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Artprice100©: The Art Market’s Blue-chip Artists Yield Nearly as Much as the Top Performing Companies in the American Economy

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thierry Ehrmann, Artprice’s founder/CEO, highlights the art market’s excellent performance in H1 2019: “A collector who, at the start of this year, invested in the 100 most successful artists of the last five years (2014-2018), would already be looking at a value accretion of almost a sixth in the value of his/her portfolio.”

The Artprice100 © index gained +16% over the first half of 2019 while the S&P 500 added +18% over the same period. The similarity in the performances between the American financial markets and a portfolio of works by the world’s top performing artists (defined in a purely objective manner) proves the undeniable attractiveness of the Art Market as an alternative investment.

Fewer transactions

The performance of the Artprice100© over the first half of 2019 was driven by exceptionally strong demand, barely satisfied by supply. The supply/demand imbalance, generated a rapid increase in value, particularly on works by the 100 top performing artists on the global secondary art market.

The turnover slowdown recorded in H1 2019 by major auction houses, including Sotheby’s (-9%) and Christie’s (-28%), reflects a less dynamic high-end market than in previous years. However, prices have shown no signs of fatigue and the contraction in the volume of sales is a reminder that the art market is directly dependent on the number of works in circulation.

In a financial context of sustained negative or near-zero refinancing rates, some collectors are probably preferring to hold certain artworks and not cash in on investments that remain highly competitive. Moreover, the persistence of extremely high transaction costs, both in galleries and in auction rooms, is discouraging short holding periods (under five years), and tempting some collectors to consider private transactions as an alternative.

The Artprice100© index driven by Warhol, Zao Wou-Ki and Wu Guanzhong

Heavily weighted in our Artprice100© index with 9.1% of the portfolio, Pablo Picasso has not contributed to its value accretion for several years. As we have seen over the last four years, his prices contracted -2% in the first half of 2019.

However, Andy Warhol, Fu Baoshi, Zao Wou-Ki and particularly Wu Guanzhong have all clearly enjoyed value accretion, providing the main thrust for the progression of our Artprice100© index in H1 2019. Without setting any new auction records, these artists have all enjoyed strong price inflation. The sale of major works by these artists will no doubt confirm the trend.

On 2 June last, a large drawing by Wu Guanzhong entitled Lion grove garden (1988) fetched $20.8 million at China Guardian. It was previously acquired for $17.8 million on 3 June 2011 at Poly Beijing. Adding 17% over the last eight years, the drawing generated, in financial terms, an average annual return of +1.9%. However, another Guanzhong resale suggests that the bulk of the value accretion on his works has occurred in the last 6 months: an important Guanzhong work entitled Two Swallows was purchased for $7.1 million on 3 June 2011 (at the same sale as Lion grove garden) and fetched $7.8 million in December 2018, an increase of just +9.8%.

Paul Cézanne and George Condo

Investments in Modern artists carry the least risk and demand for their work is continuing to grow steadily offering attractive returns over the long term. Claude Monet and Paul Signac have both signed new auction records this year. Similarly, 2019 is already proving to be a superb year (the best since 2000) for Paul Cézanne. His painting Bouilloire et fruits (c. 1888-90), acquired for $29.5 million in 1999, fetched $59.3 million on 13 May 2019 at Christie’s New York, generating an average annual ROI of 3.6% over 20 years.

At the other end of the spectrum, Contemporary artists offer striking returns in the medium and short term. The most spectacular entry into the composition of the Artprice100© index this year is undoubtedly George Condo. The American artist enjoyed a massive secondary market success in 2018with 78 paintings and 34 drawings selling for more than $63 million, and on three continents (America, Europe and Asia)! The Condo phenomenon has been clearly illustrated by a number of rapid resales of small works including Soft Green Abstraction (1983), which was purchased for $17,000 in April 2017 in Munich and resold a year later in New York for $46,000.

In total, there were seven changes this year in the composition of the Artprice 100© index.

