The Expert’s Guide
To Fine Art Investment
Contents
Welcome
1
Contemporary Art: A Secure, Lucrative Investment
2
The Current Global Market + Global Art Market Share
3
Understanding The Market: Two Aspects
4
Artist Classifications
4
Factors That Drive The Art Market
6
5 Compelling Reasons To Invest In Art
7
How To Earn 6% Per Year, Every Year, With Art Works
8
Portfolio Management
8
Selling Art
9
Investor Feedback
9
Contact Us
10
Art Works: The Expert’s Guide to Fine Art Investment
2
Welcome
Our 35 years of combined experience in the fields of art and investment have taught us that
art is one of the safest and most exciting ways to diversify a modern investment portfolio.
Being fully immersed in the contemporary art landscape means we’re well-positioned to
guide you through a series of clear steps to choose your pieces, and benefit from the potential
to see those pieces dramatically increase in value.
Based in the heart of Singapore’s Central Business
District, Art Works Group was established in 2011. With
a strong record of gaining outstanding results for our
clients, we have become the pre-eminent art investment
consultancy in the Asia-Pacific region. Our 35 years’
combined experience in the fields of art and investment
(and being passionate art collectors ourselves!) means we
are uniquely equipped to assist you in your selection and
investment in Fine Art.
Our love of fine art blends with our pragmatic approach to
investing, and we are proud of the tangible results achieved
for our clients. For example, as a result of working with Art
Works’ expert team of advisors, our clients are achieving
on average an incredible 29% ROI per annum over 3 years.
Our mission is to assist you in building a portfolio of pieces
by established and/or blue chip artists, and to enjoy the
returns from a stable and secure asset class.
In a volatile world, the resilience of a safe haven asset
such as Fine Art provides a buffer against declines in the
global economy, as a tangible asset it means that your
investment will never disappear into the ether unlike
stocks, shares and bonds.
No longer is collecting and investing in art reserved for
the elite. As more people are exposed to art, there has
been a growing sophistication in the appreciation of all
forms, whether by emerging, established or blue-chip
artists. And with our expert team by your side, you can
acquire the confidence and knowledge to participate in
what has become an exciting, secure investment.
At Art Works, we provide unpretentious assistance so that
you feel at ease right through the process.
Contemporary art is big business, worth approximately
$64 billion in 2019. Art investment is becoming a key
option - Deloitte reported in 2017 that 88% of wealth
managers believe art should be an integral part of any
investment portfolio.
Each acquisition ought to balance aesthetic appreciation
with sound investment principles and, with Art Works, you
are poised to access both.
“FOR DISCERNING INVESTORS LOOKING FOR LONGER-TERM ASSET APPRECIATION POTENTIAL
WITH RENTAL INCOME IN AN ALTERNATIVE INVESTMENT CLASS MANAGED BY DISCRETE AND
PROFESSIONAL MANAGERS, I RECOMMEND ART WORKS.” - Terrence Chee, Investor
The graph shows the Sotheby’s Mei Moses Index for the broader art
market from 1950 to 2018. The index benchmarks at 1 in 1950 and
shows the trajectory in demand for the overall market, a compound
annual growth rate of 8.8%. (Source: Sotheby’s)
Art Works: The Expert’s Guide to Fine Art Investment
1
A Secure, Lucrative Investment
Our goal at Art Works is to make investing in art as accessible for as many people as possible.
Some clients choose to weight their portfolio with blue-chip artists who have already gained wide attention from
both the media and serious collectors. Others prefer to begin their collection by acquiring pieces from our portfolio
of established mid-career artists. However, each of the artists we represent have a clear identity in the market and, we
believe, the potential to see their pieces significantly increase in value over time.
As a client of Art Works you will gain access to our comprehensive network of art market contacts. We can ascertain
exactly which pieces are available from particular artists you might have been watching and act as your buying agent.
We also assist many of our clients with the sale of each piece when they choose to sell.
Once you choose your piece, we can look after framing, hanging, delivery and storage so that you have complete
peace of mind.
Art Works: The Expert’s Guide to Fine Art Investment
2
The Current Global Market +
Global Art Market Share
Fine Art is incredibly resilient and stable, even at times
when the global economy is in decline. Its resistance to
temporary economic issues reinforces Fine Art as a stable
asset class.
Capital growth remains powerful, with a growth rate of
6% between 2017 and 2018 and a total $67.4 billion in
sales during 2018.
Even during the Brexit challenges the UK recorded a rise
in the value of sales of 8% during 2018. US Sales reached
$29.9 billion (the highest on record). Of global sales, 46%
came from the auction sector with the remaining 54%
from galleries and online retail.
