Invesco establishes metaverse-focused fund

This week, investment management company Invesco launched a metaverse-focused fund called the Invesco Metaverse Fund. The company will now invest in various mid-large and small-sized companies globally.

The fund has seven main investment areas, which include next-gen operating and computer systems, hardware devices that provide access to the metaverse, hyperconnectivity networks, immersive platforms developed with artificial intelligence (AI), blockchain, interchange tools necessary in interoperability and services alongside assets that may digitalize the real economy, as per Citywire’s Chris Sloley.

The metaverse fund was a follow-up to the company’s active engagement to leverage and benefit from the lucrative immersive virtual worlds.

“We will seek to capitalize on these opportunities through a highly selective, valuation-conscious approach,” Invesco fund manager Tony Roberts said.

More details on Invesco Metaverse Fund

According to The Block’s Callan Quinn, the metaverse fund will be managed by Roberts and deputy fund manager James McDermottroe.

“The fund’s performance is measured against the MSCI AC World (Net Total Return) benchmark. It has share classes registered in the UK, Germany, France, the Netherlands, Finland, the Czech Republic, Sweden, Austria, Belgium, Italy, Luxembourg, Norway, Slovakia and Spain,” Sloley wrote.

With an apparent shift to Web3, Roberts acknowledged the company was well-versed with how lucrative the sector can be, adding that VR and augmented reality in the sector could contribute up to £1.4 trillion ($1.65 trillion) to the global economy in 2030.

“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,” Roberts said.

Previous similar initiatives

The metaverse fund was not the first and likely will not be the last. Last September, Invesco partnered with a digital asset and blockchain company, Galaxy Digital. Owned by American businessman Michael Novogratz, both parties aimed to develop various cryptocurrencies linked to exchange-traded funds (ETF).

Galaxy Digital is known for exposing its clients to “every investable corner of the crypto and blockchain ecosystems” and pairing it with Invesco could help the company increase its ever-growing ETF index, which grew almost thrice over the last three years before the two announced their partnership.

“Invesco has a long history of using ETFs to democratize investor access to disruptive, innovative asset classes,” Invesco head of Americas in ETFs & Indexed Strategies John Hoffman said last year.

“Now, through our partnership with market leader Galaxy Digital, we are able to incorporate their expertise of blockchain technology, digital assets and cryptocurrency into our product capabilities.”

It is also worth noting that in 2019, Invesco released its blockchain ETF and has been trading on the London Stock Exchange since then. According to The Block’s Carol Gaszcz, Elwood Asset Management was used as its proprietary scoring system to filter over 40 firms to invest.

“We are beginning to see the technology being used by financial services companies in particular, but we expect greater application of blockchain technology across a wide range of industries,” Elwood chief executive Bin Ren said.

Since that year, Invesco has been investing in blockchain-related companies, and its efforts will resume this year via the metaverse fund.