The benefits of art investing

Alternative investments are tipped to outperform conventional financial offerings this year, leading to a rapid rise in the number of indexes based on art, as well as increasing interest from fund managers. Randall Willette, managing director at Fine Art Wealth Management, reviews the landscape

Recent surveys suggest that fund managers are building up their positions in alternative assets in the belief that these investments will outperform conventional financial market assets in 2010. Equally importantly, investors are emphasising diversification, as even institutional assets shift from the traditional to alternatives.

Art has emerged as a ‘real asset’ and a new alternative strategy for investors looking to increase the ratio of non-correlated instruments in their portfolios, and the