Mintus research shows art will be the second most popular alternative investment over the next twelve months
LONDON, UNITED KINGDOM, February 20, 2023 /EINPresswire.com/ -- • 17% of investors with a $1m+ portfolio plan to maintain their exposure to art in the next 12 months – ahead of cryptocurrency at 14% and Private Equity & Venture Capital at 12%
• Experienced investors have an average of three alternative asset classes in their portfolios as the appetite for diversification grows
• Geographically, 62% of US-based wealthy investors have art in their portfolio compared to only 4% in the UAE
Mintus, the online art investment platform that offers fractional investment in multi-million-dollar art, conducted a global survey of wealthy individuals with investable assets of at least $1 million*. Key findings were that as many as 42% of experienced investors have art in their portfolio despite the reputation of art investment as a specialist pursuit. Where art was present in an investor’s portfolio it accounted for 6% of investable assets.
Looking ahead to the next 12 months’ investment plans, 17% of wealthy investors are looking to maintain their exposure to art, ahead of cryptocurrency at 14% and Private Equity & Venture Capital at 12%. Comparatively, only 7% investors expect to maintain their portfolio exposure to wine and spirits in 2023, showcasing art investment as an asset class to watch this year.
The average number of asset classes held by investors currently is six, which typically includes, on average, three alternative assets. This means there is a 50:50 split in value between traditional and alternative asset classes across their portfolios. This split highlights the upward trend in portfolio diversification across a range of alternative asset classes in response to recent market turmoil and the underperformance of the classic 60/40 portfolio. This trend is enabled by access to new assets via growing online platforms, paving the way for fractional art investment to continue its upward growth.
Aside from investor habits, there are also geographical differences that play a role in attitude towards art investment, with 62% of experienced investors in the US and 40% in the UK claiming art in their portfolio, and only 4% of investors in emerging markets such as the UAE admitting to the same. Yet considering this, adoption in countries such as the UAE is far more open to fractional art investment, with 83% of art investors having invested in fractional art as opposed to the US, which saw only 17%. As the US already has established art industries in contrast to the UAE, fractional art investment is likely to see greater adoption in emerging markets.
Tamer Ozmen, CEO & Founder of Mintus, on the findings said: “The wealthy investors surveyed by Mintus are leading the way with significant diversification across traditional and alternative asset classes in light of the challenging market conditions we’ve seen in recent years. They have shown a significant appetite for art investment, and have told us that they expect that to continue – no doubt a reflection of art’s historically strong performance during challenging economic times. Art is a unique investment, yet it is still a smart investment at heart so you don’t need to be an art aficionado to invest and benefit. It should be treated like any other asset class – the fact that we are seeing art craft a place for itself as a go-to portfolio diversifier is a step in the right direction, and we look forward to growing the fractional art investment market by offering attractive opportunities to investors.”
Mark Bedford, experienced investor and Mintus client, said: “I have invested in art and jewellery, mainly watches, as part of my diversified portfolio for some time. These are personal passions of mine that keep things interesting, but the art market has shown great resilience during recent volatility, helping to add an element of protection against multiple attacks.
“The beauty of what Mintus is doing with fractional ownership is that they are enabling investors, even with limited knowledge of art, to access an interesting growth opportunity and avoid the frostiness towards newcomers that the industry can be guilty of. You also avoid the huge mark-ups that galleries traditionally add to direct art investment, none of which the artists themselves ever benefit from.
“Personally, I won’t invest in art that I don’t like but that doesn’t have to be the case if you work with an expert platform like Mintus as they offer a wealth of data to inform your decision and dispel a lot of the myths and mystery that surrounds the art world. I do really like the works of George Condo that Mintus offers investment into – so in that case it’s the best of both worlds.”
