Could alternative investments put the passion in your portfolio?

Investing your money can yield exciting results, but sometimes it can feel a little dull to have everything tied up in shares and bonds. That’s why many investors look to diversify their portfolio by making alternative investments. Whether it’s classic cars, art, wine or films, making a hobby out of your investment can be great fun. Who doesn’t want to make a good return while being part of something they love?

Luckily for our clients, the team at Moyes Investments are perfectly poised to help explore which alternative investments will be right for you. As one of the few discretionary fund managers (DFM) in the region, Moyes Investments will monitor your investments, spot new opportunities and try to ensure you are in the right place at the right time. So with the minimum amount of effort on your part, Moyes can identify and deliver exciting alternative investment opportunities for you and make sure your portfolio is working as at its optimum.

But before you start your journey into the world of alternative investments, let’s look at some of the key areas where these interesting opportunities lay.

Art and photography

It will come as no surprise to you that having a classic Caravaggio hanging on your living room wall is likely to pay off. Who wouldn’t want an incredible piece of art to admire for years, knowing that it could provide a good return when the time comes to sell? Interestingly, though, fine art has lost its appeal for the world’s billionaires according to Coutts, who’ve just released the 2017 edition of the Coutts Index. They report that fine art prices are down by 6.2%. Instead, the wealth management company says that photography is the category showing serious growth among their customers, so it might be worth buying a Testino instead of a Titian.

Classic cars

Many people dream of a garage full of incredible classic cars, and if that can be a reality for you it’s a sound investment. Although Coutts reported that the classic car market fell by 10.4% last year, the appetite for the very best cars remains voracious. In fact, investors in the most coveted marques are likely to see a good return because the top ten classic cars continue to rise in value. So, if you fancy putting your money in classic Ferraris, Aston Martins or a Mercedes 300 SL, you can be confident that history suggests you’ve taken the right turn.

Film

If you’ve always secretly longed to be the next Spielberg, you can get a slice of film industry action by investing. The way we consume movies has changed dramatically since the golden age of Hollywood, and with pay-per-view, downloads, DVD and Blu Ray, and streaming services offering plenty of opportunities for revenue once the cinema box office has closed. As an example by investing in a film or production company disposal relief, where shares in a SEIS company are disposed of after having been held for 3 years and certain criteria are met, could be a benefit for some people. Who knows, you could be lucky enough to invest in a break out indie hit that sweeps the Oscars! The main thing to consider is getting the right advice before you buy the outfit for the film’s premiere. To assist with this, Moyes will escort you on a fact finding journey to London to visit a Film Studio and explore all the opportunities and options first hand.

Musical instruments

What’s fascinating about the 2017 Coutts Index is that rare musical instruments topped the table after seeing a growth of 16.4% in 2016. They warn that, despite this stellar performance, this is an area of alternative investment that has been historically volatile, and hasn’t enjoyed a notable increase over the last decade. That said, for those investors with a passion for strings, the experts say that violins are a stable bet as they’ve continued to perform well, despite the economic downturn. Be careful when considering the guitar market. You might thoroughly enjoy rocking out on a Fender, but thoroughly check the instrument before you buy as the key to a classic guitar’s value is in how close to the original condition it is.

Wine

One of the big problems with collecting wine is resisting the urge to drink it, but for strong souls who can leave the cork in, the market is healthy according to Coutts. After taking a serious downturn after their 2011 peak, the fine wine market has recovered and last year the average price had risen by 10%. For those interested in buying fine wine, it’s wise to look at it as a minimum investment of five years and buy the very best wine you can afford. Expert advice suggests that buying wine with a strong record is key although it doesn’t always guarantee a better return. However, It should provide a strong secondary market for when you wish to sell.

If you would like to find out more adding alternative investments to your portfolio, get in touch on 01638 429975 or email [email protected]. Our team has the knowledge, the experience and the passion to guide you.