Fractional art investment breaks down these barriers and gives investors access to an asset with prestigious history and huge potential.
To get a sense of this and the evolution of investors’ portfolios, Mintus conducted a survey of wealthy investors from the US, UK, and UAE. The results illustrate the diversity of modern portfolios and the important role of alternatives, like art.
In today’s landscape, investors are looking beyond traditional asset classes and allocations. Against a backdrop of the conventional equity/bond portfolio suffering its worst year on record in 20221 and inflation reducing gains, the pre-existing surge into alternative assets has compounded.
Based on our survey, the average wealthy investor portfolio now contains upwards of 50% alternatives2, and one of the fastest growing allocations is art. The typical investor had an average of 6.1 asset classes in their portfolios, including an average of 3.6 alternative assets. The wealthiest investors (with portfolios over $5mn) had the greatest exposure to alternative asset classes, with an average of 5 alternative asset classes accounting for 58% of portfolio value.
42% of wealthy investors surveyed already invest in art, accounting for an average of 5.9% of portfolio value. The survey results also showed a correlation with wealth – 79.5% of the wealthiest investors have art in their portfolio, compared to 19.4% of those with $1m-$2m in assets.
Investors cited interest and a desire to diversify their portfolios as the main reason for investing in art, which is consistent with what our investors tell us:
“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.”
– Mark Bedford, experienced investor and Mintus client
Those surveyed by Mintus that currently invest in fractional art cite the attractive returns and advice from their professional advisor as key factors in their decision. By lowering the barriers to entry significantly and offering curated investment options, fractional art is staking its claim within investors’ portfolios as a hedge against inflation with strong returns. That’s why although relatively new, the fractional art market is growing rapidly with annual investment boosting to +$150m in 20223.
Undoubtedly, like the Medicis, these five examples of buying, collecting, and gifting art to be enjoyed by others is a potent demonstration of success and of taste; their art investments providing a constant dividend of cachet and, as auction performances show, significant financial return.
Wealthy investors identified art as the second most popular alternative investment to pursue in the next twelve months, ahead of Private Equity, Venture Capital Funds, and Wine & Spirits. This positive sentiment is strongest among 30–44-year-olds, also showing the sustainability of this asset class as the investor base matures.
This outlook is supported by ArtTactic’s most recent Global Art Market report, which found 84% of art market participants viewed the outlook for 2023 as equal or better than 2022. Within the blue-chip (+$1m artworks) bracket, the sentiment is even stronger with 92% having confidence in the market maintaining or improving on its current trajectory4.
We welcome any owner who wants to unlock liquidity from their collections to contact our Fine Art Team. This includes individual investors, galleries, institutions, and artists. Please reach out if you're interested in listing your artwork on the Mintus platform.
All artwork offered by Mintus is stored in climate-controlled, specialist art storage facilities, under a Mintus account. Current paintings are held in a facility in Delaware.
Artwork is acquired through our unique relationships with the world’s most renowned collectors and galleries. Our Fine Art Team marries their own expertise with insights from fellow industry experts to identify one-of-a-kind investment opportunities from established artists with high-growth potential. Our team examines metrics such as the artist’s market track record, recent price velocity and momentum, and the size of their international collector base when making investment decisions.
If you need support you can send an email to firstname.lastname@example.org or schedule a call using the links on each page of our website. If you need to make a complaint you can write to email@example.com. A description of our complaints policy is set out in the Investment Terms & Conditions for each investment.
Mintus Trading Limited is authorised and regulated by the Financial Conduct Authority in the United Kingdom under firm reference number 942522. For more details on our regulatory permissions please see the Financial Services Register.
For more information on risks, see the Memorandum for the relevant artwork and the important disclosures.
Mintus does not sell NFTs. NFTs are digital assets. Mintus enables qualifying investors to participate in the art market by purchasing interests in high value, physical artworks. Mintus’ platform facilitates investment in real, iconic artworks created by established artists.
Mintus will introduce a Secondary Market for investors in permitted locations, which will facilitate selling of shares to buyers, dependant on demand.
According to the regulations, certain investments can only be made available to investors who fall within these categories and Mintus must also follow appropriateness requirements when registering investors.
Fees are dependent on the specific artwork and the specific structure of the investment opportunity. Fees are clearly shown in advance for each artwork / investment opportunity, as displayed in the Memorandum that relates to the artwork / investment opportunity; this document is available to download from the profile of each artwork under the Opportunities section.
Both individual investors and institutions can invest in artworks. Individual investors will need to declare themselves to be ‘high net worth individuals’, ‘sophisticated investors’ or 'accredited investors' during the account creation process. Individual investors will also need to pass an appropriateness assessment. Professional investors including wealth managers, private banks and family offices should contact our team for more information on investing as an entity or managing multiple client accounts on the platform.
For the opportunities listed, a minimum investment of $3,000 is required however investments can be for any amount above this and generally range from $15,000 to $100,000. International payments are accepted.
Funds can be sent from any denomination into our USD bank account. We will show you the estimated cost in your chosen currency during the investment process, however this may change at the point of transfer, and does not account for fees charged by your bank. When transferring, your bank may show an estimated conversion; alternatively the funds can be sent in your local currency and converted at the point of receipt. Other transfer services such as Wise display exact fee and currency conversion rates to ensure you're sending the subscribed amount.
Mintus does not provide tax advice. We recommend that investors obtain their own tax advice as every person has specific tax circumstances. Generally, income and profits generated from your investment can be subject to either income tax or capital gains tax (depending on the individual investor and the specific structure of the investment). Artworks are not income-generating during the period they’re held. If you are unsure about your tax or other legal requirements, please speak to a professional advisor.
Not directly. In order to take an investment from one artwork to another, shares would need to be sold to a willing buyer on the future Mintus Secondary Market and then proceeds reinvested on the platform. The Secondary Market will only be available in permitted locations.
Typically, valuations occur at the end of June and December, with reports distributed to investors as soon as possible thereafter.
All actions in relation to the asset are at the discretion of Mintus. Mintus will communicate with investors on a six-monthly basis with an update on the net asset value, and any further news will be communicated on an ad-hoc basis.
Distributable profits will be made available to investors as soon as possible, once all sale-related administration is complete.
Profits will be received into your Mintus wallet, with the option to withdraw the profits into a bank account or reinvest on the Mintus platform.