Specialised Investments Simplified. June Edition

As a paraplanner here at We Complement, I’m always looking at how real-life passions show up in financial plans. Over the past few months, I’ve had more than a few conversations about art – not in a museum sense, but as a genuine investment consideration. Whether it’s a client asking about owning a painting outright, or exploring fractional platforms, it’s clear that art is becoming more than just a ‘nice to have’ on the wall.

So this month, I’ve pulled together the key things planners should know when this topic comes up, because as with any specialised investment, the detail matters.

Art as an Investment: Pastime or Portfolio Play?

The Upside: Why Clients Are Drawn to Art

– It’s tangible and meaningful. Unlike a unit price on a platform, a painting is something clients can see, enjoy, and connect with, often for years.

– Potential for growth. While speculative, some emerging artists or trending movements do appreciate significantly over time.

– Diversification benefits. Art doesn’t track the stock market, so it can offer a hedge during volatility or inflation spikes.

– Legacy appeal. For some clients, it’s not about returns, it’s about passing on something culturally or emotionally valuable.

– New ways in. Platforms now allow fractional ownership, curated digital collections, and simplified access. No galleries or auction houses required.

The Caution Flags: What Planners Should Consider

– It’s not liquid. Selling art is rarely quick or easy. Clients need to be in it for the long game.

– Valuing art isn’t straightforward. There are no balance sheets or earnings reports, just market trends, expert opinions, and what someone is willing to pay on the day. Costs add up. Storage, insurance, restoration, and transaction fees can bite into gains.

– Authentication matters. Provenance and condition are everything. A lack of due diligence can lead to expensive lessons.

– Trends change. Today’s darling can be tomorrow’s forgotten name. The art world moves fast, and not always predictably.

What to Keep in Mind as a Planner

– It’s often a passion play. For many clients, art ownership is about enjoyment and legacy – not just returns. Help them frame expectations accordingly.

– Tax treatment differs. Capital gains rules for art don’t align neatly with standard investment products – make sure clients understand the implications.

– Due diligence is critical. If a client is serious about entering the art market, connect them with trusted specialists or platforms that prioritise transparency and authentication.

Summary

Art can be a genuinely enriching (and sometimes lucrative) addition to a client’s broader portfolio, but it’s not for everyone. Approach it as you would with any alternative investment: with curiosity, caution, and context.