Union Investment introduces UniThemen Blockchain Fund

Union Investment, a subsidiary of DZ Bank and a leading tokenized asset investment company with €455 billion ($493 billion) under management, has announced its latest venture, the UniThemen blockchain fund. The fund marks a departure from traditional approaches, allocating up to 15% of its assets to crypto tokens indirectly through certificates.

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In a strategic move, Union Investments has diversified its portfolio by expanding into blockchain and digital assets. Jochen Kahler, Head of Alternative Investment Products Management at Union Investments, emphasized that the asset structure will expand significantly in the future. He said that “alternative investment forms should also be expanded to include token-based assets.”

Investment strategy and portfolio allocation

UniThemen Blockchain Fund plans to allocate a significant portion of its assets, between 65% and 100%, to domestic and international equities related to blockchain, distributed ledger technology (DLT), and digital assets. Bonds may also be considered to maintain a balanced portfolio, but bonds should not exceed 20% of total assets.

Past business and market trends

Union Investment’s foray into blockchain is not unprecedented. The firm has a track record of investing in tokenized assets, including the European Investment Bank’s first two euro-denominated digital bonds. Additionally, we acquired Siemens public blockchain bonds, demonstrating our commitment to staying at the forefront of emerging investment trends.

In a move that mirrors Union Investment’s efforts, another prominent asset manager, Hamilton Lane, announced plans to introduce a new digital fund share class within its existing funds, which have approximately $4 billion in assets. did. This shows that the industry as a whole is trending towards adopting digital investment products.

Adapting to changing dynamics

Recognizing the evolving landscape of investment opportunities, Union Investments has made strides in adapting to changing dynamics. Last year, the asset manager invested in tokenized fund units issued by Metzeler Asset Management. This proactive approach is consistent with the industry’s changing focus towards digitalization and the adoption of blockchain-based assets.

In conclusion, the launch of the UniThemen blockchain fund by Union Investment reflects a strategic move to diversify its investment portfolio. With a prudent allocation strategy that includes blockchain, DLT and digital assets, the fund positions itself at the intersection of traditional finance and the rapidly evolving digital economy.