The insightful report states how art investment has precedents for several renowned institutions. For example, from the 1970s until the 1990s, the British Rail Pension Fund got 11% annualized returns on precious art assets. However, a majority of today’s art funds have fewer institutional investors.
London based Philip Hoffman’s Fine fund set up in 2001 is among the world’s largest asset manager in fine art. It considers the condition of the artwork, its freshness to market, and the track record of the artist among other key factors before a BUY decision is made. In the six years of active money and asset management, its average annualized return is 34%. The firm unveiled Fine Art Fund III earlier this year. It focuses on possessing blue-chip art, following the same buy and hold strategy as the original fund. The find manager states:
“We are overtly careful in how we invest, especially since some of our investors are pension funds. Our purchases are strategically planned and backed by detailed research and a due-diligence process.”The efinancialnews report states that the Hoffman is confident of stronger emerging markets to keep the art market in a buoyant state. He said:
“The auction rooms are full. Numerous bids are being made, new collectors are being found and works of excellent quality are being offered for sale at reasonable prices.”Harvey Cammell of Bonhams concurs to add that Chinese art will be of the strongest markets. The auction house has already had some of its strongest Chinese sales, with exquisite works of art selling, far in excess of estimated prices. Apart from art, other exquisite asset classes like jewels and jewelry are also shining.
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