- Continued technological progress.
Technical challenges still need to be overcome to make metauniverse experiences fully accessible to everyone. For example, as a result of technical limitations, the Meta's Horizon Worlds limit the number of participants per session. Constant improvements in computing power allow larger virtual worlds to exist. Cloud and edge computing allow big data-intensive processes such as graphics rendering to move to local devices. The rapid adoption of 5G enables mobile devices to access these voluminous worlds more easily and at higher speeds. At the same time, the cost of manufacturing the hardware for augmented and virtual reality is falling. In 2021 Meta has shipped ten million Oculus Quest 2 headsets, and new devices such as haptic gloves and bodysuits are also coming to the market with increasing frequency.
- Major investments in the infrastructure of the metaverse.
In 2021, Meta invests $10 billion in the meta universe. Other tech companies have also dedicated resources to building it, such as the recent launch of the NVIDIA Omniverse design and simulation platform and the recent metaverse-friendly updates from the Unity Engine, a platform for game developers. Also, the metaverse dominated the annual Consumer Electronics Show. More and more companies, large and small, are willing to participate.
- Wider use.
Games in the metaverse are now mainstream. Uses are expanding into new immersive shopping, entertainment, sports and educational experiences. There are also enterprise applications and capabilities of the metaverse, including virtual employee training and team collaboration with avatars, virtual prototyping in manufacturing, construction, and virtual showrooms for products such as cars. Even government organizations are experimenting with the metaverse. In South Korea, the city of Seoul announced a five-year Metaverse Seoul master plan that will begin with the creation of a virtual mayoral office and campus in Seoul.
- Online commerce is leading.
Omnichannel commerce is now second nature to most users of the metaverse—payment credentials are often built into the devices and software users use. The virtual goods economy accounts for more than 40 percent of global gaming revenue, generated by over a billion gamers worldwide.
- Demographic headwind.
The oldest Gen Z users are in their mid-20s. They are a future economic force to be reckoned with. These consumers are more familiar with virtual worlds, transactions and goods than previous generations. Gaming leads the way: 67% of the 50 million daily users of Roblox (a platform for creating and playing online games) are under the age of 16, which may signal the arrival of a whole new generation of "natives of the metaverse."
This information is marketing material and does not present investment consultation, advice, investment research, or investment recommendation. The information is valid as of the issue date of the marketing material and may alter in the future. The value of the units in the collective investment schemes changes over time and it could be higher or lower from the value at the time of the investment. No profits are guaranteed and risk exists for the investors to not receive the full amount of their investments. Investments are not guaranteed by a guarantee fund which is created by the country or another form of guarantee. Information on the performance of the financial instruments in the past is not a reliable indicator for future performance. Therefore, it is recommended for investors to acquaint themselves with the Prospectus and the Document with key information for investors before making a final investment decision. You can find these documents in Bulgarian on the website of Compass Invest - www.compass-invest.eu, and you can request and get a free paper copy at the office of the management company at: Sofia, 19 George Washington Str, floor 2, during every business day from 9 am to 5 pm. Future results are subject to taxation, which depends on the personal situation of each investor and may change in the future. A summary of the rights of the investors is available at the following hyperlink in Bulgarian: here. The mutual funds, which are managed by Compass Invest, are actively managed without following an index. We would like to inform you that Management Company Compass Invest can make a decision to terminate the offering of funds on the territory of the Republic of Bulgaria. The investment in units of mutual funds, in addition to benefits, carries certain risks like: liquid, operational, interest, currency, and political risk, as well as macroeconomical risk, currency risk, concentration risk, etc. The full information about risks can be found in the Prospectus of the respective fund.
Risks:
Despite all the benefits, the investment in shares of mutual funds brings certain risks like:
1) Market risk with the following components: a) interest risk related to a decrease of the value of the investment due to a change of the interest rates levels b) currency risk related to a decrease of the value of the investment, denominated in a currency which is different from BGN and EUR c) price risk related to a decrease of the value of the investment in the case of unfavorable changes of the market’s prices;
2) Credit risk – related to a decrease of the value of the position in the case of unexpected events with a credit nature which are related to the issuers of financial instruments, the counter side of exchange and OTC transactions, as well as countries, in which they operate;
3) Operational risk – from errors or flaws in the system of the organization
4) Liquidity risk – in case of forced sales of assets under unfavorable market conditions;
5) Concentration risk – in case of incorrect diversification of exposures to groups of related clients, from the same economic branch, geographic area, etc.
6) Position risk which is related to the change of price of a certain instrument in result of factors related to the issuer or in case of a derivative instrument – related to the issuer of the base instrument;
Additional information for the risks can be found in the Prospectus of the respective fund, which is available here: www.compass-invest.eu