For decades, portfolio construction was based on a simple formula: invest in equities, add bonds and rely on their diversification effect. For a long time, this model proved its worth. Today, it is increasingly being called into question, with real assets taking on greater importance in the current environment. Here, Andy Jenk details the three structural developments behind this growing interest.
Splint Invest is organising a webinar on this subject on 6 May 2026.
Persistent inflation, geopolitical fragmentation and changing correlations between traditional asset classes are forcing asset managers to rethink diversification. Against this backdrop, real assets - such as art, collectors' items, wine, watches and rare luxury goods - are gaining in strategic importance within portfolios.
This is not a new phenomenon. Ultra-high-net-worth individuals (UHNWIs) and family offices have been investing in these assets for decades. What is changing today is the professionalisation, institutionalisation and, to some extent, democratisation of access to these markets.
Inflationary risk and scarcity
Traditional financial assets are based on future cash flows, the value of which is highly dependent on discount rates, monetary policy and interest rates.
Real assets, on the other hand, follow a different logic. They are rare physical assets with limited supply, whose value is often sustained by collector demand and their cultural dimension. In inflationary times, this scarcity can preserve value in a way that financial assets do not always guarantee.
The supply of a work of art, a limited series of watches or a vintage of wine is, by definition, fixed - creating a structural scarcity that can sustain prices over the long term.
Geopolitical fragmentation
Geopolitical tensions tend to undermine confidence in financial systems, currencies and legal frameworks.
Historically, the holding of globally sought-after physical assets has been a means of wealth preservation. Major works of art, rare collectors' items or luxury investment goods act as international stores of value, independent of any specific financial system.
This characteristic makes them particularly attractive in globalised portfolios.
Evolution of correlations
For a long time, bonds were the main buffer against equity market volatility.
However, recent years have shown that these two asset classes can simultaneously decline, particularly in the event of inflationary shocks. This dynamic calls into question the effectiveness of the traditional 60/40 portfolio model.
Against this backdrop, managers are looking for new sources of diversification - and real assets are gradually emerging as an alternative.
Integrating collection assets into portfolios
A common misconception is that art and collectables are investments of passion. From an institutional point of view, they should be approached as investments comparable to private equity applied to individual assets, with the same level of analytical rigour.
Three pillars are essential to their professional integration.
- Disciplined allocation
In the majority of institutional portfolios, real assets represent a limited but strategic allocation, generally between 1% and 5%. The objective is not speculation, but diversification through performance drivers distinct from those of the financial markets.
- Selection and due diligence
Success in collection markets depends heavily on the quality of the acquisition and the rigour of the analysis. A professional approach is based on :
- data-driven market analysis
- exploitation of transactional and auction databases
- assessment of scarcity and production constraints
- clearly defined investment horizons (often between 12 and 36 months)
- anticipated exit strategies (auctions, dealers, collectors)
- Institutional structure
One of the main historical obstacles was the lack of appropriate investment structures. Professional integration requires :
- regulated vehicles
- ISIN compatibility
- integration of custodians
- institutional reporting standards
These elements help to transform historically fragmented markets into structured, investable asset classes.
The specific features of real assets
Like all asset classes, real assets have their own special characteristics. Their liquidity is event-driven rather than continuous. Their valuation requires specific expertise. And access to them has long been fragmented.
It is precisely on these points that a transformation is now taking place: professionalisation, increased access to data and regulated structuring are making these markets increasingly accessible to institutional investors.
A new dimension of diversification
As the macroeconomic environment evolves, portfolio construction must adapt.
Real assets are not intended to replace traditional investments. They do, however, offer an additional layer of diversification, based on different market dynamics.
For asset managers, the question is no longer whether to include these assets - but how to access them in a structured and institutional way.
Deep Dive
For managers wishing to delve deeper into the subject, a more detailed analysis of valuation methodologies, investment structures and portfolio integration is required.
These issues will be the focus of our webinar on 6 May 2026.
Interested parties can also request the factsheet for the fund launched by Splint Invest or get in touch directly via: andy.jenk@splintinvest.com or aif.splintinvest.com.