Professional financial advisors, institutional investors and private investors have come to appreciate art as a real asset.
Art and collectible assets can represent sizable assets for many HNWIs & UHNWIs. Art proves to have longevity and substance as an alternative asset class. There has been a growing interest in art related services among the financial community and an increasing focus on portfolio diversification from clients.
These developments show that there is a significant opportunity to integrate the concept of collectible assets in wealth management. Services such as asset allocation strategy, liquidity optimisation, manage over-exposure to risk, develop appropriate reporting, optimize taxation or organise appropriate transmission to heirs / effective tax and inheritance planning for collections or gifting or donation to charity are examples of services that can be integrated in an extended wealth management service offering.
Deloitte Luxembourg is actively involved to support the set-up of an Art and Finance cluster in Luxembourg. One milestone project is the planned Luxembourg Freeport facilities, which will be used to keep for an unlimited period of time high-value objects – fine wine, art, jewellery - in duty-free and tax-free warehouses providing state-of-the-art security.
It will consist of an innovative, environment-friendly, low-energy facility of around 25,000 m2, to be built within the Luxembourg airport area. The facility will be operated by specialised, duly licensed agents, with expertise in the handling and forwarding of valuable goods. The Luxembourg Freeport is expected to open for business in Q3 2014.