Art as an Investment - Pros and Cons
Art is certainly an asset class in its own right as it is used as a financial tool (i.e. art lending) and its ownership may have tax and legal consequences. Based on a short introduction to the market and the asset (drivers of value, title, provenance, condition) I will touch upon the pro's (low correlation with other asset classes, inflation hedge) and the cons (high transaction costs, illiquid and opaque market) of art as an investment vehicle and provide practical advice on how to build an art collection (transaction costs, how to buy well, contemporary vs other art markets).
Annelien Bruins has worked within the international art world for 15 years. After honing her expertise managing two well-known, extensive private collections of art, antiques, and collectibles, she set up London-based Bruins Private Collections Consultancy in 2007, providing portfolio management to both private and corporate clients from Europe, the United States, and Asia. Five years later, Annelien hopped the Atlantic and joined Tang Art Advisory where she serves as COO and senior art advisor. Annelien is a member of the Estate Planning Council of New York City.
Annelien holds a BA in Marketing and Communication from Ichthus Hogeschool, Rotterdam, an MA in Arts and Heritage Management from London Metropolitan University. She holds a Foundation Certificate in Art Law and a Diploma in Art Profession Law and Ethics from the Institute of Art and Law in the UK and an MSc in Leadership and Strategy (Sloan Fellowship) from the London Business School. Recognizing her acute understanding of the art market and its many nuances, Spears Wealth Management named Annelien Best Art Advisor in 2014 and 2015.
She has lectured at Christie's Education and Sotheby's Institute of Art, has written for Family Office Exchange, Spears Wealth Management, and Private Wealth Focus. She has been interviewed by CNBC, Thomson Reuters, Barrons Asia, the Wall Street Journal, the Financial Times, Art + Auction, Investment Week and Private Asset Management.