AXA IM launches Metaverse strategy strengthening its thematic offering

• AXA Investment Managers (AXA IM) launches the AXA IM Metaverse strategy that aims to invest in companies which play a part in the convergence of the digital and physical world.
• This new strategy is managed by Pauline Llandric, alongside AXA IM’s wider global thematics team, and will complement its thematic range, particularly its existing Robotech and Digital Economy strategies.

AXA Investment Managers (AXA IM) today announces the launch of the AXA IM Metaverse strategy that aims to invest in companies which play a part in the convergence of the digital and physical world. Making up part of AXA IM UK’s  thematic equity range[1], it will invest in rising Metaverse growth opportunities in a rapidly evolving economy.

The global strategy will be an actively managed, multi-cap equity strategy investing in long-term growth opportunities presented by the Metaverse in both developed and emerging markets, leveraging AXA IM’s longstanding expertise in managing strategies based on disruptive technologies.

The strategy will invest across four key sub themes to provide exposure to long-term trends which allow diversification to suit changing market conditions, as outlined below:

Gaming – Largely recognized as the first building block of the Metaverse and provides an immersive way to explore endless worlds, create personalized experiences and have simultaneous interactions with a large number of players.

Socializing – The Metaverse is enabled by platforms providing content creation, ongoing maintenance of live experiences, user interface and social interactions.

Working – The world of industry is expected to be a large part of the Metaverse market, as increasingly sophisticated capabilities enable specialists to design and simulate powerful 3D real-time simulations, or ‘digital twins’.  For office workers, the Metaverse also brings exciting opportunities for a more collaborative and immersive working environment.

Enabling – Enablers will be key to determine the pace of development for Metaverse and encompass sectors such as semiconductors, technological infrastructure, cybersecurity and payment.

Commenting on the launch, Pauline Llandric, lead manager of the AXA IM Metaverse strategy, said: “We are at the early stages of a long-term trend which is growing rapidly and believe there is a broad range of global companies and opportunities in this space. Revolutionary, cutting edge advances in technology have changed how we live, socialize, work and do business. The Metaverse is the confluence of the virtual and physical worlds, where more technology is layered on to everyday life associated with the evolution of the internet connecting people, places and things.”

The current Metaverse universe is made up of around 250 stocks and AXA IM will select the best 40-60 names deemed most relevant because of its fundamental research and stock selection process.

The strategy will be managed by Pauline Llandric, alongside co-managers Tom Riley and Jeremy Gleeson who run AXA IM’s Robotech and Digital Economy strategies, respectively.

Mark Hargraves, Global Head of AXA IM Equity, added: “We believe AXA IM is one of the first active thematic Metaverse investors and this strategy launch builds on our established history in long-term thematic investment. The Metaverse is an expanding and tangible investment opportunity, driven by real companies with the potential to deliver strong year-on-year growth over the next decade. With a global customer base, we expect to see an increasing number of companies emerging from new sectors – such as healthcare and financials – as capabilities increase to bolster the promising investment opportunities in this space.”