In

Out

George Condo

Huang Binhong

Giorgio Morandi

Huang Zhou

Robert Motherwell

Anish Kapoor

Jean Paul Riopelle

Li Keran

Rufino Tamayo

Xu Beihong

Frank Auerbach

Pieter Brueghel II

Hans Arp

Giorgio de Chirico

Four women… and two Old Masters

Unfortunately, we see no change regarding female artists. This year again, only four of the artists in the Artprice100© are women: Yayoi Kusama (Japan), Joan Mitchell (US), Louise Bourgeois (France) and Barbara Hepworth (UK). Yayoi Kusamanow represents 1.3% of the index compared with 0.9% last year. Her price index rose 20% in H1 2019.

The relegation of Pieter Brueghel II for reasons relating to market liquidity has exacerbated the rarity of Old Masters in the index. Numerically, the composition of the index is dominated by Modern artists, numbering 49, followed by Post-War artists (29), Contemporary artists (12), 19th century artists (8) and lastly… Old Masters (only 2).

Composition of Artprice100© index for H1 2019

Artist – Share – Period

  1. Pablo PICASSO (1881-1973) – 9.1% – Modern
  2. Andy WARHOL (1928-1987) – 6.4% – Post-War
  3. Claude MONET (1840-1926) – 4.5% – 19th Century
  4. QI Baishi (1864-1957) – 3.9% – Modern
  5. Jean-Michel BASQUIAT (1960-1988) – 3.7% – Contemporary
  6. Gerhard RICHTER (b. 1932) – 3.3% – Post-War
  7. ZAO Wou-Ki (1921-2013) – 2.9% – Post-War
  8. FU Baoshi (1904-1965) – 2.5% – Modern
  9. Alberto GIACOMETTI (1901-1966) – 2.4% – Modern
  10. Amedeo MODIGLIANI (1884-1920) – 2.2% – Modern
  11. Cy TWOMBLY (1928-2011) – 2.2% – Post-War
  12. WU Guanzhong (1919-2010) – 2.1% – Modern
  13. Roy LICHTENSTEIN (1923-1997) – 2.0% – Post-War
  14. Lucio FONTANA (1899-1968) – 1.9% – Modern
  15. Alexander CALDER (1898-1976) – 1.8% – Modern
  16. Marc CHAGALL (1887-1985) – 1.8% – Modern
  17. Joan MIRO (1893-1983) – 1.7% – Modern
  18. Willem DE KOONING (1904-1997) – 1.7% – Modern
  19. Henri MATISSE (1869-1954) – 1.5% – Modern
  20. Fernand LÉGER (1881-1955) – 1.4% – Modern
  21. Christopher WOOL (b. 1955) 1.4% – Contemporary
  22. Yayoi KUSAMA (b. 1929) – 1.3% – Post-War
  23. Jean DUBUFFET (1901-1985) – 1.3% – Modern
  24. René MAGRITTE (1898-1967) – 1.2% – Modern
  25. Peter DOIG (b. 1959) – 1.2% – Contemporary
  26. Wassily KANDINSKY (1866-1944) – 1.2% – Modern
  27. Jeff KOONS (b. 1955) – 1.2% – Contemporary
  28. David HOCKNEY (b. 1937) – 1.1% – Post-War
  29. Henry MOORE (1898-1986) – 1.0% – Modern
  30. LIN Fengmian (1900-1991) – 0.9% – Modern
  31. CHU Teh-Chun (1920-2014) – 0.9% – Post-War
  32. Paul GAUGUIN (1848-1903) – 0.9% – 19th Century
  33. Pierre-Auguste RENOIR (1841-1919) – 0.8% – 19th Century
  34. SAN Yu (1895-1966) – 0.8% – Modern
  35. Richard PRINCE (b. 1949) – 0.8% – Contemporary
  36. Sigmar POLKE (1941-2010) – 0.7% – Post-War
  37. Joan MITCHELL (1926-1992) – 0.7% – Post-War
  38. PU Ru (1896-1963) – 0.7% – Modern
  39. Auguste RODIN (1840-1917) – 0.7% – 19th Century
  40. Edgar DEGAS (1834-1917) – 0.7% – 19th Century
  41. Paul CÉZANNE (1839-1906) – 0.7% – 19th Century
