Wealth management sector failure driving high-net-worth clients to collectables
Disillusionment with the wealth management industry is increasingly driving high-net-worth individuals (in the UK) to invest in art and other collectables.
The trend was also being driven by uncertainty in global financial markets and a lack of attractive alternative investments, both of which are contributing to a lack of confidence in financial markets, according to Datamonitor financial services senior analyst Susan Ellis.
A further driver of increased demand for tangible assets by high-net-worth assets is the bargain prices attached to some of these investments.
“The fine art market, for example, has decreased by 35 per cent this year,” Ellis said.
“Investing in tangible assets, such as art, gold bullion, jewellery and collectable cars, is currently the equivalent of putting money under the mattress for high-net-worth individuals.”
Ellis advised the wealth management industry to learn from this experience to “get back on track, with wealth managers needing to hone their skills concerning investment choice”.
The trend to collectable assets as a way of preserving wealth is at the same time driving valuations in the UK insurance sector, she said.
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