Art Funds Survey 2015
If you take the Peau d l’or as the first, 2014 was the 110th anniversary of art funds. But there was no party. In June 2014, Deloitte and ArtTactic – in their words -“conservatively estimated” that there were 72 art funds in operation. Of the 72 funds it identified, some 55 were Chinese funds (and many of these were in the process of shutting down).
Deloitte and Art Tactic estimated that non-Chinese funds had $417 million of assets under management – roughly equivalent to the total sales in one top evening auction.
But whilst the total assets under management may be smaller than many predicted, investors are offered a wide range of funds targeting different art, ranging from contemporary photography to Brazilian art.
2015 Art Fund Survey
Anthea – Contemporary Art Investment Fund SICAV FIS
Anthea launched its first fund – the Anthea -Contemporary Art Investment Fund SICAV FIS – in April 2013. The fund invests in Post War and Contemporary art works including paintings, sculptures, works on paper, installations, photographs and video.
In September 2014 it held 36 works by 13 artists. It says that 35% or artists are emerging the rest established. A single piece by one established artist accounts for 18.7% of the fund and is also their highest exposure to a single artist.
The fund has returned 23.4% since launch and a 10% return in the first nine months of 2014. The fund says its best investment made a 404.3% return, with its worst investment losing 16% of its value.
Anthea is planning to launch its next fund in 2016. It will also focus on the contemporary market.
The fund invests in works from the 15th Century onwards. In September 2014 it said Old Masters account for 25%, late 19th Century and 20th Century art account for 38% (including Impressionism, Post-Impressionism, and Modern works); Modern Latin American works account for 32%, with the remaining 3% being what it calls Post-War and Contemporary Masters. It keeps 2% in cash. Artemundi likes buying small works – which it calls “small gems.”
The five year closed-end fund hopes to raise $150 million but could be expanded to $225 million. The minimum investment for individuals is $250,00 (although they can split this with others) and $1 million for institutions and family offices. There are perks for people who invest $10 million.
Based in Frankfurt, Artfonds 21 AG is a German stock corporation, which works with Artfonds 21 Künstler GbR. Its founders – Rik Reinking, an art historian and curator, and Dr Martin Bouchon, a German capital markets lawyer – have both art and finance knowledge.
It launched in December 2007 with Eu57,000. It has now raised about Eu350,000 ($440,000) from 20 investors, which is invested it in about 50 works. As well as encouraging museums and galleries to borrow pieces, Artfonds 21 lists all the work it owns. It also uses the pieces it owns to publish limited edition prints. Half of the sales of these go to the artist and the rest is used to help cover the fund’s running costs.
Art Partners is a Tel Aviv based fund specialising in Post War and contemporary art. Art Partners first fund Art Partners I launched in 2007 and by 2013 it said it had returned around 50% of the invested capital. The primary fund contained work by artists including Takashi Murakami, Rudolf Stingel and Cindy Sherman. The second fund Art Partners II, was set to launch at the end of 2013.
The BGA Private Equity Investment Fund is a five year equity fund specialising in Brazilian art. It is managed by Brasil Plural an investment management and advisory firm.
The fund says it has benefitted from increased interest – and rising values – in art.
The Collectors Fund runs two funds: the American Masters Collection I and Twentieth Century Masters Collection. Both funds specialises in contemporary art. The strapline of the fund is very simple “Aesthetic enrichment with economic advantage”.
Based in Kansas City the fund allows members of the fund to display works in their homes. It rotates works three times a year.
Malta based Day Star Fund is a regulated art fund which was incorporated in August 2012.
Started by Philip Hoffman in 2000, The Fine Art Fund Group is broken in to two parts: an advisory service and the art funds. Calling itself the “largest global art investment house of its kind” the Fine Art Fund was one of the first dedicated art funds.
