A Huge Crypto Bet Spawns the World’s Top-Performing ESG Fund (1)

The world’s best-performing ESG fund of 2023 was built by Ark Investment Management LLC and powered by a huge bet on crypto.

The $2.4 billion Nikko AM Ark Positive Change Innovation Fund (ticker NIPCIPJ LX) returned 68% last year, more than double the gains delivered by the S&P 500. Its biggest holding was Coinbase Global Inc., which makes up almost a tenth of the fund, according to data compiled by Bloomberg. The Nikko-Ark fund is registered as “promoting” ESG under European rules.

The outperformance caps a year in which investing in funds with environmental, social and governance themes ...