  42. Yves KLEIN (1928-1962) – 0.6% – Post-War
  43. Camille PISSARRO (1830-1903) – 0.6% – 19th Century
  44. Richard DIEBENKORN (1922-1993) –  0.6% – Post-War
  45. Ed RUSCHA (b. 1937) – 0.6% – Post-War
  46. Keith HARING (1958-1990) – 0.5% – Contemporary
  47. Martin KIPPENBERGER (1953-1997) – 0.5% – Contemporary
  48. Louise BOURGEOIS (1911-2010) – 0.5% – Modern
  49. Alberto BURRI (1915-1995) – 0.5% – Modern
  50. Frank STELLA (b. 1936) – 0.5% – Post-War
  51. Damien HIRST (b. 1965) – 0.4% – Contemporary
  52. Egon SCHIELE (1890-1918) – 0.4% – Modern
  53. Ernst Ludwig KIRCHNER (1880-1938) – 0.4% – Modern
  54. Georges BRAQUE (1882-1963) – 0.4% – Modern
  55. Georg BASELITZ (b. 1938) – 0.4% – Post-War
  56. Pierre SOULAGES (b. 1919) – 0.4% – Modern
  57. Juan GRIS (1887-1927) – 0.4% – Modern
  58. Salvador DALI (1904-1989) – 0.4% – Modern
  59. Edvard MUNCH (1863-1944) – 0.4% – Modern
  60. Paul SIGNAC (1863-1935) – 0.4% – Modern
  61. DONG Qichang (1555-1636) – 0.4% – Old Master
  62. Fernando BOTERO (b. 1932) – 0.4% – Post-War
  63. WEN Zhengming (1470-1559) – 0.4% – Old Master
  64. George CONDO (b. 1957) –  0.4% – Contemporary
  65. Sam FRANCIS (1923-1994) – 0.4% – Post-War
  66. Alighiero BOETTI (1940-1994) – 0.4% – Post-War
  67. Bernard BUFFET (1928-1999) – 0.4% – Post-War
  68. Max ERNST (1891-1976) – 0.4% – Modern
  69. Robert RAUSCHENBERG (1925-2008) – 0.4% – Post-War
  70. CHEN Yifei (1946-2005) – 0.3% – Contemporary
  71. Maurice DE VLAMINCK (1876-1958) – 0.3% – Modern
  72. Barbara HEPWORTH (1903-1975) – 0.3% – Modern
  73. Pierre BONNARD (1867-1947) – 0.3% – Modern
  74. Donald JUDD (1928-1994) – 0.3% – Post-War
  75. Max BECKMANN (1884-1950) – 0.3% – Modern
  76. Tsuguharu FOUJITA (1886-1968) – 0.3% – Modern
  77. Alfred SISLEY (1839-1899) – 0.3% – 19th Century
  78. Laurence Stephen LOWRY (1887-1976) – 0.3% – Modern
  79. Morton Wayne THIEBAUD (b. 1920) – 0.3% – Post-War
  80. Nicolas de STAËL (1914-1955) – 0.3% – Modern
  81. Enrico CASTELLANI (1930-2017) – 0.3% – Post-War
  82. Anselm KIEFER (b. 1945) – 0.3% – Contemporary
  83. Michelangelo PISTOLETTO (b. 1933)  – 0.3% – Post-War
  84. GUAN Liang (1900-1986) –  0.3% – Modern
  85. Kees VAN DONGEN (1877-1968) – 0.3% – Modern
  86. Francis PICABIA (1879-1953) – 0.3% – Modern
  87. Piero MANZONI (1933-1963) – 0.3% – Post-War
  88. Tom WESSELMANN (1931-2004) – 0.3% – Post-War
  89. Giorgio MORANDI (1890-1964) – 0.3% – Modern
  90. Günther UECKER (b. 1930) – 0.2% – Post-War
  91. Josef ALBERS (1888-1976) – 0.2% – Modern
  92. Robert MOTHERWELL (1915-1991) – 0.2% – Modern
  93. Rufino TAMAYO (1899-1991) – 0.2% – Modern
  94. Hans ARP (1886-1966) – 0.2% – Modern
  95. Emil NOLDE (1867-1956) – 0.2% – Modern
  96. Paul KLEE (1879-1940) – 0.2% – Modern
  97. Jean-Paul RIOPELLE (1923-2002) – 0.2% – Post-War
  98. Alexej VON JAWLENSKY (1864-1941) – 0.2% – Modern
  99. Albert OEHLEN (b. 1954) – 0.2% – Contemporary
  100. Frank AUERBACH (b. 1931) – 0.2% – Post-War

