The financial landscape continues to evolve in an ever-changing environment. When it comes to wealth management, the demands of clients are continuing to increase, especially when they want to diversify their portfolio and implement innovative investment strategies. As part of this, unconventional assets such as collectibles and fractional ownership of high-value assets are also being brought into the conversation.
In this article, we will be discussing how you can implement specific strategies while focusing on meta assets, high-value assets and more.
Staying informed in the market
One of the best ways to ensure that your wealth management strategy works is to stay informed about what’s happening in the market. For example, wealth managers should ensure that their knowledge is up to date and relative to the market, especially when it’s evolving quickly. To stay in the know, you can attend industry conferences and professional development courses and regularly check out industry publications such as the Wall Street Journal and the Financial Times.
Another thing to put into practice is leveraging technology and data analytics. This will be excellent information for when you can help wealth managers stay in the loop about what’s going on in the market. As the old saying goes, the numbers don’t lie. Wealth management professionals such as Chuck Roberts of Stifel, Nicolaus & Company utilize technology and data analytics to make the best-informed decisions.
In this age, artificial intelligence (AI) and machine learning (ML) are employed to analyze market trends while predicting future movements. Wealth managers could use this technology to identify and evaluate investment opportunities featuring unconventional assets.
Integrating unconventional assets into wealth management
Unconventional assets can be included as part of your wealth management strategy. This could be something that you may be planning to implement. For example, you may be looking at collectibles such as art, antiques or rare coins, as they have been considered excellent investments as part of your portfolio diversification. These assets can provide significant returns depending on several factors such as the condition, the rarity of the asset, age and more. Partnering with appraisers and specialists in art, coins and other collectibles will make it critical to ensure an accurate valuation and risk assessment.
Fractional ownership of the highest-value assets such as real estate, luxury yachts and private jets may be available to those without more capital outlay. This system will democratize access to these assets and allow investors to diversify their portfolios while being rewarded with income generation as these assets can be rented out for use. Still, wealth managers must conduct due diligence to offer fractional ownership to their clients while ensuring that they are reputable and transparent.
Wealth managers should consider the legal and regulatory aspects of fractional ownership. This way, they are designed to protect the client’s interests and optimize the outcome of their investment. However, fractional ownership may not be one of the only assets that clients could focus on when building their wealth.
We must recognize digital assets as we go through the digital age. Blockchain technology has created new investment opportunities in the form of meta-assets. Since the early 2010s, cryptocurrencies such as Bitcoin have emerged as an investable asset. Since then, it has grown into a much larger ecosystem featuring more digital coins such as Ethereum, Litecoin, Solana, etc. Not to be outdone, the emergence of nonfungible tokens or NFTs and digital real estate have also made their presence known.
Wealth managers should also ensure that they are paying attention to the regulatory landscape surrounding digital assets. This includes the technological development that could underpin them. Blockchain technology experts and wealth management professionals can collaborate to put together insights that will help clients make the best decision possible regarding digital assets. Is it a good mix with physical assets in their portfolio? This is a question where the answers may vary from one investor to another.
Final thoughts
Unconventional assets have the potential to grow a portfolio for wealth management. Wealth managers can embrace new opportunities and quickly adapt their strategies to meet their clients’ needs. Not all clients’ demands are created equal regarding their wealth goals. However, this is why wealth managers can offer collectibles, fractional ownership and meta assets as excellent options for their clients, especially when they make great promise for future returns.