Art Banking

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Interview with CEO of "Art-Finance Marina Sitnin at RBC

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«Art Market is similar to terrorism"
Interview with CEO of "Art-Finance Marina Sitnin
Art-banking, investment management in the art market, these days is rapidly growing. General Director of "Art-Finance MARINA Sitnin told the correspondent of RBC daily VERONICA Gudkov about the prospects of investment in modern art and that is why in times of crisis Rubens painting is better than shares.

- What is the current state of the world market of art-banking?

- Art-banking - one of the directions of the so-called wealth management, aimed at wealthy private clients. This development of the industry with a fairly long history, although I must say that investors began to seriously pay attention to the art market until the second half of last century. They began to form foundations, for example in the 70's was formed later became a famous British fund railways - one of the most successful examples of profitable investment in the art market. Now there are about 50 investment funds, investing in art objects.

- Are there many banks now involved in this kind of activity?

- In the West, very much. In Russia, I say without exaggeration, Gazprombank first announced the service and proceeded to implement it. We hope that it will be increasingly in demand in our country.

- Someone from the other Russian banks followed your example?

- It is quite a lot of banks advertises and art-banking and collective investment funds. Some financial companies have indicated that they are preparing for the establishment of mutual funds. In times of financial crises are always increasing interest in alternative investments and markets, not correlated with the stock. Investors trying to find some refuge, where the capital will be saved, that is to invest in eternal values. So it was in the Great Depression, and the crisis in the 80's, what we saw in 2007, when the crisis in the financial market in the U.S. started a worldwide crisis. The turnover of the art market and the volume of investment in such periods grow: if you bought a good Rembrandt, he will not disappear. Perhaps in the financial market collapsed and the investor of its shares remained only entry in the registry, and Canaletto remain the same as it was for a long, very long time.

- Russia's bankers and individuals feel secure this type of investment?

- Western bankers and investors, of course, relate to this market is absolutely serious. Analysts of investment units of banks provide recommendations that the client should diversify assets and part of the funds spent on the Art Market. As for Russia, unfortunately, here with great care, great ignorance, or more suspicious of such investments, although the process of implementing them is skyrocketing.

In Russia there is no "pure" because investors, so to speak, spiritual process, and it is connected to the national love for art. That man loves, he can not, say, is cynically evaluated simply as an asset. When it comes to conventional investments, the client chooses the object of investment, assess its investment attractiveness. And we are not talking about that he will buy shares of chemical plant, because it does not like chemistry, it is unpleasant to him. And when it comes to art, there are emotional factors. Anyone who likes only the old masters, it is difficult to invest in the work of contemporary artists. While investment is a wonderful facility.

- When, in your opinion, the market niche art-banking in Russia is full?

- On the western market infrastructure and ways of investing technologically and more comfortable than ours. For example, there are no restrictions on the import or export of works of art, the turnover is absolutely free. We have liberalized the law, in particular, if you get a piece of art for personal purposes and not for commerce, then you can import it without a fee. You can easily export an item under a hundred years, but no more. The ban on the export and inhibits import: people who buy art, they want to own them and be able to dispose of, and if the object can not remove, sell, it is already part-ownership.

- What other problems for the art-banking in Russia?

- Lack of credit facilities. Overseas gallery owners say that they have an agreement with the old private sector banks: gallery, let's say there 300 years and 300 years of interacting with a certain bank, which credits the buyer with no discount on the security work of art on the full value of work. This facilitates the customer decision to buy. In Russia, this no.

- Art bankingovye companies are helping the importation of works of art?

- Of course. They awaken interest in collecting, facilitate the buying process. If you explain to the buyer that he would rather open a directory, specify the lot number and determine the amount he is willing to pay, and then painting it delivered and hung on a nail, where it will show, this is much easier than if he were alone to deal with registration at the auction, export sales, delivery, insurance.

- What are the artists and of art are most in demand from domestic collectors and investors?

