Art Et Finance (document en anglais)

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Press release

Corinna Trierweiler

Marketing & Communications

Tel: +352 451 452 334

Email: lupress@deloitte.lu

Art and finance services on the rise, according to Deloitte and ArtTactic’s second Art & Finance report

With the global art market on the rise, increasing attention is being paid to the concept of art as an asset class, fostering the development of a new type of professional services in the art and finance industry. This is one of the major conclusions of the Art & Finance report’s 2013 edition, published by the audit and consulting firm Deloitte Luxembourg in conjunction with ArtTactic, which has examined the industry’s development over the past 14 months.1

Heightened appreciation of art as an asset class

“For wealth managers, competition is no longer the main motivation for including art in traditional wealth structuring: the key driver is client demand”, explains Adriano Picinati di Torcello, directeur at Deloitte Luxembourg coordinating the Art & Finance practice.

In the light of the current economic situation, investors are seeking to diversify their portfolios, looking at tangible assets alongside equities and bonds. This is a trend the private wealth management industry cannot ignore, considering that clients are sitting on an estimated US$4 trillion of treasure assets.

As many as 43% of the wealth managers surveyed said they were strongly aware of the developments taking place with regard to art as an asset class, up from 33% in 2011. A majority (60%) of wealth managers believe that we will see even stronger demand in the future for ‘collectible and emotional’ assets. The Deloitte ArtTactic Art & Finance Confidence Indicator - an annual barometer for wealth managers’ sentiments towards art as an investment, art secured lending and the general economic environment in the next 12 months - confirms this positive outlook: from 2011 to 2012, the indicator rose by 32% up to 42.3.

The increasing value of art is triggering the need for new wealth management services to protect, enhance or monetize this value

As a consequence of changing client demand, the role of art in wealth management is evolving and moving from client entertainment to art wealth management services, with only 27% of the wealth managers seeing client entertainment as a primary motivation in the future.

In addition to that, private banks will increase their focus on art and philanthropy in the next two to three years, confirming that this is clearly a growing area of interest for wealth managers. With significant sums involved in the intergenerational transfer of wealth (financial and non-financial assets) that is taking place, wealth managers will increasingly

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