Metaverse

The Metaverse is an exciting, tangible and growing opportunity driven by companies that, in our view, have the potential to generate strong growth over the next few decades.

What is the Metaverse?

Revolutionary, cutting edge advances in technology have changed how we live, socialise, work and do business. The Metaverse is the confluence of the virtual and physical worlds – while this may sound complex, it is in essence where more technology is being layered on to our everyday life. It can be associated with the multi-decade evolution of the internet from its beginnings as a source of information to an all-encompassing connector of people, places and things. We are at the early stages of a long-term trend which is growing rapidly, addressing a broad range of global companies and opportunities.

The growth of the Metaverse is driven by 3 accelerating factors:

  1. Innovative technological breakthroughs allowing change to happen
  2. Growing acceptance of virtual identities or blending virtual and physical experiences
  3. Significant scale allowing strong network effects and compelling economics

Why consider investing in the Metaverse?

The Metaverse is driven by companies that, from our perspective, have the potential to generate strong growth over the next decade. We are only at the beginning of this long-term trend and are seeing increasing investment opportunities, with the emergence of promising companies in sectors such as finance or healthcare.

The adoption and use of the Metaverse is a big shift where technology will become increasingly immersive and integrated into our daily lives.

The early days of the internet, or Web 1.0, mainly connected individuals to information. Then, the new and faster capabilities of Web 2.0 made it possible to connect individuals with each other, mainly through social networks.  This is the internet that we have all experienced over the last 10-15 years.

The next step we see emerging is that of the Metaverse, or Web 3.0, which will connect individuals - not only with each other, with but also with the places and elements around them.  The Metaverse is a viable investment opportunity, in full development, where technology will become more and more immersive and integrated into our daily lives.

Real, long-term opportunity based on tangible research and development

Numerous companies involved in the Metaverse already have a profitable business model and are financially sound, which is why the Metaverse is growing rapidly. In 2020, the market was already worth $500 billion with an estimated annual growth of between 10 and 15% per year. By 2024, this market could be worth $800 billion.1

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The Metaverse is not science fiction or a futuristic concept, it’s a real, tangible investment opportunity for the here and now.

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Pauline Llandric
Portfolio Manager

Our Strategy

Our Metaverse strategy contains four sub-themes to ensure diversification.

The themes are Gaming, Enabling, Socialising and Working, encompassing the intricacies and scale of the metaverse.

Gaming

Widely recognised as the first building block of Web 3.0, gaming offers an immersive way to explore infinite worlds, create personalised experiences, and interact simultaneously with a large number of players.

Socialising

The Metaverse is made possible by platforms that enable content creation, live experiences, user interface, and social interactions.

Working

Industry is expected to account for a significant share of the Metaverse market thanks to the increasingly sophisticated possibilities for specialists to design 3D simulations in real time. For office workers, the Metaverse also offers the opportunity to create a more collaborative and immersive work environment.

Technology & Enablers

Technology enablers will be key in determining the pace of development of the Metaverse, encompassing sectors such as semiconductors, technology infrastructure, cybersecurity and payments.

Why now?

The metaverse is driven by companies that, from our perspective, have the potential to generate strong growth over the next decade. We are only at the beginning of this long-term trend and are seeing increasing investment opportunities with the emergence of promising companies in sectors such as finance or healthcare.

How can investors access the evolving economy?

To help people invest in the companies that are embracing these changes, we have adapted our internal research capabilities to incorporate the five main trends that we believe represent the future for long-term fundamental growth investing.

Risk Warning

Investment in equities involves risks including the loss of capital and some specific risks such as counterparty risk, derivatives, geopolitical risk and volatility risk. Some strategies may also involve leverage, which may increase the effect of market movements on the portfolio and may result in significant risk of losses. The value of your investment and the income from it may rise or fall and you may not get back the amount originally invested.