- Russian. This is normal: National Arts and causes concern and patriotism. But in general it is a matter of personal predilections. I say, I love the Silver Age artists, Benois, Somov. It is important to form your own taste and be guided by them. For the collector investment aspects are important, but secondary. A "pure" investor trust the professionals and not looking at the picture, but on the schedule changes in cost parameters that option too.

- What is the difference in annual growth in prices for old and new art?

- Huge. Modern growing faster. Although this is the same art, the growth of prices depends on the quality of work, the name of the artist. And there is the problem of undervaluation of the old masters. As the saying goes, a good Canaletto is always a good Canaletto. And this is a limited segment, growth in supply will not be on it: there are so many paintings as there are, Rubens and Brueghel no longer write. This limb of the asset gives it an extra investment attractiveness.

In general, the art is multifaceted. In addition to painting a statue - an interesting art form, but less popular in terms of investment. There are things that at first sight not directly related to the art market, such as numismatics, ancient Russian coins. Amazing rise in price, excellent yield. Furniture - also an interesting trend, particularly Art Deco. In Russia, unfortunately, this niche has not been developed, unlike the West, where people are happy to buy antique furniture of different styles and eras. But the mind, of course, mostly painting, and for the most modern.

- Hearst, for example, popular and rapidly increasing in price, because they know it all, and in Bruegel not understand?

- No wonder in a popular book today noted that the market for art is similar to terrorism: the two can not exist without the media. I think that contemporary art is over-hyped.

- One of the most bustling collection and exhibition of projects related to investments in art - gallery Dasha Zhukova. You can somehow comment on this story?

- As far as I remember, she was called Kabakov retrospective. This is probably the most famous, venerable, expensive and revered of living Russian artists. His show in Russia, the Hermitage, many years after his departure to the West, but Moscow did not show, and this retrospective exhibition - the event in cultural life, promising a huge impact. In general, the investment of our compatriots in the art, if it's open society, an important social and - I think many will agree - a positive development. Ten years ago, people seriously collecting art, you could count on the fingers, but now their number is constantly growing, and it's wonderful.

- And as things stand now with the examination of works of art?

- This problem throughout the world is quite acute. But in the West, more developed, mature institutions expertise, personal responsibility experts. This responsibility, of course, more reputational, because it is difficult to imagine an adequate compensation errors at the cost of several million dollars. But the reputation they hold dear. On the other hand, anyone can make mistakes ... In addition to the indispensable expert eyes have the technological expertise, history of exposure - fake paintings usually do not appear on major exhibitions, there are catalogs reason. There are many factors in evaluating the authenticity. Russia's experts for the most part, as in the West, people with great experience, with the names and reputation, which they have worked long and cherished.

- What do you recommend to potential clients?

- Valuing our past. Remember how throwing furniture birchwood and I was first on the Yugoslav wall, and then at IKEA? They burned all the wardrobes secretaires, which were considered a sign of the petty bourgeoisie and the bourgeois. Now, I think the taste for a respectable antiquity, people will return. There is a global trend: the most famous interior designers naturally combine furniture and antiques - family heirlooms customers - with modern chrome, plastic, photography, something else. This identity, charm and originality of the interior. We have such a fusion has not yet become a fundamental trend.

In Britain, taken furnish the house uneven furniture, creating the impression that all this was passed from grandmother to grandchildren. There is a famous phrase of one of Gdańsk conservative politician who wanted to humiliate his colleague: "What do you want from a man who himself bought his own furniture", hinting at the fact that there is no inheritance. Incidentally, we periodically review customer in different market segments of art, furniture market, according to different eras and styles, we suggest that, on that note, as with art, and from the investment point of view, give advice on how to prevent forgery, and etc. It is important to closely monitor the market to perceive it as a source of constant spiritual pleasure, and not only a good investment. You always have to remember that a good Canaletto is always a good Canaletto, that this investment, to improve social status. Whatever happened to the collector, his Canaletto left his children and grandchildren.

18.07.2008