Quick take:
- HSBC has launched a metaverse-themed fund for wealthy Asian clients.
- The UK banking giant said its metaverse fund will focus on infrastructure, computing, virtualisation, experience and discovery, and interface segments.
- HSBC recently bought a plot in The Sandbox metaverse platform to make its entry into the immersive virtual world.
HSBC is taking its metaverse bet to another level. The global investment banking giant on Wednesday announced the launch of a metaverse-themed fund for rich Asian clients. The announcement comes just weeks after the fund manager bought a digital plot of land in The Sandbox metaverse platform.
The UK-based company has named its new fund Metaverse Discretionary Strategy portfolio and will be managed by its asset management arm. The fund will focus on “investing within the metaverse ecosystem across five segments – infrastructure, computing, virtualisation, experience and discovery, and interface.”
Commenting on the new portfolio launch, Lina Lim, regional head of discretionary and funds for investments and wealth solutions, Asia Pacific, at HSBC said the decision to launch the fund was necessitated by the rapid evolution of the metaverse.
“We see many exciting opportunities in this space as companies of different backgrounds and sizes are flocking into the ecosystem.”
Although the industry is yet to settle on one particular definition of the metaverse, some describe it as a 3D virtual space of interconnected immersive worlds where people can engage in gaming, socialising experiences, and economic activities using 3D avatars.
It has become an industry trend since last October when social media giant Facebook rebranded to Meta Platforms in a nod to the massive potential of the metaverse. Meta has taken a different direction from an ad-driven social media ecosystem to focus on a new future defined by the immersive 3D worlds.
While the UK banking giant is not looking to launch its own metaverse world, it has already made a giant step by launching a fund that invests in metaverse products. HSBC said the new fund will target “high net worth and ultra-high net worth professional investors and accredited investor clients in Hong Kong and Singapore.”
The company has committed $3.5 billion to its wealth and p[ersonal banking business to augment its primary growth verticals. The company is aiming to become Asia’s top wealth manager by 2025.
Leading global investment management companies like UBS and Credit Suisse have also recently expanded their reach in the Asian market with China and India rapidly producing more billionaires and millionaires.
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