Globally the US made up 44% of sales, with the combined
nations of the US, China and the UK seeing 85% of the
value of sales. Between 2006 and 2018, China and the
UK have been vying for second place - by 2018 China
came in third with 19% of global sales by value, and the
UK claiming 21%.
In March 2020, UK-based art historian Kathryn Brown
noted that “... ART SURVIVES DISASTER AND
AS AN ASSET CLASS IT IS VERY RESILIENT,
PARTLY BECAUSE IT IS NOT DEPENDENT ON
PRODUCTION CHAINS.” 1
Art Works: The Expert’s Guide to Fine Art Investment
3
Understanding The Market:
Two Aspects
It’s essential to have a broad understanding of the distinction between the Primary and
Secondary Art Markets.
When a piece is first sold by an artist or dealer it is referred to as a primary sale. From there, all sales are called
‘secondary’. It’s the primary market that sets the benchmark for potential future sales. A skilled Art Advisor keeps a
keen eye on the primary market to assist in predicting which names may go on to become significant in the art world.
The secondary market is where a piece of art may drastically increase in value - on occasion as much as ten-fold. The
past ten years has seen an increase in contemporary artworks’ value. In 2007 the total sales at auction of post-war and
contemporary art surpassed those of Impressionist and modern for the first time.
Part of measuring the pulse of these markets is an up-to-date recognition of whether an artist is seen as ‘emerging’,
‘established’ or ‘blue-chip’.
“BUT AS JITTERS HIT THE GLOBAL ECONOMY, THE WORLD’S WEALTHY TEND TO TURN
TOWARDS ALTERNATIVE ASSETS THAT ARE SEEN AS MORE CONSISTENT STORES OF VALUE,
MODERN ARTWORKS BEING PRIME AMONG THEM.” - Source: Artsy.net
Artist Classifications: Emerging,
Established And Blue-chip
As the terms denote, an emerging artist is in the early
stages of their professional career, with their work mostly
being sold on the primary market. An emerging artist will
have gained some attention and may have won prizes
and have something of an auction record. Their work
is being collected, and there has been press coverage.
Works by these artists may require a little time for their
prices to appreciate.
Established artists have an auction and gallery sales track
record, and their works are hung in both public galleries
and private collections. Their names are recognised due
to wider press coverage, and their work provides stellar
investment opportunities. Our Advisors at Art Works
work only with mid-career, established artists who may
go on to become blue-chip artists.
We are well-versed in finding artists whose work is in
high demand, has limited production, has international
representation and a minimum 5-year auction track
record. This provides security of investment at purchase
with room for growth.
Widely-known even outside the art world, blue-chip
artists are often reaching the latter part of their career
or are no longer with us. Their works hang in national
galleries and international collections, as well as the
occasional exclusive private collection.
Their pieces generally don’t change hands often and
returns - in percentage terms - may be more reserved,
however there can be significant gains achieved by
collecting their works.
Art Works: The Expert’s Guide to Fine Art Investment
4
One of the artists we work with:
Danny Minnick
Danny Minnick (b. 1983) is a multi-faceted, fast-rising American artist born in Seattle, Washington.
His abstract expressionist style is often juxtaposed to the works of Jean-Michel Basquait and
reminiscent of the humanity in Keith Haring’s works, with his own humorous disposition and
sensibility.
As such, these elements often nuance his paintings that
use layers of oil and spray paints to bring form to what
might seem at first a riot of colours in the form of brush
work, splatter work, fragments and splinters.
Danny’s first successful show, Break the Walls, at Boîte
Noire Gallery in the Pacific Design Center in Los Angeles,
paved the way for his expansion into the fine art world,
following his skateboarding injury which prohibited him
from pursuing the sport professionally. Since then, he has
held 5 other solo exhibitions within the United States and
around Europe.
Minnick’s works are collected by high profile characters
and A-list celebrities, including Robert Downey Jr. ,
LeBron James, Nick Cassavetes, Cash Warren and Jessica
Alba, who collaborated with Minnick to create a mural for
her ethical empire, The Honest Company.
Danny Minnick is not only an artist – he embodies the
spirit of creativity in other avenues, as an actor, filmmaker,
director, cinematographer, fuelled by his past career as a
professional skater.
Art Works: The Expert’s Guide to Fine Art Investment
5
Factors That Drive The Art Market
Key aspects that drive the contemporary art market include:
GALLERY REPRESENTATION & SOLO EXHIBITIONS
When we see an artist develop an enduring relationship
with a particular gallery, it indicates the artist’s work
is accepted as of considerable merit. And when a solo
exhibition is hosted, it’s a concrete sign of confidence
from the gallery.
