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Alternative Assets

Alternative assets are investment options outside of traditional stocks, bonds and cash. They cover a wide range of investments with unique characteristics. Some of the more common types include:

Commodities

Collectibles

Real Estate

Infrastructure

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Private Equity

Structured Products

Hedge Funds

Private Debt

Crypto

Traditional Assets

Liquid

Numerous and passive owners

Open to public and institutions

Highly regulated

Extremely correlated to market

Low minimum investment

Low transaction costs

Extensive historical data

Largely illiquid

Owners actively growing value

Less regulated

Low correlation to public markets

Higher minimum Investment

Higher transaction costs

Limited historical data

Alternative Assets

Accredited investors & institutions

The Difference

Alternative investments are one of the most dynamic asset classes, offering the ability to secure superior returns and portfolio diversification. Key differences between traditional and alternative investments include:

With emerging investment structures and new technologies, such as blockchain and NFTs, alternative assets are becoming increasingly accessible to smaller investors.

Potential barriers in relation to liquidity, minimum investment amounts and transaction costs are being overcome. In particular, this has positively affected the market for collectibles.

Collectibles - Returns

Argyle Pink Diamonds

Artprice 100

Rare Whisky Apex 1000

K500 (Classic Cars)

Liv-ex 1000 (Wine)

S&P 500

Collectibles have become a popular investment option thanks to their unique appeal and potential for significant returns. The collectibles market size was estimated at US$458 billion in 2022 and is projected to cross US$1 trillion by 2033, growing at a CAGR of 6.2% (Source: Market Decipher).

Over the past two decades, many collectibles have achieved better returns than traditional investments. To enable investors to monitor trends, the performance of many collectibles categories are now captured via specific indices, such as outlined below.

CAGR:

Argyle Pink Diamonds

9.24%

Fine Artwork

8.89%

Artprice 100

Rare Whisky

15.62%

RW Apex 1000

Classic Cars

7.06%

K500