MFC Asset Management (MFC) will debut "M-META", Thailand's first equity fund with investment in the metaverse, through an initial public offering which runs until Dec 20.
MFC Metaverse Equity Fund or M-META invests in businesses that benefit from the economic aspect of the metaverse that also provide returns in the physical world.
The fund has a policy to invest in only one foreign mutual fund, the Roundhill Ball Metaverse ETF (META ETF), which will serve as a master fund. It is the first US fund that directly invests in companies associated with the metaverse.
The master fund assesses if the company will have a future in the metaverse and allocates its investment weight according to the company's proportion of revenue and profits tied to the metaverse.
It will invest according to the Metaverse Market Map, a classification of businesses based on a company's connection to the metaverse in which the group has formulated by forecasting each company's potential involvement and benefits from the digital world.
The fund assesses companies by considering their public information, patent filing, scientific and technological developments, company-hosted presentations or speeches, interviews and industry assessments from other agencies.
They also have a panel of experts to monitor, review and adjust the Metaverse Market Map quarterly in accordance with each company's development, technological advancement and marketing practices.
Hence, M-META is an investment to capture returns from the surging growth of the metaverse in the long term from seven types of businesses in the metaverse ecosystem including hardware, software, cloud computing, payment systems, network links and information transmission, games or other content, and various digital assets on metaverse platforms.
A few metaverse-related companies that M-META supports are graphics card manufacturer Nvidia, online gaming platform Roblox, social media platform META Platforms (Facebook), web operator Tencent, cryptocurrency platform Coinbase, China's e-commerce giant Alibaba and US financial services company Square.
Each is a successful and reputable global corporation that benefits from metaverse-related businesses with high growth potential, MFC stated.
MFC's M-META is the global equity feeder fund that invests in unit trusts averaging no less than 80% of the net asset value of the mutual fund in one accounting year.