Art Asset Management: What Can You Do to Protect Your Art Investments?

Thursday, February 13th 2014

Presented by:

Anneline Bruins COO and Senior Art Advisor at Tang Art Advisory

Annelien Bruins started her art world career in 2001 by managing privately-owned collections of art, antiques and collectibles worldwide. In 2007 she set up London-based art advisory firm Bruins Private Collections Consultancy. She currently works at Tang Art Advisory, a full-service art advisory firm operating out of New York, Miami, London and Hong Kong. In addition to having introduced the concept of art asset management to the art world, Annelien is a sought-after writer and guest speaker: she has been invited to lecture at Christie’s Education and Sotheby’s Institute of Art. She has been interviewed by Thomson Reuters, the Wall Street Journal, the Financial Times, Investment Week and Private Asset Management. She has written articles for Spears Wealth Management, Family Office Exchange, Private Wealth Focus and Private Asset Management.

DISCLAIMER This presentation is based on my experiences as an art advisor and may not be applicable to your situation. The lists of suggestions and recommendations are anecdotal and not exhaustive. Instead of relying on this presentation to take decisions in relation to protecting your art, you should ask the art professional you are working with about recommendations for your specific situation.

ab@tangartadvisory.com | +1 347 409 2786

Art Asset Management

• Incredible increase in art values in recent years

• Poor performance of traditional financial assets

• Art has come to be seen as an asset class

• Like real estate and other tangible assets

• Requires cost-effective but regular maintenance

• Risk management: protecting collector’s investment

Purchasing an Artwork

Images © and Courtesy of Laurent Baillet

Documentation: Why do you need it?

• Damages and restorations have an effect on value

• The work was looted or stolen

• The work is a fake or forgery

• Confidentiality in relation to art transactions

• Risk management: title claims and resources

• Due diligence

Documentation

• Invoice

• Certificate of Authenticity

• Documents describing the provenance

• Detailed condition report

• Catalogue raisonne, literature, exhibition history

• High resolution images of front and back (if painting)

Find the Art Professional - Transport

• Ask your insurance broker or carrier for recommendations

• Experienced technicians used to handling art

• Different options and pricing for packing and transport

• Do they carry insurance while the art is in their care?

Appraisals

• Insurance appraisals

• Fair market appraisals

• Sales estimates

• How to find the right appraiser

Insurance Appraisals

• Purpose of insurance appraisals

• Why are insurance appraisals generally higher than

sales estimates and fair market values?

• How often should you get an insurance appraisal?

Fair Market Appraisals

• Purpose of fair market appraisals

• Estate planning and wealth transfer

• Fair market appraisals and sales estimates

• Example: Rauschenberg’s Canyon, 1959

Sales Estimates

• Purpose of sales estimates

• How do sales estimates relate to a sale price?

• What is the reserve price and how is it determined?

Find the Art Professional - Appraisers

• Who does appraisals?

• Auction houses

• Appraisal firms

• Independent Experts

• Appraisers Association of America

Damaged your Artwork

Images © and Courtesy of Laurent Baillet

Find the Art Professional - Conservation

• Difference between conservation and restoration

• Ask your insurance broker or carrier for recommendations

• Ask the gallery where you bought the piece for recommendations

• Sometimes certain artists work only with specific

conservators

Insurance

• Difference between insurance broker and carrier

• Different carriers have different products

• Can you insure art on a homeowners policy

• Difference between fine art policy and homeowners policy

• All risk insurance, depreciation of value, transit

• Limits to single items or bulk values

Conclusion

• Art market is opaque and art is a difficult asset to care for

• There are many different opinions about treating art

• Therefore you have to ask questions

• Choose the professional who is willing to answer them

• Taking cost into consideration

• So you can adequately protect your art investment

Questions

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