Is wealth a number or a lifestyle?
It can be both, of course.
Faced with the challenges of intra-generational wealth transfer perhaps you’ve come to the conclusion that your children would be better if largely left to fend for themselves. Or perhaps you’re not keen on allowing HMRC too big a slice of your estate. Or simply that having accumulated wealth you feel that you deserve to enjoy it. How can Artorius help?
We believe in partnership, within the business and with the best of third parties. We have identified specialists in various fields who can help you to enjoy your wealth while avoiding the pitfalls that abound in complex and opaque asset markets. Some offer our clients preferential terms and perks but all are trustworthy experts within their specialisation – we have selected them because they share our values of independence and integrity.
ENJOYING YOUR WEALTH
Is your collection fully catalogued
and up to date with current market values?...
...is this information available to you on-line? Does your insurance policy reflect current valuations? Are you with the most competitive insurer for works of art? Might you be willing to lend to exhibitions, bearing in mind that this may lift the profile of your works in terms of future sale value? How comfortable are you in navigating the increasingly murky world of dealers and auction houses?
We work with a team that combines academic and commercial experience and with strong relationships with dealers, auction houses and museums. If you are interested in expanding your collection or simply maintaining it properly you would almost certainly benefit from their help. They – like us – pride themselves on their independence and integrity, while giving their clients discrete access to their extensive network within the art world.
‘The classic car is the investment star’ was the headline in a recent Financial Times (Daniel Pembrey, 8 April 2016). Pembrey remembers having admired a rare Aston Martin, for sale at £500,000 in 1996. Shortly after seeing it he sold his Clapham flat for £200,000 and moved to the USA. How have prices moved since? For reference, the FTSE 100, in terms of total returns, has roughly tripled. The flat he estimates will have increased five-fold, ignoring the stream of rental income over twenty years.
The car – based on the recent sale of one of the only 18 other examples that were made, for USD 14.3mm – would have returned about twenty times the 1996 cost. Yes, you should knock off the auction fees, but bear in mind too that classic cars enjoy exemption from UK Capital Gains Tax.
This would be an opportune moment to remind you that historical returns are no guide to the future. But also that – in cars as with other opaque and illiquid markets – it pays to have expert, independent advice.
It would however be a crime to view vintage and classic cars as little more than an asset class. At Artorius we believe that old cars are there to be used and get better with age, a bit like our client partners. Your car can unlock a whole world of adventure, friendship and general contacts and we can help you explore this. Many of the Artorius team have a life long interest in the classic car scene and a great deal of experience. We have some fabulous contacts which we will be happy to share with you.
Photo by: Blue Passion Photo
With an extensive network across the world they can help most things happen in most places
Perhaps you need help maintaining your diary, or paying bills, or managing properties. Perhaps it would be good to be able to get tickets to Adele at the O2; or the table in that fashionable restaurant that you’d promised to book weeks ago and had subsequently forgotten about. Maybe you can handle all of these things in London but would like to have someone smooth your path for that special trip to New York.
We have partnered with one of the top global Concierge services, allowing complimentary membership for clients of Artorius. You will have a personal contact within their team, on call to make your life a little easier. With an extensive network across the world they can help most things happen in most places. It may just be one of those things that you didn’t know you needed until you had it…
An almost certainly apocryphal story is told about a successful hedge fund manager whose teenage daughter said she had a very special request for their impending Christmas holiday. It was with trepidation that he responded as – like many of our clients – he worried about the potential for wealth to damage his children (so a hedge fund manager, but a hedge fund manager with a heart and a conscience: I did say it was probably not true…) Excitedly, his daughter detailed her wish: ‘Daddy, please darling Daddy – can we fly commercial, just this once…?
Private flying is probably habit-forming: the famously frugal Warren Buffett has strayed on this issue, buying a jet while naming it ‘The Indefensible’. According to Forbes magazine he subsequently renamed it ‘The Indispensable’ and of course later went on to acquire NetJets, through Berkshire Hathaway. It’s a slippery slope.’
The one certainty about flying (apart from the wisdom of avoiding investing in airlines) is that unit growth in aviation has been positive, year-in and year-out. This – coupled with increasing security standards at airports – has meant that the stress and wasted time associated with air travel has grown at least commensurately. Given capacity constraints in infrastructure this will in future only get worse. So if you can afford to consider the alternative – for business or for the family, as a rule or as an occasional exception – we can help you weigh up the options. You don’t have to buy the plane and we can explore anything from fractional ownership to individual charters. You may find it indispensable
ENJOYING YOUR WEALTH
@Copyright Artorius Wealth 2016