the dynamic result of the investments following ARIAD's Patent Quality Ranking.
3. Investment Idea
Information Headstart Thanks to Patent Portfolio Analysis
The strategy approach is very simple to understand:
Most successful companies achieve their profits by using/licensing/selling innovative products and technologies. Patents protect these innovations and thus enable or safeguard the leading market position.
Since the intellectual capital does not appear on the company's balance sheet, the ARIAD Patent Equity Strategy can generate an information headstart here thanks to intensive preparation and analysis of patent data, which has also been scientifically tested.
4. The Process
This is How We Identify Promising Companies
Patent data makes potential innovations visible even before they are launched on the general market. However, not every patent becomes a profitable innovation and the sheer number of patents does not necessarily make a company successful. Using many, scientifically sound patent indicators, Monega ARIAD Innovation's patent approach can analyse and assess the quality of the patent portfolio.
Our patent database comprises more than 80 million data sets. However, they first of all have to be processed in a complex process, made usable in quantitative terms, group structures have to be researched and patents correctly assigned to the quoted parent company. Further steps include calculating and weighting patent indicators in order to finally receive the qualitative assessment of the patent portfolio.
On the basis of this information, from a total of more than 5,000 companies with patents, the ARIAD Patent Share Strategy selects around 200 companies whose patent portfolios are the most promising (company ranking). Of these 200 companies, those that have the best opportunity/risk ratio according to the value approach are included in the strategy portfolio.
5. Fund Data
Fund Data and Conditions
|Monega ARIAD Innovation (R)|
|Listing date||02.04.2001 (Strategy Change, start turnover : 01.07.14)|
|End of financial year||31.08.|
|Subscription fee||3,50% (max. 5,00%)|
|Administrative fee||1,30% (max. 1,50%)|
|Depository fee||0,08% (max. 0,15%)|
|Depository||HSBC Trinkaus & Burkhardt AG|
|Investment company||Monega KAG|
|Total Expense Ratio (TER)(1)||1,56%|
(1) The Total Expense Ratio states total expenses (with the exception of the transaction costs), with respect to the average fund assets within a financial year.
(2) In addition, the relevant conditions of the depository or your house bank apply.
Opportunities and Risks
- Technical progress has never been as fast as it is today. Patents, which grant the right to make economic use of an invention, play a key role in this development.
- Monega ARIAD Innovation invests in companies with an attractive patent portfolio. Shares in companies with a low market value are preferred. Shares in small/midcaps are mainly included.
- Broad diversification thanks to investment in companies in various sectors. Regional diversification thanks to investment in the USA, Europe and Japan.
- From a total of 5,000 companies with patents, around 70 - 100 companies with the most promising patent portfolios are filtered out.
- Fund advice from ARIAD Asset Management.
- As a mixture for opportunity-oriented investors for long-term investments.
- Share risk: In our experience, shares are subject to strong price fluctuations and thus there is a risk of price drops.
- Interest change risk: The risk of the market interest rate changing during the term of the securities being held is associated with investments in fixed interest securities.
- Value change risk: As a result of investing the fund assets in individual securities, there is in particular the risk of value changes to the individual items.
- Capital market risk: The price or market value performance of financial products depends, in particular, on the performance of capital markets that are influenced by the world economy and economic and political conditions in the countries concerned.
- Currency risk: The fund's assets may be invested in a currency other than the fund currency. If the value of this currency falls against the fund currency, the value of the fund asset falls.
- Counterparty default risk: Losses may arise for the fund from the default of an issuer or a contracting partner against whom the fund has claims.
- Liquidity risk: The fund may invest some of its assets in securities that are not traded on a stock exchange or a similar market.
- Derivative risk: The fund uses derivatives, both for investment and for hedging purposes. The increased opportunities go hand in hand with increases risks of losses.
- Small and Midcap Companies: Investment in small and midcap companies entails greater risks than investment in largecap companies.
(for professional investors only)
©2018 ARIAD Asset Management GmbH
This publication is not a sales prospect in the meaning of the law, but a commercial representation that provides further information. It does not constitute a recommendation for action and does not replace individual investment advice by a bank/sales partner or either fiscal or legal counselling. Shares are sold exclusively on the basis of the current sales prospectus and key investor information. These and the current annual and semi-annual reports are available free of charge in German at Monega Kapitalanlagegesellschaft mbH, Stolkgasse 25-45, 50667 Cologne, and on the Internet at www.monega.de. In the sales prospectus, investment objectives, fees, risks and other important fund information are described in detail. Please read this carefully.
The statements on the market situation constitute our own view of the circumstances described. This does not imply any general validity or investment advice or recommendation. The publication may not be construed as a sale offer or an invitation to submit an offer for the purchase of securities, and does not in any way replace the advice required before each stock purchasing decision. The statements made in the publication are subject to change without notice. Despite careful selection of sources and examination of the contents, ARIAD Asset Management GmbH assumes no liability or guarantee for the correctness and completeness of the information provided in this publication.