Invesco Jumps on the $5 Trillion Metaverse Race With New Thematic Fund

Leading investment management firm Invesco has forayed into Web3 with its first metaverse fund.
Image source: Invesco

Quick take:

  • Invesco has launched a metaverse-themed fund.
  • The investment management company joins a list of fund managers exploring opportunities in web3.
  • The fund will focus on seven verticals including immersive technologies, blockchain infrastructure, and hyperconnectivity networks among others.

Invesco has launched a metaverse fund that focuses on seven thematic segments of the industry. The UK-based investment management company joins a growing list of fund managers looking to take advantage of the rapid growth of the metaverse.

According to the announcement, the fund will invest in large, medium and small-cap companies across the US, Asia and Europe. Invesco’s fund is specifically targeting seven verticals within the space including companies offering next-generation computer systems, hardware and devices like VR/AR headsets, powerful networks for hyperconnectivity, and immersive platform builders, among others.

Invesco’s metaverse fund comes at the back of several fund managers that have already launched thematic funds for the immersive 3D space.

Proshares, First Trust, ETC Group, Global X and Fidelity have all launched metaverse-themed exchange-traded funds (ETFs) this year.

The metaverse is generally described as an interactive 3D virtual space comprised of interconnected immersive worlds where people can engage in various experiential activities, including gaming and virtual concerts.

The metaverse is projected to be worth trillions of dollars over the next 8-10 years with Mckinsey recently estimating a valuation of $5 trillion by 2030. Citi had previously placed a valuation of a whopping $13 trillion for the burgeoning industry, while Morgan Stanley and Goldman Sachs separately issued a project market value of $8 trillion.

Invesco’s metaverse fund will be managed by Tony Roberts, fund manager, and James McDermottroe, deputy fund manager, who are also members of the company’s UK-based Asia & Emerging Markets team.

Commenting on the fund, Roberts said: “While the metaverse’s applications to entertainment are increasingly well-understood, the interconnectivity that it enables will likely have a transformative impact across industries as diverse as healthcare, logistics, education and sport. We will seek to capitalise on these opportunities through a highly selective, valuation-conscious approach.” 

The fund’s performance was measured against the MSCI AC World (Net Total Return) benchmark and will attract a management fee of 0.75%. 

“At Invesco, we will always aim to offer clients best-in-class solutions to help capture exciting opportunities – and the Metaverse is certainly one of these,” added Alexander Millar, head of UK distribution at Invesco.

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