Portfolio

Our research indicates that one of the most liquid and stable areas of the art market, and indeed that which offers the best possibility of price appreciation, is Post-War art from non-producing or deceased artists. We focus on investing in artists with established reputations, which are expected to respond like other irreplaceable real assets, such as gold, over the long term.

PORTFOLIO STRUCTURE
Our research indicates that one of the most liquid and stable areas of the art market, and indeed that which offers the best possibility of price appreciation, is Post-War art from non-producing or deceased artists. We aim to hold 80-120 works in total from about 40-60 artists with strong established auction results at the leading auction houses. This provides the maximum diversification and lowers overall portfolio risk. The works can be in any media, such as paintings, sculpture and photography.

Why Post-War and not Impressionist or Old Masters? We are not interested in speculating on individual artists, betting that we can find the next big thing in Contemporary art. We focus on investing in artists with established reputations, which are expected to respond like other irreplaceable real assets, such as gold, over the long term. Old Masters and Impressionists would offer some of these characteristics, but because of the price of individual pieces, it would prove less liquid, undermining the desire for monthly liquidity in the Fund. It would also decrease the number of pieces that could be held, eroding the breadth of diversification the portfolio could otherwise achieve. The wise art-market investor holds a broad variety of art and artists.

SELECTION
The Investment Committee selects art from artists that have strong auction results and who are preferably listed as part of the AMR Post-War Art 50 Index. The index gives Collection of Modern Art a closely correlated performance guide and makes the process of asset allocation more accessible and acceptable to many investment committees, trustees and individual retail investors. Example artists include Roy Lichtenstein, Willem de Kooning, Lucio Fontana, Jean-Michel Basquiat, Alexander Calder, Robert Rauschenberg, Keith Haring and Andy Warhol among others. You can see details of the intended collection by visiting the Artist pages.

MANAGING THE PORTFOLIO
Art that hangs in museums or otherwise gets public exposure will appreciate in value faster than art which sits in private homes or vaults, as it gains in reputation. For that reason, we intend to promote the works in public via exhibitions and making them available to view by investors and the general public.