Art Consultancy

Market Size and Allocation Opportunity

The art market is a vast, overlooked asset class for the broader investment community

Source: Preqin, McKinsey & Company: Private markets come of age: McKinsey Global Private Markets Review 2019. Deloitte, ArtTactic: Deloitte Art and Finance Report 2019. World Bank Database.
Notes: There are significant differences between the asset classes presented. For additional information, see Important Disclosures.
1. Private market assets under management investing in debt
2. Private market assets under management investing in real estate, natural resources, and infrastructure
3. Estimated value of artwork held by individuals. Estimated based on surveys of wealth allocation to art and estimates of total wealth held by individuals
4. Private market assets under management investing in private equity
5. Includes gold held in jewellery, official sector, bars/coins, EFTs (and similar) and other fabrication (and unaccounted)
6. Market capitalization of listed companies globally (US dollars)
7. Knight Frank World Wealth Report, 2020. Fidelity Research, Institutional Asset Allocation, 2019

Long-Term Historical Performance

Over 25 years, Contemporary Art has generated a nearly three-fold outperformance over the S&P 500

Source:Yahoo Finance. Index shown through July 2020. Index data updated as of July 30th, 2020.
Notes: There are significant differences between the asset classes presented. For additional information, see Important Disclosures.
1. Repeat-Sale Pair Index of Post-War and Contemporary Art (as defined by the applicable auction house) using Standard & Poor’s CoreLogic Case-Shiller Home Price Indices Methodology.
2. The Standard & Poor’s CoreLogic Case-Shiller Home Price Indices Methodology results in a value-weighted index. Auction results realized in a currency other that U.S. dollars have been converted using exchange rates provided by
FRED (St. Louis Federal Reserve) at the time of the most recent sale. This adjustment is made to account for long-term exchange rate trends that would otherwise distort artworks’ performance.
3. S&P 500 Total Return Index as of July 30th, 2020.

Outperformance and Low Correlation

Attractive long-term performance with low correlation relative to traditional asset classes

Source: FRED (St. Louis Federal Reserve). MSCI Database. Yahoo Finance.
Notes: There are significant differences between the asset classes presented. For additional information, see Important Disclosures.
1. Repeat-Sale Pair Index of Post-War and Contemporary Art (as defined by the applicable auction house) using Standard & Poor’s CoreLogic Case-Shiller Home Price Indices Methodology.
2. Index performance measured through July 2020. Art market data updated as of July 30, 2020.

Contemporary Art’s Low Loss Frequency

Over the past 25 years, Contemporary Art has experienced losses only 4% of the time measured over 3-year investment horizons

Art as the Alternative Real Asset

Contemporary Art has benefited from low real interest rate environments, yet outperforms other tangible assets, including gold and US real estate over multi-year investment horizons, and is well positioned for a “lower for longer” rate environment

Source: FRED (St. Louis Federal Reserve).
Notes: There are significant differences between the asset classes presented. For additional information, see Important Disclosures.
1. Repeat-Sale Pair Index of Post-War and Contemporary Art (as defined by the applicable auction house) using Standard & Poor’s CoreLogic Case-Shiller Home Price Indices Methodology.
2. Index performance measured through July 2020. Art market data updated as of July 30, 2020.