LACK OF AVAILABILITY OF WORK
When an artist’s work is in demand from a number of
galleries and commissioned work is added to a waiting
list, we pay attention. This is especially so when we
monitor the rise of emerging artists.
AUCTION RESULTS
The buzz of a packed auction room and the excitement
when price records are smashed can be like jet fuel to an
artist’s work. The momentum of the secondary market
can compound the success of established artists very
quickly.
For emerging artists who haven’t reached secondary
sales, it’s best to turn to factors such as press coverage
and gallery representation as reliable indicators.
PRESS
As with any creative industry, press coverage in the
right outlets can propel an artist’s career by building
momentum and increasing demand for their work.
At Art Works, we monitor specialist art magazines, blogs
and the broader press for indicators of emerging artists
who are destined to become important names in the
contemporary art world.
PUBLIC GALLERIES & MUSEUMS
Artists whose work is hung in public galleries and
museums usually have very strong investment potential.
The curators seek out work they believe is of significance.
Exhibitions held in public galleries and museums play
a crucial role in exposing the public to new, important
works of art.
CORPORATE ENDORSEMENT
When a sizeable company decides to allocate budget to
a particular artist, it carries weight. After all, a commercial
entity is not in the business of losing money. Corporations
work hard to enhance their image and will only hang
works that complement that goal. When a company
invests in art, it can lead to new customers, improve the
perception of their brand and give them a competitive
edge.
ART FAIRS
Art Fairs are fabulous events that allow collectors to
discover artists that may go on to show at larger venues
in years to come. In other words, it’s trend-spotting - a
blend of higher-priced works and pieces often under
$10,000. Because established galleries join the milieu and
invite their guests to attend, an Art Fair can offer a very
up-to-the-minute indicator of the state of the art market
in a particular region.
BOOKS & JOURNALS
An important milestone in an artist’s career is being
recognised enough to be featured in reference books or
art magazines. This often leads to an uptick in the value of
their work as demand increases.
Art Works: The Expert’s Guide to Fine Art Investment
6
5 Compelling Reasons To Invest In Art
1. Capital Growth Potential
Between 1950 and 2018, contemporary art delivered a compounded average
annual return of 8.8% per annum. And with Art Works your investment can
reap additional benefits through our corporate leasing program.
2. Fully Asset Backed
Your investment in art is tangible which provides a security and peace of
mind that other types of investments may fail to deliver. Each piece will
always maintain a residual value.
Reasons to
Invest in Art
3. Satisfaction of Ownership
“ART WASHES AWAY FROM THE SOUL THE DUST OF EVERYDAY LIFE.”
- Pablo Picasso
Investing
in Potential
art alone does not yield an
annual income as it’s a growthDiversification
Capital Growth
oriented
capital
investment.
Instead,
you’re
selecting
anis asset
appeals
The global
art market
by and that
large completely
When isolated the contemporary art segment
to
you
that
enjoyment.
uncorrelated to the world’s major stock markets.
of the
Meiand
Moses
Art brings
Index reveals
that
contemporary art has delivered a compounded
It can therefore be used by investors as an
However,
Works
it is possible
to increase
that satisfaction
excellent
portfolio diversification
tool in timesof
average annualwith
return Art
of 8.8%
per annum
economic
uncertainty. Post-Brexit
UK is
between 1950 and
2018.choose to participateofin
ownership
if you
our corporate
leasing the
program
certainly
a period
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uncertainty.
- which does bring an annual income.
Talk facing
to us
about
how you
can
compound
the
pleasure
of
owning
contemporary
art.
Investing in a piece of Art means your investment
Inflation
is Fully Asset Backed
Investing in Art can be an excellent hedge against
When you invest in a piece of Art you become
inflation, as shown in the graph below. At the time
the owner of a tangible asset which will always,
4. Diversification
of writing (January 2019) inflation is running at
unlike some other investments such as stocks and
Largely
insulated from the volatilities of2%the
stock market, the art market
per annum.
shares, have a residual value.
provides a superior option to diversify in times of economic uncertainty.
Satisfaction of Ownership
Investing in a piece of art won’t yield an income as
it’s aInflation
capital growth orientated investment. Instead
5.
your dividend
the ability rate
to enjoy
The
global isinflation
forowning
2020your
is listed at 2.99% (Source: Statistica). When
piece
of
art
by
living
with
it
hanging
in
homehedge against inflation.
you invest in art you create ayour
strong
or even in your office.
