Sotheby’s Institute Online Courses : Art as Alternative Investment. Assignment Week 6.

FINAL ASSIGNMENT.

An Art collection has to be done by Passion with philanthropic benefits as supporting new artists and participating in the preservation of cultural heritage.

With its advantageous characteristics, Art has shown a real investment potential despite the opacity and illiquidity of the market. Art is often describe as an self-regulated elite market - knowledge is the key for the challenge of estimation. It hedges for inflation and currency devaluation, and also on uncertain financial market movements with their negative correlations. The favorable tax treatment, the social status and prestige attract new investors.

Passionate of Modern Arts, my £3M portfolio’s profile handpicks abstract Paintings and drawing portraits. Diversified by pioneer artists, these easily tradable artworks will attract a large pool of buyer for potential sales in case of an exit strategy.

As Pablo Picasso in his cubism period or Claude Monet at the emergence of the impressionist movement, I choose artists which are renowned for loans to institutions or for their good ranking in art investment advisory. This potential liquidity could insure financial returns after a long term holding period or recover our principal for an exit strategy.

The collection is located in London and is focusing on auctions at Christie’s and Phillips. Eyes of Specialists and their art selections bring added value to art portfolio. It facilitates our due diligence process as artworks are acquiring with confidence from a reputable source with condition reports. Any works are listed in the ICOM Red List and they come signed - or with certificates - and evaluated by specialists to avoid main art investment risks. I provide a budget of £165,000 for all risks - for replacement value - and title insurances. The art acquisition associated costs reach one third of the budget of my collection.

The masterpiece of the collection, Vue sur le port was painted in 1871 by Claude Monet. The exceptional provenance of Paul Durand-Ruel’s Gallery, known as « The man who mades Monet immortal » and the several

q u o t e s i n c a t a l o g u e s ra isonnées are s t rong internal factors related. W i t h h i s p l e i n - a i r execution and his brush technique, this painting can be seen as the previous experience of the freedom g e s t u r a l o f t h e impressionist movement. The good overall market of the artist and his 6th raking on Artprice in 2014 mark him as a stable artist with only 7,7% bought-in lots

today. Placed on the catalogue’s front page, I allocate a hammer price at £900,000 - for a art value of £1,245,116 after associated costs.

The second major piece, with an allocation of £610,000, is Helmut Newton’s triptych, Walking women. As Photography is a more volatile market, it’s less risky to focus on masterpieces of renowned artists. These photographies which falls within his Big nude studies, stage naked women with a provocative energy bringing out.

Regarding Modern arts, I choose two female portraits: a print of Pablo Picasso, Buste de Femme au Chapeau, and, a drawing of Fernand Léger, Danseuse au tambourin for a Hammer Price of £250,000 per artwork. They are in the Skate’s top 50 artirsts by market value and are well-known for their loans to institutions. Picasso’s has impressive internal factors : the number 1/50 of the print, the authenticity, the provenance and the exceptional condition. The Léger’s drawing - presented on the front page of the catalogue - has also an impressive provenance, the Triton Collection, and featured in his masterpiece La grande parade presented at the Guggenheim Museum.

I also select a watercolor on paper of Ferdinand-Eugène-Victor Delacroix, Cavalier arabe à cheval, dated. He succeeded in capturing the horse’s movement and measuring out color touches and drawing lines. As his artworks are used to be lend at Musée du Louvre and the Old Master sector is less volatile, the allocation will be around £50,000.

I want to promote new artists and select two new Abstract Expressionists for a budget of £12,000 whose one will be bought in a direct private sale and one on the Saachi Gallery online shop. It will be pieces kept at home to reduce the total cost storage which reaches £70,000 per months. Les indécis painted by a french artist, Oliver Marty, is an imposing abstract painting. It is a personal crush, exhibited in a Gallery in Paris. The intense colors and the work on color pigments are very impressive. No. 385, painted by a german artist, Vera Komnig, relays a lot of energy through her brush’s movements.

