Art Funds Feel A Revival As Global Economy Warms Up

More Fund Managers Eyeing Art Investments — But Will They Rely On The “Old Favorites” Or Buy Art From Emerging Art Powerhouses Like China?

 

Wang Jin, Knocking at the door, 1995 © Wang Jin

The New York Times recently wrote on art funds becoming a popular option for investors looking to diversify their asset holdings as the global economic crisis eases and investors crave more diverse investment destinations. Art funds, which dipped in popularity as the crisis took hold, have actually increased in number over the years, with many focusing only on one type of art or period. As the author points out, individuals who had been burned by risky investments in the pre-recession years are again looking at art as a wise investment:

“The art market has taken in the corrections. People are confident at today’s price levels,” said Anders Petterson, founder of ArtTactic, a London-based art market research firm, in a comment posted on the company’s Web site. “We are reaching the bottom, assuming the stock market does not dip again.”

Reflecting the new hesitance to put money towards the great-risk-but-great-rewards-maybe investments of the world like real estate, art investment funds are now getting more creative. Some funds are going against the grain, putting money toward assets that are not expected to bring quick, huge returns yet are expected to appreciate over time and — perhaps most importantly — outpace inflation. Since massive global spending on stimulus packages and the like are expected to bring at least SOME measure of inflation into the picture, investors are looking at assets that will keep their money in check, and allow it to grow at a sustainable pace.

Two Corners of the Globe, Two Chinese Art Exhibitions

Boston’s “Mahjong” Exhibition and Brisbane’s “China Project” Showcase Chinese Contemporary Art

Included in the Mahjong exhibition: Liu Xiaodong, "Eating", 2000

Two simultaneous exhibitions of Chinese Contemporary Art are bringing artwork from dozens of top Chinese artists to crowds in Boston and Brisbane, showing off the respectable collections of Uli Sigg (Boston show) and Nicholas Jose and Claire Roberts (Brisbane). The Boston Globe writes that the important works from Sigg’s extensive and exhaustive collection have provided guests with a great introduction to China’s thriving art world:

Will Investors Reevaluate Art Investment Funds? And Will Fund Managers Include A Global Mix Of Art?

Investment Funds Looking To Buy Artwork, Gains In Industry Expected As Investor Confidence Increases

Wang Jin, Knocking at the door, 1995 © Wang Jin

It has not been a very good year or so for assets in general, as everyone knows. Reflecting the new hesitance to put money towards the great-risk-but-great-rewards-maybe investments of the world like real estate, investment funds are getting creative. Some funds are going against the grain, putting money toward assets that are not expected to bring quick, huge returns yet are expected to appreciate over time and — perhaps most importantly — outpace inflation. Since massive global spending on stimulus packages and the like are expected to bring at least SOME measure of inflation into the picture, investors are looking at assets that will keep their money in check, and allow it to grow at a sustainable pace.