Art FinanceArt Funds

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.

MUST READ: Does investing in an art fund make sense?

MUST READ: Art fund backgrounder: Three key examples of art funds

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.

MUST-READ: Market ripe for art investments – Massimiliano Subba

Artemundi Global Fund

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.

MUST-READ: Art funds: an inside view from Artemundi

ArtFonds21

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.

MUST-READ: Artfonds 21 – A very different art fund

Art Partners

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.

Brazil Golden Art

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

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.

Day Star Fund

Malta based Day Star Fund is a regulated art fund which was incorporated in August 2012.

MUST READ: Profile: Day Star Fund

The Fine Art Fund

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.

MUST-READ: Art fund backgrounder: Three key examples of art funds

The Fine Art Invest 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.

MUST READ: The Fine Art Invest Fund: The photography fund

Scheryn Art Collectors’ Fund

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.

MUST READ: Hermyn Steyn: Why I launched the world’s first Contemporary African Art Fund

Tiroche DeLeon Collection

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.

 

FundManagementBased (regulated)Type of artAssets under management (Portfolio)LaunchReturn
American Masters CollectionThe Collectors FundKansas City, United StatesContemporary 21st American Art $20 millionMay-07 28.5%*
Twentieth Century Masters CollectionThe Collectors FundKansas City, United StatesContemporary 21st American ArtExpected 25-35 works Sep 2012—On going (expected close early 2015) Not yet
Anthea—Contemporary Art Investment Fund SICAV FISAntheaZug, SwitzerlandPost war and contemporary (35% emerging artist, 65% established)36 works; 13 artists:Apr-1323.40%
Artemundi Global FundArtemundiCayman Islands15th Century to modern150-200 works200881.8% (16.4% Per Annum)
Art Fonds 21Art Fonds 21 AG artfonds-21.com/GermanyContemporary Art28 artistsApr-07 10% + Per Annum
Art Partners IArt PartnersTel AvivMid-career contemporary artistsSep-07 50% +
Art Partners IIArt PartnersTel AvivMid-career contemporary artists2013
BGA Private Equity Investment FundBrazil Golden Art, Brazil PluralBrazilContemporary Brazilian artUnknownJanuary  2011 9.80%
Day Star Art FundNexus Fund Administration (B&C Limited)Gibraltar19th Century - Contemporary$60 millionJune 201420%
Fine Art Invest FundPMG Fonds Management AG Switzerland (Malta)Post 1970 photography$17.8 million, 58 artists2010 32.69%
The Fine Art Fund IThe Fine Art FundLuxembourgMainly 'Wall Art' including: Old Masters, Impressionist, Modern, Contemporary, Iranian, Iraqi, Arabic, Calligraphy, Chinese contemporary, Chinese porcelain80 works, 65 artists 200414.23%
(On average 10% on each work)
The Fine Art Fund IIThe Fine Art FundLuxembourg2006(On average 10% on each work)
The Fine Art Fund IIIThe Fine Art FundLuxembourg2010(On average 10% on each work)
The Chinese Fine Art FundThe Fine Art FundLuxembourgChinese Art $10 million 2006(On average 10% on each work)
The Middle Eastern Fine Art FundThe Fine Art FundLuxembourgMiddle Eastern Art $25 million Jan 2008(On average 10% on each work)
Tiroche Deleon CollectionArt Vantage PCC Limited(Gibraltar)Contemporary Art (especially from developing markets)$20 millionJan-1130.92%

First published: February 2015 – updated in May to include Scheryn Art Collectors’ Fund

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Rebecca Hawkins

Rebecca Hawkins

Rebecca's passion for the visual arts started at a early age so studying a BA (Hons) in History & Philosophy of Art was a natural progression. A keen artist she has also completed a Fine Art Foundation to develop her own artistic practice. Rebecca has recently started writing features for Private Art Investor. Please feel free to contact Rebecca on +44 1737 245 564 or at rebecca@privateartinvestor.com if you are interested in arranging an interview.