NEW YORK, NY / ACCESSWIRE / May 23, 2023 / If you keep all of your retirement money in traditional assets like stocks and bonds, you could be leaving tons of money on the table, according to art investment platform Masterworks.
A recent study1 out of Goldman Sachs shows investing in alternatives and real assets like private equity, real estate and even art could boost your returns and reduce your risk over the long term. In fact, they advise their clients to allocate up to 30% to these assets. They're not the only major investment firm recommending higher allocations in alternatives.
BlackRock, the world's largest asset manager with $10 trillion in assets, advises their clients to put up to 20%2 into alternatives. CalPERS, the California Public Employees' Retirement System, one of the country's largest pension systems, allocates 30%3 to alternatives. Yale University's endowment fund, with $41 billion in assets, invests 60%4 in alternatives.
According to UBS, some of the most seasoned investors are bullish on one alternative asset in 2023. It's not commodities, real estate, or gold. It's a $1.7 trillion asset class - ART.
Larry Fink, the CEO of Blackrock, recently poured tens of millions into art, calling it "one of his favorite stores of international wealth." Ken Griffin, the CEO of Citadel, a high-performing hedge fund, invested close to $500 million of his personal money into fine art in just a few months.
Masterworks looks to help everyday investors have a chance to access this exclusive market.
Continued growth during volatile markets
Masterworks has made it their mission to make art more investable. They use their industry leading database to find artworks with, what they believe, have high price momentum; then they buy them, store them, and slice them up into shares they can invest in for a fraction of the price it would take to buy the entire painting. Art has one of the lowest correlation to equities of any alternative asset, according to Citi.
In 2022, when the falling stock market was experiencing heavy volatility, Masterworks reported netting their investors $25.8 million in total returns. This year, the company reports delivering a 15.4% net return in 36 days on their latest exit.
Although this kind of return in such a short time might not be typical, the company adds new paintings every week from artists like Banksy, whose record price at auction* for his works saw an average growth of 67.1% per year over the last 15 years.
Ready to invest like a Billionaire?
Masterworks is unlocking an asset class that was once only available to the ultra rich, and they're inviting readers to open a free, no-obligation account. From there, readers can see what artworks are available, and find ones that could fit their financial goals.
Learn more about Masterworks here.
*A "record price" reflects the highest hammer price (excluding auction house buyer's premium) achieved at a public auction for any artwork by a particular artist. The art market considers the progression of record hammer prices to be an indication of an artist's market momentum and growth rate.
Sources:
1https://www.goldmansachs.com/insights/pages/how-to-overhaul-tried-and-tested-investment-portfolio-when-inflation-soars.html
2https://www.aljazeera.com/economy/2022/1/14/blackrock-hits-a-record-10-trillion-assets-under-management
3https://www.calpers.ca.gov/docs/perf-monthly-update.pdf
4https://yaledailynews.com/blog/2022/10/24/yales-endowment-explained/
Contact:
Gabriel Zinn
[email protected]
SOURCE: Masterworks Administrative Services, LLC