PRIVATE ART FUNDS : what
is it
Art funds are private investment funds
to the generate returns through the acquisition of art.
Art funds utilize the “buy and hold” strategy. Buy and Hold investment strategy
is a strategy in which the investors keeps the art for a +/- long period of
time, regardless of the market orientations.
Art funds may differ in size, focus, duration, etc
Art investments are based on the art market values, legally the art funds are
not submitted to any regulation which will be explained later.
Private art funds are made for people who want to own a part of an important
painting, by example a 1 Million $ Picasso artwork. They don't have the 1 M $
but will own 10% up to even 100 % of the painting, depending on the invested
amount but without having the hassle for the storing of the painting,
insuring the painting, etc All this being done by the private art funds manager.
Shares start at a minimum of $ 200,000.00.
PRIVATE ART FUNDS : regulations
Art funds are subject to law and
regulation.
To avoid being labeled as an investment company, the art funds funds will have
less than 100 investors in the fund of funds. The art funds fund will not have
to follow the investment regulations ( SEC ) if this is respected
Please visit
http://artfundassociation.com/_what_are_art_funds/basic_af.html to see
all the rules and regulations.
PRIVATE ART FUNDS : how it works
The funds are
managed by a professional in the art
business, with experience on buying and selling fine art at the highest level.
It is the role of this manager - advisor to submit to the investors, fine art
that is subject to increase in value over the years ( usually the investments
are made for 5 years ). The art work in this time frame of the 5 years may be
sold or put up for a loan to a museum, or a corporation by example,
may be exchanged with other art works etc, all
this of course under the strict survey of the different share holders of the
art work.
Usually art increases in value with a minimum of 10 % yearly, of course
the advisor- manager has to be the right person to exercise the choice of art,
experience is primordial in this domain. You
will not be a manager of a private art funds after ending an art class or
becoming an A.S.A. etc appraiser. It requires a lot of experience and a well filled
address book of merchants, dealers, experts, curators, wealthy potential
investors etc.
A manager needs to have a vision and knowledge of fine art to be able to predict
what will be a good investment.
Art works are owned by one or multiple investors. So it is possible to own a
1/10 of a 5 Million $ painting.
PRIVATE ART FUNDS : what a good manager
does for the investors
He hunts for artworks online, auctions,
galleries, private collectors. When he finds an interesting work of art, he
believes it could be a good investment for an investor, he has to verify:
1/ the value of the art work if it was sold in auction. Artprice etc are
databases for the auction results. He will deduct 20 to 25 % of the mentioned
value in the data, since the seller will have to pay this % to the auction
house.
He needs to buy at least 25 % below the auction price
2/ the authenticity of the art, and has to request a C.O.A. from the sole
recognized authenticator
A good manager will take advantage of all the possibilities to pay the lowest
possible price, especially if he buys it from private source. In online auctions
it's very rare to find an item at a very good price. Dealers and merchants look
at the auctions every day, sometimes one can find a good opportunity in a small
auction house with few or no visibility online.
Private sellers and collectors are definitely the best places to buy an item, of
course Steve Wynn, and collectors of that caliber will be out of price.
Galleries are taking a profit of minimum 50 % on the market value, which leaves
no room before many years to make a substantial profit.
Merchants, galleries and professionals make their profit not at the sale, but at
the purchase price: " Higher you buy, less profit you will make."
A good manager with a vision, knowledge and experience will make a profit
for his clients, sometimes up to 50/60 %, in one year... but always
minimum 10 % a year.
OUR SERVICES
: for collectors and investors in art funds
We offer
1- Advise on how to
build a fine art collection, in partnership with other collectors investors
2- How to maintain an art collection, at low cost,
through a manager
3- Close collaboration with the collector for
investments in fine art, at every level of the market
4- Assistance to buy fine art in auctions, from private
owners, and dealers in the USA and worldwide
INVESTMENTS IN FINE ART: reviews
Continue to read on website;
http://www2.deloitte.com/lu/en/pages/art-finance/articles/art-finance-report.html#.VCVAUhYZUsB
What
is behind the art investment boom ?
Read website :
https://news.artnet.com/market/what-is-behind-the-art-investment-boom-113619
Bloomberg-business article
about Investing in fine art
Billionaires investing in Fine Art at Basel Art ...
http://www.bloomberg.com/news/articles/2014-06-20/billionaires-at-basel-bet-art-better-investment-than-cash
CONTACT US
VWART.COM
DISCLAIMER:
This information page about art funds can be modified and expanded any time.
it is provided for informational purposes only.
This is not an offer to sell art
funds.
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