Collectibles are not necessarily the kind of assets that financial advisors focus on but they may be the gateway to developing closer relationships with clients.
Approximately 25% of wealthy investors consider themselves collectors and, on average, they estimate that their collections represent on 10% of their total wealth, according to a new UBS Investor Watch report.
Among the valuables they collect are gold and coins, fine art, precious jewelry, stamps, autos and antiques — whatever their passion. Profit is not the motivation, but the collections are assets that have value.
Collectors, however, don’t treat them as valuable investments, says Sameer Aurora, the head of client strategy at UBS Wealth Management Americas and the lead researcher of the report, called For Love, Not Money. “Four-fifths would rather sell assets in their investment portfolio instead of parting with a piece in their collection” if they needed the money, says Aurora.
This emotional attachment can help advisors strengthen and deepen their relationships with clients.
“As the industry evolves … and advisors engage with clients to form a complete financial picture, some of these nontraditional assets start to come into sharper focus,” says Aurora. “They represent an opportunity for advisors to engage with clients.”
And many clients could use their advice.