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.
Recommended for you
More than 20 winners have been revealed for the annual Fund Manager of the Year Awards.
Regal Partners has announced its latest alternatives acquisition, taking a 50 per cent stake in real estate and advisory platform Ark Capital Partners ahead of a future hotel strategy launch.
Bell Financial Group has partnered with investment solution provider Briefcase to deliver access to direct indexing technology to its clients.
Australian investors have made “extraordinary” flows into managed funds since the start of the year, more than 20 times the same period a year ago.
