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.
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.
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.
The Metaverse is not science fiction or a futuristic concept, it’s a real, tangible investment opportunity for the here and now.
Our Metaverse strategy contains four sub-themes to ensure diversification.
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.
The Metaverse is made possible by platforms that enable content creation, live experiences, user interface, and social interactions.
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.
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.
Innovative companies are creating solutions to address pressures on scarce natural resources and the need for greenhouse gas emission reduction.
Ageing and lifestyle
Ageing population trends are creating opportunities for long-term growth investors due to growing demand for healthcare, leisure, wellness, housing and more.
Digitalisation empowers consumers like never before with 24 hour, mobile access to a vast choice of products - companies must evolve to remain competitive.
More industries can now use robotics offering greater sophistication, precision for repetitive or hazardous tasks, and may provide affordable labour solutions.
A rapidly growing global middle class is likely to create growth opportunities as goods and infrastructure demand shifts from the basic to the aspirational.
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.