Investing in fine art is fast gaining popularity, with the global art auction market growing at an average of 13 per cent annually, from US$3 billion in 2000 to US$16.1 billion in 2015.
RESILIENT ASSET CLASS
The growth is not surprising, given the resilience of fine art’s value. 76 per cent of art buyers surveyed in 2014 by Deloitte Luxembourg are increasingly acquiring art and collectibles for investment purposes, up from 53 per cent two years earlier.
“Fine art is one of the few asset classes that has not been affected by any recent financial crisis. It is an effective capital growth vehicle or wealth preservation tool for our clients who are looking for a safe haven to park their money,” said Mr Troy Sadler, Managing Director of Art Index Singapore.
ART INDEX’S SOLID REPUTATION
With offices in Sydney and Singapore, Art Index is a boutique art investment house that serves clients who seek to benefit from the inherent potential of diversifying toward art within their broader investment portfolio. Since its establishment in 2007, the firm has built a steady track record globally in guiding clients through the entire process of successfully trading art for a profit. A pioneer of art investment in Asia, the firm, which provides access to some of the hardest to source contemporary fine art from China, South East Asia and Australia, offers clients a fully managed service including art investment advice, independent valuations and portfolio management.
POTENTIAL FOR HIGHER RETURNS THROUGH CORPORATE LEASING
Art Index identifies and selects works from artists who have a proven track record at auctions. These works typically have recorded a steady growth in value for at least five years. Apart from selling these works to clients, Art Index offers an attractive corporate rental program. It helps clients to lease out the purchased art pieces to corporate entities, and guarantees a return of between seven and nine per cent per annum for a minimum period of two to three years. This is of course on top of potential capital appreciation.
THE FUTURE IS BRIGHT
“The art market in Asia has consistently broken records since the turn of the millennium and should continue to do so,” added Mr Sadler.