Performance When Inflation is High and Rising
5%
Bonds (US)
18%
Art (Mei Moses Art Index)
13%
Commodities
2%
Equities (US)
Asset class in period from 1973-2012
(source: JP Morgan 2016. ECJ Capital Research)
24 Reasons to Invest in Art
Art Works: The Expert’s Guide to Fine Art Investment
7
How To Earn 6% Per Year, Every Year,
With Art Works
Quite simply, your success is our success.
Not only do we assist you in choosing artworks that
you will enjoy, but you can choose to participate in our
corporate leasing program so that you receive a regular
monthly income on top of the long-term gains from your
capital investment. More businesses are now using art
to represent the soul of their company and to reinforce
brand positioning, and Art Works can place your art in
corporate offices, hotels or private residences to deliver
you additional income.
We focus completely on ensuring that our client portfolios
provide excellent returns, that our artists experience
strong exposure to the right market sector, and that our
corporate clients have access to art that complements
and enhances their spaces.
With over 35 years’ combined experience in the fields
of art and investment (and passionate art collectors
ourselves!) we are uniquely equipped to assist you in your
art investment selection.
In our experience, art is one of the safest and most
exciting ways to diversify a modern investment portfolio.
We see art as more than just beauty - we see its true
potential as an investment to bring you solid annual
returns each and every year through our exclusive art
leasing program.
Portfolio Management
Investing in fine art not only diversifies your portfolio but creates an attractive source of income.
A symbiotic relationship between your investment and
our corporate leasing service also allows us to lease your
artworks to corporate clients. In turn, you enjoy low-risk
fixed returns of up to 6% P.A. for a minimum of 2 years.
Entry level pieces at Art Works start from SGD$20K.
We assist in art selection, provide insights and updates on
the artist throughout the life of your investment, ensure
your portfolio is well-balanced, and keep you updated on
the broader contemporary art market.
We also take care of packing, shipping and - where
required - storage of the piece. All artwork is covered by
Chubb insurance at appropriate and secure locations.
Each piece comes with a valuation document prepared
by an independent, qualified professional valuer. If you
choose to retain the art for your own enjoyment and
would like assistance with hanging your piece, we can
provide advice and, if required, arrange for a professional
to install the art in your chosen location. Should you
take part in our corporate leasing program to build extra
income, we arrange the placement of your piece in an
appropriate corporate location.
And to help you enjoy your diversified portfolio, as a
privileged client of Art Works you’ll receive invitations to
join internal and external events ranging from exhibitions
to investment seminars.
Art Works: The Expert’s Guide to Fine Art Investment
8
Selling Art
Right from the moment we begin to work with you to select the right pieces for your art
investment portfolio, we assist you in planning potential exit options should you wish to realise
the profit on your capital investment.
For works created by blue-chip or established artists, an
auction house may be the right fit. We would ensure the
fees are taken into account before you take this route,
as some auction houses charge between 12%-15% of the
“hammer price”.
Alternative channels are via gallery sales through our
network of prestigious partner galleries, our own
exhibitions or via our listings on Artsy and/or Artnet - both
being highly-respected online art platforms.
At all times we maintain a list of investors who are looking
to buy, and investors ready to sell. Through this channel
we are able to identify an investor or collector who would
be an ideal purchaser for your piece - this can be a very
lucrative option should you happen to own work from
sold-out exhibitions, or by an artist whose work is no
longer available on the primary market.
Investor Feedback
“WE HAVE BEEN PURCHASING ART FOR RENTAL
THROUGH ART WORKS SINCE 2013. WE HAVE
NOW BUILT UP AN EXCELLENT PORTFOLIO
OF GLOBALLY RECOGNIZED ARTISTS AND ARE
RECEIVING VERY USEFUL INCOME FROM OUR
PURCHASES.”
“I WOULD LIKE TO THANK SAMUEL FOR GIVING
ME THE OPPORTUNITY TO INVEST IN FINE ART.
HE HAS BEEN PROFESSIONAL IN MANAGING
MY PORTFOLIO ACTIVELY. RENTAL PAYMENTS
FOR THE ARTWORKS HAVE BEEN RECEIVED
PROMPTLY.”
- Gary Brown, Investor
- Jimmy Lim, Investor
Art Works: The Expert’s Guide to Fine Art Investment
9
Creativity
takes
courage.
HENRY
MATISSE
Contact Us
Art Works Pte Ltd
https://www.artworks.com.sg/
+65 6557 2250
3 Pickering St, #01-55, Singapore 048660