 

SOURCE Artprice.com

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SIGEF Brings Inclusion to Davos and a Supportive Vision for a Smarter Future for the World

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SIGEF by Horyou: 22nd of January at Kirchner Museum in Davos

 

Sharing the same concerns and goals with the leaders of the global economy who will be gathering in Davos to pave the way “for a Cohesive and Sustainable World,” SIGEF by Horyou has opted to showcase its own commitment to sustainability through the organization of a side-event to offer a complementary and supportive inclusive vision for a better world.

Building on its “Together Shaping a Smarter Future” theme, SIGEF will add social innovation and global ethics to the Davos gathering. The event will take place on the morning of the 22nd of January at the Kirchner Museum. It will kick off with a networking breakfast. Four panels will make the program of the event. They will tackle some of the most challenging issues that the global economy is faced with.

Disruptive Technologies, the Future of Finance, the UN Sustainable Development Goals and Women Empowerment are the topics to be debated. “SIGEF has always been tackling the most important global issues and we are thrilled to initiate high-level discussions around them before Davos’ qualified audience. In the wake of this new technological age, we aim to contribute to the building of a smarter future for the world as we are bringing together, in their diversity, some of the actors who are leading the positive changes we want to see,” says Yonathan Parienti, founder and CEO of Horyou, organizer of SIGEF.

Some of the confirmed SIGEF Speakers include: Ms Karen Wilson, OECD Strategic Partnerships, Ms Katja Iversen, President of Women Deliver, Mr Charles Bendotti, Senior Vice President People & Culture Philip Morris International, Mr Jérôme Perez, Global Head of Sustainability Nespresso, Ms Ann Cairns, Executive Vice Chairman Mastercard, Ms Christine Spite, Tech entrepreneur and WWF Advisor, Dr. Nikolaus S. Lang, Managing Director and Senior Partner at Boston Consulting Group, Mr Xiaochen Zhang, President of FinTech4Good, Mr Adi Mimran, Venture Partner Cyrus AI, Dr Tomabechi, Innovator and Tech entrepreneur, Ms Vera Futorjanski, Innovation Expert and Advisor, Mr Vincent Subilia, Director General, Geneva Chamber of Commerce & Member of the Geneva Parliament, Anna Kletsidou, Head of Social Sustainability & Human Rights at Philip Morris International.

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Outlook for Canada’s venture capital market remains robust: KPMG in Canada

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Photo source: goingconcern.com

 

Canada’s venture capital (VC) market crossed the US$1-billion threshold in the fourth quarter for the second time in a row to finish 2019 at an all-time record of US$4.6 billion, according to KPMG Private Enterprise’s quarterly Venture Pulse report, a global analysis of venture funding.

“It is really a testament to the growing maturity of Canada’s venture capital ecosystem,” says Sunil Mistry, partner, KPMG in Canada. “The tech ecosystem in Canada is now more independent and self-sustaining than ever before. I don’t anticipate deal activity slowing down anytime soon.”

Canadian VC investment totalled US$1.17 billion in the fourth quarter, up 30 per cent from the year-earlier period and down 34 per cent from a record high of US$1.77 billion in the third quarter. The number of closed deals were lower at 109, compared to 151 in the previous quarter, but were bigger in size.

The fourth quarter was powered by sizeable deals from 1Password, a Toronto-based password manager, Coveo, a Quebec City-based artificial intelligence startup, and Nuvei, a Montreal-based payment processing company.

