Chief Investment Officer, MWC Group
Introducing Art as an Asset Class - A New Era of Investment Solutions
As public markets continue to face headwinds, investors and advisors alike increasingly look to private markets for returns. The next evolution of portfolio construction requires reframing classic asset allocations with alternative sources of diversification and return. While there is high demand for art as an alternative investment from clients, as 85% of wealth managers believe art should be included in their offerings according to Deloitte, the advisor community needs data and accessible products to offer art in client portfolios. This Ed Talk will help advisors learn and think about art as an asset class and the products that can be deployed to achieve the benefits of the art market.
Allen Sukholitsky, CFA® Chief Investment Officer at MWC Group makes the case for investing in art, and weighs in on how advisors can leverage the asset class to diversify their portfolio, enhance returns and mitigate risk.
While institutions and ultra high net-worth investors have enjoyed the benefits of art collecting for centuries, high price tags and purchases fees have made the asset class inaccessible for most investors. According to Masterwork’s research, art is one of the largest private unsecuritized asset classes and represents a roughly $1.7 trillion market cap. Art offers a strong historical track record, low correlation to traditional asset classes and serves as a truly differentiated diversifier.
MWC Group’s Diversified Art Portfolio focuses on the contemporary art sector, and allocates to securities of underlying single asset issuers, providing clients with broad diversification benefits and access.
Masterworks, founded in 2017, set out with the mission of democratizing art investing and today is one of the largest art buyers in the industry. Masterworks was the first firm to securitize a painting with the SEC, and is supported by an in-house macro and quantitative research team directing art acquisitions and sales. MWC Group, a part of Masterworks, serves the advisor community and offers a number of diversified art investment solutions.