Art Funds

Filed in archive Hedgetalk on June 10, 2009

According to Friedrich Kiradi, head of Merit Alternative Investments GmbH and director of the world-wide first Art Photography Fund. "Investments in material assets such as real estate, commodities, as well as art, continues to be an area that investors seem to be focusing on, with the growing importance of 'art investment' as bridge between the art and finance world." In addition to the financial gains as an investor in the Art Photography Fund, holders are by request able to experience an "emotional yield" in receiving actual works held within the fund upon redemption. The Art Photography Fund has gained more than 15% since inception in March 2008.

"We are convinced that there are better opportunities for investing in sectors or artists that are currently not being 'hyped'; but rather recognised pieces equalling the standard of works displayed in museums by 'blue chip' artists", according to Johannes Faber, gallery owner and advisor to the fund. The performance of the Art Photography Fund has supported his argument, with the fund closing the rump year 2008 up 11.68% and gaining +3.11% in 2009 as of the end of May. With this, the fund was not only able to outperform equity and fixed income markets, but also various art market indices.

Art Funds as an Alternative Asset Class