Union Investment, a subsidiary of DZ Bank and a key player in tokenized asset investments with €455 billion ($493bn) under management, has unveiled its latest venture: the UniThemen Blockchain fund. The fund marks a departure from its traditional approach, allocating up to 15% of its assets indirectly to crypto tokens through certificates.
Exploring New Avenues
In a strategic move, Union Investment has diversified its portfolio by venturing into blockchain and digital assets. Jochen Kerler, Head of Alternative Investments in Product Management at Union Investment, emphasized that the asset structure will witness a considerable expansion in the future. He stated, “Alternative forms of investment should also be expanded to include token-based assets.”
Investment Strategy and Portfolio Allocation
The UniThemen Blockchain fund is set to allocate a significant portion, ranging from 65% to 100%, of its assets to domestic and international stocks associated with blockchain, distributed ledger technology (DLT), and digital assets. In a bid to maintain a balanced portfolio, bonds will also be considered, but they will not exceed 20% of the total assets.
Previous Ventures and Market Trends
Union Investment’s foray into blockchain is not unprecedented. The company has a track record of investing in tokenized assets, such as the first two European Investment Bank euro-denominated digital bonds. Additionally, they have acquired Siemens public blockchain bonds, showcasing their commitment to staying at the forefront of emerging investment trends.
In a move mirroring Union Investment’s initiative, Hamilton Lane, another prominent asset manager, has announced plans to introduce a new digital fund share class within an existing fund boasting almost $4 billion in assets. This signals a broader industry trend towards embracing digital investment instruments.
Adapting to Changing Dynamics
Acknowledging the evolving landscape of investment opportunities, Union Investment has made strides in adapting to changing dynamics. Last year, the asset manager invested in tokenized fund units issued by Metzler Asset Management. This proactive approach aligns with the industry’s shifting focus towards embracing digitalization and blockchain-based assets.
In conclusion, Union Investment’s launch of the UniThemen Blockchain fund reflects a strategic move to diversify its investment portfolio. With a judicious allocation strategy encompassing blockchain, DLT, and digital assets, the fund positions itself at the intersection of traditional finance and the rapidly evolving digital economy.