Starting with a £2,070,000 collection, I plan to subscribe to an art loan - investing in new pieces to build up my collection in value and prestige. I will provide my collection for events and collectors or institutions who want to see it at the storage place which could add more cost per year.

785 Words

Camille Raffenne.

Annexe

This Board represents my art acquisition associated costs. The Buyer’s Premium is calculated with Christie’s and Phillips’s thresholds ( 20% between £30,000 and £1,000,000). I took the VTA of 5% for London and 7% for New York and Paris. The art value is defined as the Hammer price plus the Buyer’s Premium and the VTA.

Concerning the Insurance Costs per year for « all risk », it is calculated with the post VTA art value x 0,25%. For the Title Insurance, I took 6% x post VTA art value for most of the artworks, except the two unknown artists, Vera Komnig and Oliver Marty where I calculated with 1,75%.

For the storage cost, I calculated based on an average cost per months of £30 per cube meters. Artworks bought in auction sales will be storage in the city where they were sold.

Title EstimationHammer

PriceBuyer’s

PremiumVTA

Post VTA Art Value

Art ValueInsurrance Cost/Year

Title Insurance

Storage Cost

Storage location

TOTAL

Buste de Femme au Chapeau

£200,000 – £300,000

250 000 50 000 15 000 300 000 315 000 750 18 000 6 990 London 340 740

Walking Women£474,721 - £610,355

610 000 122 000 51 240 732 000 783 240 1 830 43 920 38 330New York

867 320

No. 385 - 4 340 0 0 4 340 4 340 11 260 0 London 4 611

Vue d'un port£652,174 - £869,565

900 000 180 000 75 600 1 080 000 1 155 600 2 700 64 800 17 480 Paris 1 240 580

Danseuse au tambourin

£181,159 - £253,623

250 000 50 000 21 000 300 000 321 000 750 18 000 5 731 Paris 345 481

Cavalier arabe à cheval

£28,986 - £43,478

50 000 10 000 4 200 60 000 64 200 150 3 600 549 Paris 68 499

Les indécis, horizontaux

- 8 000 0 0 8 000 8 000 20 480 0 London 8 500

PORTFOLIO - 2 072 340 412 000 167 040 2 484 340 2 651 380 6 211 149 060 69 080 - 2 875 731

Bibliographies

Oscar Claude Monet, born in 14 November 1840, was a founder of French Impressionist painting, and the most consistent and prolific practitioner of the movement's philosophy of expressing one's perceptions before nature, especially as applied to plein-air landscape painting. In 1874, Monet created with Pierre-Auguste Renoir, Alfred Sisley, Camille Pissarro, Edgar Degas et Berthe Morisot the Société Anonyme des Artistes, which embraced the avant-garde techniques that were continually rejected by the salons; Monet’s famous work Impression, Sunrise was exhibited at their first group show Monet later moved to Vétheuil where he exhibited his work. In 1890 Monet moved to his home in Giverny, painting scenes of his garden as well as his famous series of water lilies, which achieved an aesthetic bordering on abstraction towards the end of his life. Monet died in Giverny in 1926, at 86 years old.

Helmut Newton, born in 31 October 1920, was a German-Australian photographer. He is most famous for his work as a fashion photographer, frequently creating work for Vogue magazine, and for his provocative, studied photographs of nudes. In Paris he began working for French Vogue, and later Playboy, Elle, and other publications during the 1950s and 1960s as his reputation grew, traveling frequently throughout the world on assignments. Known for the dramatic lighting and the unconventional poses of his models in his photographs. He focused more on these images rather than fashion photography in the 1970s, emphasizing the aggressive and incendiary in his works. He continued to travel later in life. In 2003, he died in a car crash in Los Angeles, at 84 years old.