“The Coveo funding round highlights the strength of Canada’s AI innovation ecosystem, which has spread well beyond its traditional innovation hubs of TorontoVancouverMontreal, and Waterloo,” says Mr. Mistry. “At a sector level, fintech continues to be a dominant area of interest for investors – both from an investment perspective and from an M&A perspective – in part due to the strength of Canada’s banking and financial services sectors.”

Family offices continue to play a key role in Canada’s VC market, particularly in early-stage deals between US$1 million and US$5 million, he says.

Despite global economic headwinds, trade disputes, and potential uncertainty from this year’s U.S. Presidential election, the outlook for VC investment remains positive. “I don’t see much changing going into at least the first half of this year,” says Mr. Mistry. “A lot of funds already have their next fund monetized. They need to spend the money, and they’re looking to stay away from any volatility in the public markets.”

The U.S. remains the epicenter of VC activity, accounting for more than half of global VC investment in 2019, the report says. As 2020 unfolds, deal activity is expected to remain relatively steady, with areas like artificial intelligence, biotech, and fintech remaining very hot. According to the report, private valuations in the U.S. remain near-unprecedented highs, similar to if not eclipsing those seen during the dot-com era, driven in part by availability of capital.

While there are no signs of activity slowing, U.S. investors are becoming more discerning about where they put their money after mixed results from last year’s debuts of newly public companies. “We’re already starting to see investors pay a lot more scrutiny on the unit economics and business models,” says Mr. Mistry.

Unlike in the U.S., valuations in Canada continue to be competitively priced, which is helping to attract U.S. investment and fuelled later-stage funding. “Investors will keep investing where the economic climate makes the most sense, where the deal sizes are more reasonable, and where the venture ecosystem is reliable, and Canada checks off all of those boxes,” says Mr. Mistry.

 

SOURCE KPMG LLP

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ID Ventures Partners with Google Developers Launchpad to Accelerate Michigan’s Tech Startups

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ID Ventures, the venture team of Invest Detroit, announced today that it has been selected by Google Developers Launchpad to be its first continental U.S. partner in providing scaling resources to local and statewide startups.

Operating a global acceleration network across Latin AmericaAfricaEuropeAsia and Puerto Rico, Google Developers Launchpad will work in conjunction with ID Ventures, Michigan’s most active seed-stage investment team, to leverage talent, programming and services for economic growth.

The ID Ventures Powered by Google Developers Launchpad initiative will provide an opportunity for Michigan startups to access Google’s global network, insights from the company’s Silicon Valley-based startup programs, and 20 years’ worth of Google research and best practice insights on building businesses, products and teams at massive scale. ID Ventures was chosen because of Michigan’s robust startup ecosystem in which the team is firmly rooted, providing capital, programs, mentorship opportunities and support to early-stage startups in Detroit and across the state.

“This is truly a win for our local startup community,” said Patti Glaza, managing director of ID Ventures and executive vice president of Invest Detroit. “The partnership will give access to industry experts, startup training and needed services that will help our companies scale and successfully exit, moving us even closer to our vision of making Michigan a startup and technology hub for the Midwest.”

Markets outside of Silicon Valley are increasingly impacting the global startup and technology ecosystem. Though it is easier than ever to start a company, access to success methodologies, expert mentors, and ecosystem best practices for building companies remain unevenly distributed. As Google is a thought leader in building and scaling products and businesses using the most advanced technologies, this partnership and its resources will help ID Ventures’ portfolio companies, which includes some of the fastest-growing companies in Michigan, and other startups in the community scale exponentially.

Google Developers Launchpad focuses on developing companies and their ecosystems over the long term.

“Google is thrilled to expand our partnership with ID Ventures and its exceptional startup portfolio” said Kevin O’Toole, Google’s Head of International Growth for Launchpad. “The Powered by Google Developers Launchpad program is about empowering startup communities around the world and helping them leverage each other for insights and resource sharing. We are thrilled to expand this program into Detroit and the state of Michigan.”

 

SOURCE ID Ventures

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