The first fund was made up of 80 works by 65 different artists and the main focus was wall art with a minimum investment of $250,000. The Fine Art Fund Group runs several other funds including The Fine Art Fund II, III and IIII as well as Chinese and Middle Eastern funds.
It is planning a new fund.
The Fine Art Invest Fund is a Swiss art investment fund specialising in contemporary international fine art photography. It mainly buys limited edition prints investing in what it calls: photographically established classics; rising stars and new talent.
The fund is financially managed by PMG Fonds Management AG. The Fine Art Invest Fund allows for investors to disinvest at any time by selling directly to collectors.
Launced in February 2015, the Scheryn Art Collectors’ Fund is only investing in contemporary African art. Based in South Africa it is headed by Herman Steyn and Dabing Chen.
Tiroche DeLeon is an art collection which became an art fund. Started by collector Serge Tiroche and Russ DeLeon in 2011, in 2012 they sold 230 works to Art Vantage PCC Limited Gibraltar.
With an end date of 2017 and a 10 year term, the fund is compiled of 290 works by artists from over 30 countries. Open to both private and institutional investors, the average acquisition price is $60,000 with a minimum investment of $500,000.
|Fund||Management||Based (regulated)||Type of art||Assets under management (Portfolio)||Launch||Return|
|American Masters Collection||The Collectors Fund||Kansas City, United States||Contemporary 21st American Art||$20 million||May-07||28.5%*|
|Twentieth Century Masters Collection||The Collectors Fund||Kansas City, United States||Contemporary 21st American Art||Expected 25-35 works||Sep 2012On going (expected close early 2015)||Not yet|
|AntheaContemporary Art Investment Fund SICAV FIS||Anthea||Zug, Switzerland||Post war and contemporary (35% emerging artist, 65% established)||36 works; 13 artists:||Apr-13||23.40%|
|Artemundi Global Fund||Artemundi||Cayman Islands||15th Century to modern||150-200 works||2008||81.8% (16.4% Per Annum)|
|Art Fonds 21||Art Fonds 21 AG artfonds-21.com/||Germany||Contemporary Art||28 artists||Apr-07||10% + Per Annum|
|Art Partners I||Art Partners||Tel Aviv||Mid-career contemporary artists||Sep-07||50% +|
|Art Partners II||Art Partners||Tel Aviv||Mid-career contemporary artists||2013|
|BGA Private Equity Investment Fund||Brazil Golden Art, Brazil Plural||Brazil||Contemporary Brazilian art||Unknown||January 2011||9.80%|
|Day Star Art Fund||Nexus Fund Administration (B&C Limited)||Gibraltar||19th Century - Contemporary||$60 million||June 2014||20%|
|Fine Art Invest Fund||PMG Fonds Management AG||Switzerland (Malta)||Post 1970 photography||$17.8 million, 58 artists||2010||32.69%|
|The Fine Art Fund I||The Fine Art Fund||Luxembourg||Mainly 'Wall Art' including: Old Masters, Impressionist, Modern, Contemporary, Iranian, Iraqi, Arabic, Calligraphy, Chinese contemporary, Chinese porcelain||80 works, 65 artists||2004||14.23%
(On average 10% on each work)
|The Fine Art Fund II||The Fine Art Fund||Luxembourg||2006||(On average 10% on each work)|
|The Fine Art Fund III||The Fine Art Fund||Luxembourg||2010||(On average 10% on each work)|
|The Chinese Fine Art Fund||The Fine Art Fund||Luxembourg||Chinese Art||$10 million||2006||(On average 10% on each work)|
|The Middle Eastern Fine Art Fund||The Fine Art Fund||Luxembourg||Middle Eastern Art||$25 million||Jan 2008||(On average 10% on each work)|
|Tiroche Deleon Collection||Art Vantage PCC Limited||(Gibraltar)||Contemporary Art (especially from developing markets)||$20 million||Jan-11||30.92%|
First published: February 2015 – updated in May to include Scheryn Art Collectors’ Fund