Wealth Management Americas released today a
new report that shows a majority of collectors of fine art view
their art collections as a pursuit of passion rather than as an
investment. In a special Investor Watch Pulse Report, released during
Art Basel in Miami Beach, UBS studied the attitudes and behaviors of
fine art collectors. The report, titled "For
the love of art,” found that despite recent high profile sales of
fine art at auction houses this year, such as Leonardo da Vinci's,
"Salvator Mundi, c. 1500" and Basquiat's "Untitled, 1982," 65% of
investors noted they have never sold a piece from their collection, and
41% confessed they have never had their collection appraised.
Art collectors opt for passion over investment
When it comes to collecting behaviors, art collectors find themselves
driven by an appreciation for beauty (71%), a desire to follow their
passions (54%) and a wish to support and nurture artists (32%).
Moreover, one quarter of investors consider their collections to be
priceless, further emphasizing the fact that passion, rather than
profit, is a motivating factor.
"Collecting is a passion that we share with many of our clients who are
developing alternative legacies through their cultural pursuits.
Collectors don’t apply the same principles to buying art that they would
to a typical investment portfolio of stocks and bonds,” said John
Mathews, Head of Private Wealth Management and Ultra High Net Worth, UBS
Americas. "It is important, however, to institute management structures
to ensure their legacy remains protected, correctly valued and insured.”
Collectors overwhelmingly seek purchase advice from alternative
Eighty-eight percent of collectors do not use an art advisor to guide
their purchases. The report found that the collector’s first step in the
purchase journey is to seek advice from other sources. Sixty-two percent
of collectors cite using galleries to educate themselves on fine art
purchases. This is followed by online resources (60%), museums (50%) and
magazines (44%). Most surprisingly, one in four collectors admit to
purchasing art online, sight unseen. This gravitation toward alternative
sources, in particular digital, underscores the evolution of the art
buyer's journey and how the industry will need to adapt to keep pace.
Heirs’ attitudes vary on maintaining a collection’s legacy
The data also presents evidence that passion for art transcends
generations, whereas other collections (coins, stamps, jewelry) do not.
Collectors of fine art, overwhelmingly, plan to leave their art to heirs
rather than sell it (87%). According to the report, 90% of heirs felt
"honored" to inherit an art collection, and 81% intend to keep it. In
contrast only 35% of heirs who received other collectibles, including
coins, stamps and jewelry, were interested in it, according to a recent
Investor Watch Report called "For
love not money," published November 9, 2017.
Yet, despite the interest in maintaining a legacy, 57% of art collectors
have not taken steps to educate their heirs on how to manage, appraise
and/or sell their collection.
"We’re seeing sentimental value tends to supersede financial value,”
said Sameer Aurora, Head of Client Strategy, UBS Wealth Management
Americas. "Collectors do not appear driven by the monetary worth of
their art collection, and therefore are often unaware of its true value.”
Notes to Editors:
About UBS Investor Watch
UBS Wealth Management Americas surveys U.S. investors on a quarterly
basis to keep a pulse on their needs, goals and concerns. After
identifying several emerging trends in the survey data, UBS decided in
2012 to create the UBS Investor Watch to track, analyze and report the
sentiment of affluent and high net worth investors. For more information
on Investor Watch, visit ubs.com/investorwatch.
About UBS Investor Watch Pulse Report
The UBS Investor Watch Pulse Report is designed as a quick take on
topical issues of the day. In addition to this report, For the love
of art, UBS has published Redefining expectations: Women
entrepreneurs are overcoming barriers to succeed (April 2017) and
Eagerly awaiting results: Business owners anticipate tax reform
here to view and download the report and Visit
ubs.com/investorwatch to see all reports.
For this twenty-first edition of UBS Investor Watch, we surveyed 2,475
US-based high net worth investors (with at least $1 million in
investable assets) from September 15–25, 2017, including 608 with at
least $5 million. The survey included 363 art collectors, who are the
focus of this Investor Watch Pulse Report.
About UBS Wealth Management Americas
Wealth Management Americas is one of the leading wealth managers in the
Americas in terms of Financial Advisor productivity and invested assets.
Its business includes UBS’s domestic U. S. and Canadian wealth
management businesses, as well as international business booked in the
U.S. It provides a fully integrated set of wealth management solutions
designed to address the needs of ultra high net worth and high net worth
UBS provides financial advice and solutions to wealthy, institutional
and corporate clients worldwide, as well as private clients in
Switzerland. The operational structure of the Group is comprised of our
Corporate Center and five business divisions: Wealth Management, Wealth
Management Americas, Personal & Corporate Banking, Asset Management and
the Investment Bank. UBS's strategy builds on the strengths of all of
its businesses and focuses its efforts on areas in which it excels,
while seeking to capitalize on the compelling growth prospects in the
businesses and regions in which it operates, in order to generate
attractive and sustainable returns for its shareholders. All of its
businesses are capital-efficient and benefit from a strong competitive
position in their targeted markets.
UBS is present in all major financial centers worldwide. It has offices
in 54 countries, with about 34% of its employees working in the
Americas, 35% in Switzerland, 18% in the rest of Europe, the Middle East
and Africa and 13% in Asia Pacific. UBS Group AG employs approximately
60,000 people around the world. Its shares are listed on the SIX Swiss
Exchange and the New York Stock Exchange (NYSE).
View source version on businesswire.com: http://www.businesswire.com/news/home/20171207005248/en/