The institution believes that the trading of tokenized assets is the future of finance. The fund focuses on the FinTech industry because it has aroused the interest of investors.
Swiss bank Lombard Odier has the objective of seeking companies focusing on asset tokenization to finance them. The financial institution created in May an investment fund that has already accumulated USD 250 million. Its strategy focuses on capturing value from the current global expansion of the financial technology services sector.
The 200-year-old banking group views the tokenization of assets as the evolution of finance. On their website, they state that the future of the economy will focus on the trading of digital assets. These will be real estate assets, companies, copyright, or any other registered in a blockchain.
Lombard Odier Investment Managers, the banking group’s asset management arm, used that approach to create the Global FinTech investment fund. The strategy consists of creating a portfolio of 50 stocks chosen among companies with sustainable business models and a solid financial track record. This would be aimed at producing attractive long-term economic returns.
According to Jeroen van Oerle, co-manager of the fund, once they create the portfolio, they will be able to offer investors full access to stocks across the FinTech spectrum. It will include established companies with a global reputation and those that enable financial and technological transformation in the industry.
Given that the companies in the FinTech industry have grown in recent years, the fund’s investment considers that the sector has aroused the interest of investors, clarified Didier Rabattu, director of the financial institution.
“The rate of growth that FinTech companies have experienced in recent years has been an area of great interest for investors. Their appetite to take advantage of the speed of FinTech expansion, their rate of adoption by financial services companies globally, and their impact on global markets has only increased over time. As FinTech strategies continue to prevail in developing markets, the opportunities will be significant,” said Rabattu.
Preparing for the Economy of the Future
The Global FinTech team believes that asset tokenization is the future of the economy and that companies working in this field will eventually become winners. In their document, they explain that asset management will change substantially when tokens become part of the investment universe.
The analysts add that focusing on tokenized assets will allow private banks to profit since they will be able to offer custody and issuance services. Their customers will also have access to alternatives to diversify their assets. However, the Lombard Odier team claims that they are aware of the need for many things to align for this future to materialize. For that reason, they have now decided to identify and invest in companies already working in the sector.
Lombard Odier agrees with the president of the US Securities and Exchange Commission, who stated that he does not see the tokenization of traded securities with bad eyes, as long as they are duly registered with the SEC.
By Alexander Salazar
