| Hedge your bets with an alternative investment |
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The world’s first art fund with a hedging mechanism has been launched by Guernsey-regulated Artistic Investment Advisers Ltd The fund, known as The Art Trading Fund, has a minimum investment of £100,000 and is aimed at high net-worth individuals and institutional investors. It seeks to challenge the traditional ‘buy and hold’ business model of investment funds, instead offering investors a liquid, and credible, high return opportunity over a three-year closed end period. The fund will target annualised returns of 30 per cent, based on back tested results of the investment adviser’s track record. It will also aggregate primary and secondary art markets, the first and only fund to do so, buying and selling through a global network of dealers, artists, auction houses and galleries.  Mrs. James Warren (Mercy Otis) by John Singleton Copley/ American 1763 Founding partner of Artistic Investment Advisers, Chris Carlson, said: “Traditionally, investment funds concentrating on art as an asset class have ignored the opportunities provided by market timing and active trading. Our strong artistic and financial expertise means that we are able to take advantage of this opportunity. “By launching the first art fund with a hedging mechanism, we are meeting investors’ desire to invest in an alternative asset class, but one that is not reliant on stocks or bonds which, as the market is becoming more saturated, are not providing the high returns they once were.” The firm are focussing on three core strategies that incorporate the Impressionist, Post-Impressionist, modernist and contemporary art markets. Justin Williams, another founding partner added: “ We are experiencing a four year equity boom market, resulting in a rise in global liquidity. In turn those interested in investing in art have created a buoyant market for buying and selling. “Apart from America and Europe, this liquidity is also being fuelled by the ‘BRIC’ countries of Brazil, Russia, China and India – by utilising our global reach we are confident that the fund will reach capacity by the |
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