About Mintus
Mintus is an online art investment platform, regulated by the Financial Conduct Authority, offering a new way to buy shares and invest in exceptional, multi-million-pound contemporary artworks. Mintus opens the annual $65bn art market to investors, allowing them to invest in the world’s greatest paintings at a fraction of their overall value. Paintings by Andy Warhol and George Condo are the first two works to be presented by Mintus. Mintus plans to offer $150m of inventory during the next 12 months, offering investors the opportunity to invest in other iconic individual paintings, and through curated portfolios of art.
https://www.mintus.com
• Experienced investors have an average of three alternative asset classes in their portfolios as the appetite for diversification grows
• Geographically, 62% of US-based wealthy investors have art in their portfolio compared to only 4% in the UAE
Mintus, the online art investment platform that offers fractional investment in multi-million-dollar art, conducted a global survey of wealthy individuals with investable assets of at least $1 million*. Key findings were that as many as 42% of experienced investors have art in their portfolio despite the reputation of art investment as a specialist pursuit. Where art was present in an investor’s portfolio it accounted for 6% of investable assets.
Looking ahead to the next 12 months’ investment plans, 17% of wealthy investors are looking to maintain their exposure to art, ahead of cryptocurrency at 14% and Private Equity & Venture Capital at 12%. Comparatively, only 7% investors expect to maintain their portfolio exposure to wine and spirits in 2023, showcasing art investment as an asset class to watch this year.
The average number of asset classes held by investors currently is six, which typically includes, on average, three alternative assets. This means there is a 50:50 split in value between traditional and alternative asset classes across their portfolios. This split highlights the upward trend in portfolio diversification across a range of alternative asset classes in response to recent market turmoil and the underperformance of the classic 60/40 portfolio. This trend is enabled by access to new assets via growing online platforms, paving the way for fractional art investment to continue its upward growth.
Aside from investor habits, there are also geographical differences that play a role in attitude towards art investment, with 62% of experienced investors in the US and 40% in the UK claiming art in their portfolio, and only 4% of investors in emerging markets such as the UAE admitting to the same. Yet considering this, adoption in countries such as the UAE is far more open to fractional art investment, with 83% of art investors having invested in fractional art as opposed to the US, which saw only 17%. As the US already has established art industries in contrast to the UAE, fractional art investment is likely to see greater adoption in emerging markets.
Tamer Ozmen, CEO & Founder of Mintus, on the findings said: “The wealthy investors surveyed by Mintus are leading the way with significant diversification across traditional and alternative asset classes in light of the challenging market conditions we’ve seen in recent years. They have shown a significant appetite for art investment, and have told us that they expect that to continue – no doubt a reflection of art’s historically strong performance during challenging economic times. Art is a unique investment, yet it is still a smart investment at heart so you don’t need to be an art aficionado to invest and benefit. It should be treated like any other asset class – the fact that we are seeing art craft a place for itself as a go-to portfolio diversifier is a step in the right direction, and we look forward to growing the fractional art investment market by offering attractive opportunities to investors.”
Mark Bedford, experienced investor and Mintus client, said: “I have invested in art and jewellery, mainly watches, as part of my diversified portfolio for some time. These are personal passions of mine that keep things interesting, but the art market has shown great resilience during recent volatility, helping to add an element of protection against multiple attacks.
“The beauty of what Mintus is doing with fractional ownership is that they are enabling investors, even with limited knowledge of art, to access an interesting growth opportunity and avoid the frostiness towards newcomers that the industry can be guilty of. You also avoid the huge mark-ups that galleries traditionally add to direct art investment, none of which the artists themselves ever benefit from.
“Personally, I won’t invest in art that I don’t like but that doesn’t have to be the case if you work with an expert platform like Mintus as they offer a wealth of data to inform your decision and dispel a lot of the myths and mystery that surrounds the art world. I do really like the works of George Condo that Mintus offers investment into – so in that case it’s the best of both worlds.”
About Mintus
Mintus is an online art investment platform, regulated by the Financial Conduct Authority, offering a new way to buy shares and invest in exceptional, multi-million-pound contemporary artworks. Mintus opens the annual $65bn art market to investors, allowing them to invest in the world’s greatest paintings at a fraction of their overall value. Paintings by Andy Warhol and George Condo are the first two works to be presented by Mintus. Mintus plans to offer $150m of inventory during the next 12 months, offering investors the opportunity to invest in other iconic individual paintings, and through curated portfolios of art.
https://www.mintus.com
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