Name of Fund: Art Politico
Fund Overview: Contemporary Photography and New Media Art (both with a focus on contemporary political issues)
Investment Details: Target- $100 m ($75 m institutions), Term: 10 years
Fund Description: Target Returns o f 30-40%
This investment fund will use a diversified strategy and focuses on two market sectors: contemporary photography and emerging new media art. A focus on political issues is the underlying characteristic that will tie the two sectors together. This focus intends to add insurance to the value of the works through their cultural and historical significance.
The optimal allocations for each sector are: photography- 70% and emerging new media art- 30%. This structure of allocations is meant to use contemporary photography as a base, as the photography market has done especially well in recent years and is expected to continue to do so, based on Tosca Photography Fund's 2011 Analysis [4]. New media art acquisitions will be of higher risk, but with the expertise of the advising board, these investments are expected to generate proportionally higher payoffs.
This summary projects that investments will be made until year four, and divestments will be made from years three to ten. These fund will target about $75m or 75% in institutional investments, creating complex financial ties not possible solely with individual investors. For financial security, any purchase greater than 10% of the funds commitments will be subject to approval by the Fund Board. The fund will be registered in the British Virgin Islands to avoid capital gains taxes. The difference saved will be reinvested toward future purchases.
An additional financial strategy will be to loan the works out on exhibition. By placing works with prominent art institutions, the works will acquire another layer of history and cultural value. This strategy is intended to help boost resale prices.
Hiding in the City, by contemporary Chinese artist, Liu Bolin, is an example of the fund's photography investments. For this series, Bolin takes photographs of himself camouflaged to blend in with urban landscapes.
[1]
He intends for his works to show the effects of the city on the people living in them. The works have a strong political agenda. He states, “I experienced the dark side of society, without social relations, and had a feeling that no one cared about me. I felt myself unnecessary in this world. From that time, my attitude turned from dependence into revolting against the system.” [2]. He also uses his work to protest against artistic persecution. He continues, “...contemporary art was in quick development in Beijing, but the government decided it did not want artists like us to gather and live together. Also many exhibitions were forced to close.” [2].
Mona Lisa Meta-data is an example of the new media art that the fund would focus on. The piece was shown at the Second Annual International Art and Science Exhibition and Symposium in Beijing. Users can alter the iconic image by using newly developed optical tracking technology, in which that stated purpose is to “offer one possibility for an even more transparent interface” [3]. But the work also brings into focus larger political issues, such as the dominance of the West and globalization [3].
[3]
Thus, it is works like these that the fund will focus on due to the added value of their social and historical commentaries. While the new media art category is less defined and more volatile, the Art Politico Fund will try to capitalize off its emergent status, as another chapter in the history of artistic development.
Sources:
[1] http://v1kram.posterous.com/liu-bolinthe-invisible-man
[3] http://magazine.art-signal.com/en/one-cache-memory-of-new-media-in-china/
[4] Tosca Photography 2011 fund review.pdf\