Masterworks Investor Update

Art Outperforms During High Inflation Inflation is a Key Risk to Portfolio Returns in 2021 0 . 25.0% 20.0% 15.0% 10.0% 5.0% As the Fed remains committed to low interest rates, investors are preparing for the possibility of higher inflation in 2021 0.0% Contemporary art has demonstrated strong real returns in high inflation periods, and appears. well positioned for a "lower for longer" real rate environment Contemporary Art vs. Selected Assets - High Inflation (2) Average real return for periods during which inflation was equal to or higher than 3.0% 23.2% THE DATA INCLUDED HEREIN REFLECTS CHARACTERISTICS OF THE MARKET FOR PHYSICAL ARTWORK AND NOT FOR INVESTMENT SECURITIES Contemporary Art 12.6% Contemporary Art Real Returns in High Inflation Periods (¹) Based on repeat-sales from 1985 to 2020 60.0% 40.0% 20.0% 0.0% 5.0% REITS 4.4% 31.7% Average Real Retur Higher inflation corresponds to higher real returns in Contemporary Art 2.5% 1987-1991 3.8% 3.2% S&P 500 23.4% 2004-2008 Average Inflation 1986-2020 0.2% Emerging Market Equities Source: Internal Masterworks analyale. FRED (St. Loula Federal Reserve). MSCI Database. Yahoo Finance. BLS (Bureau of Labor Statistics). Index shown through 2020. Index data updated as of December 31st, 2020. Notes: There are significant differences between the asset classes presented. For additional Information, see Important Diaclosures. 1. Gold 6.0% 4.0% 2.0% 0.0% Reflects the two highest 5-year average Inflation rates since 1885. Based on repeat-sales from 1985 to 2020 THIS PRESENTATION IS CREATED AND USED BY MASTERWORKS AND IS NOT PROVIDED BY OR USED IN SOLICITATIONS BY A BROKERAGE FIRM OR BROKER. PLEASE SEE MASTERWORKS IMPORTANT DISCLOSURE INFORMATION SECTION OF THIS PRESENTATION 12 INDICES ARE UNMANAGED AN INVESTOR CANNOT INVEST DIRECTLY IN AN INDEX INDICES ARE USED FOR COMPARATIVE MODELLING PURPOSES ONLY THE TIMING OF TRANSACTIONS RELATING TO AN ASSET OR PORTFOLIO, ADVISORY, AND TRANSACTION FEES, AND OTHER MANAGEMENT ACTIVITIES CAN CREATE SIGNIFICANT DIFFERENCES BETWEEN THE PERFORMANCE OF AN INDEX AND AN INVESTMENT SEEKING SIMILAR OR SUPERIOR RELATIVE PERFORMANCE RESULTS

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