Fine art and collectibles, bankable.

Fine art, particularly contemporary art, has attracted increasing attention from investors, and with good reason. The asset class has a low correlation with traditional financial assets like stocks and bonds, which is what makes it useful for diversification. It also brings a blend of cultural and personal value that a financial instrument does not: satisfaction from supporting the arts, pleasure in owning and understanding the work, and a place in the arts community.

Acting on that interest is harder than having it. High-quality contemporary works by established artists carry multi-million-dollar price tags, which puts them out of reach for most investors. Expensive art is illiquid, since selling a piece takes time and resources. The market is opaque, valuation is complex, and reaching prime opportunities or verifying authenticity and provenance takes specialist expertise. The work then needs storage, care and security.

An issuer acquires the art portfolio and creates a security backed by it. Shares in that security are then sold on to clients.

• Liquidity. Investors buy or sell shares in the security far more readily than an individual artwork changes hands.
• Access. Pooling resources opens the high-end market, getting past the cost barrier a single investor faces alone.
• Expertise. Asset managers engage art experts to guide selection and management, confirm authenticity and manage the works.
• Minimal issuer risk. The security is backed by the artworks themselves.
• A product you shape. Investment strategy and terms adapt to client needs and market dynamics.