Pablo Picasso, is one of the most prominent, innovative artists of the 20th century, is celebrated for his lengthy and prolific career working in several modernist idioms, as well as for co-founding Cubism. Picasso was born in Málaga, Spain, and began drawing and painting early on under the influence of his father, an academic painter. Picasso further developed Cubism, a revolutionary aesthetic in which artists attempted to capture multiple views of an object simultaneously, abstracting the subject matter in the process. Towards the 1920s, Picasso returned to more representational works, depicting classical figures and landscapes while dividing his time between Paris and Barcelona. In the mid-1940s, Picasso moved to France, where he created an astounding number of paintings, prints,

sculptures, ceramics, and works on paper during the next few decades. In 1973, Picasso died in Mougins, at 92 years old, and is renowned today as one of the pioneering and most influential forces of 20th-century modernism.

Fernand Léger born in February 4, 1881, was a French painter, sculptor, and filmmaker. In his early works he created a personal form of cubism which he gradually modified into a more figurative, populist style. His boldly simplified treatment of modern subject matter has caused him to be regarded as a forerunner of pop art. He continued to travel and produce works in various media until his death in 1955

Ferdinand Victor Eugène Delacroix was a French Romantic artist regarded from the outset of his career as the leader of the French Romantic school. Delacroix's use of expressive brushstrokes and his study of the optical effects of color profoundly shaped the work of the Impressionists, while his passion for the exotic inspired the artists of the Symbolist movement. A fine lithographer, Delacroix illustrated various works of William Shakespeare, and of others.

Olivier Marty born and living in France, He is passionate of Nature and landscape, travels around to be inspired by urban planning, industrial landscape but also by meeting people and collecting information. He used different type of materials for his expression and collaborations, as videos, drawings and paintings.

Vera Komnig, born and living in Germany, is a professional artist who specializes in expressive acrylic and oil paintings. She is a certified graphic designer and award winner: Federal award for outstanding artistic achievements. In the 1990s, she invented the so-called "Scripturas", a series of acrylic paintings with graphic elements from airbrush ink.

Souces

Buste de Femme au Chapeau http://www.christies.com/lotfinder/prints-multiples/pablo-picasso-buste-de-femme-au-chapeau-5876257-d e t a i l s . a s p x ?from=salesummary&intObjectID=5876257&sid=4dfa7eea-2490-4347-8a2c-43e9137d326f

Walking Women http://www.phillips.com/detail/HELMUT-NEWTON/NY040015/8

No. 385 h t t p : / / w w w. s a a t c h i a r t . c o m / a r t / P a i n t i n g -No-385/695057/2299869/view

Vue d'un port http://www.christies.com/lotfinder/paintings/claude-m o n e t - v u e - d u n - p o r t - 5 8 7 9 3 1 8 - d e t a i l s . a s p x ?from=salesummary&intObjectID=5879318&sid=405408e0-e9f8-4a4b-a849-5a3a7ad3767b

Danseuse au tambourin ht tp : / /www.chr i s t i es .com/ lo t f inder /d rawings-w a t e r c o l o r s / f e r n a n d - l e g e r - d a n s e u s e - a u -t a m b o u r i n - 5 8 7 9 1 7 1 - d e t a i l s . a s p x ?from=salesummary&intObjectID=5879171&sid=7023d0e6-7bc5-444f-b44c-22c9969a1aa2

Cavalier arabe à cheval ht tp : / /www.chr i s t i es .com/ lo t f inder /d rawings-watercolors/ferdinand-eugene-victor-delacroix-cavalier-a r a b e - a - c h e v a l - 5 8 7 9 1 9 8 - d e t a i l s . a s p x ?from=salesummary&pos=2&intObjectID=5879198&sid= 9 d 9 d 6 a 4 7 - f 4 a a - 4 a f 9 -a05d-34a95f2e5b08&page=4&lid=1

Les indécis, horizontaux h t t p : / / w w w. o l i v i e r - m a r t y. f r / c a t e g o r i e . p h p ?id_cat=8&ss_cat=14&id_photo=56