2016 Artwork portfolio performance (Gross of expenses and fees)
Based on a market to market external valuation by a leading international auction house, our overall artwork portfolio declined by -1.15% in 2016. Given the pronounced contraction in the art market, this is by all means a reasonable outcome – on paper and for now. The overall NAV of the fund declined by -3.72% in 2016.
On a like for like basis (same artworks only – excluding sold works and new works acquired) the portfolio was valued downward by 1.78%. This was mitigated by 14 realizations during 2016 which were sold for almost double our original cost and 16.93% above our book value, producing a very respectable IRR of 19.83% and contributing +0.51% to overall performance. New acquisitions during the year were valued slightly higher by year end, contributing the additional +0.12%.
2016 Contribution Analysis
From a regional perspective, Latin America was our best performing region, increasing +10.20% in 2016, probably a direct result of the exhibitions we held of our Latam collection in Miami in December 2015 and then again in New Jersey in May 2016.
The worst performing region was by far the Middle East, down 10.74%. Fortunately however, the Middle East portfolio is approximately a quarter the size of our Latam portfolio, accounting for approximately 5% of the overall collection, compared to 20% for Latam.
Our largest allocation remains to the Far East which represents 32.26% of the fund assets. Our Far East portfolio declined -2.74% in 2016, in part due to a further downward revision of the value of the Ai Weiwei “Grapes” work.
For year-end portfolio allocations by region and by medium, see below pie charts:
We aim to be as transparent as possible and hope the above information provides visibility. Please do not hesitate to contact should you have any further questions.
Serge Tiroche, co-founder
Jan. 1, 2017—On occasion of her monumental installation at the Grand Palais in Paris, we are pleased to dedicate this spotlight to Almagul Menlibayeva.Read More »