Many wealthy enthusiasts are uninterested in
parting with works, choosing instead to pass down collections to
heirs
New UBS Investor Watch Pulse Report, "For the
love of art," offers insights on US-based collectors' behaviors and
buying trends
Key Findings:
- 65% of those surveyed have never sold
any works of art/objects from their collection
- 88% of collectors do not have an art
advisor to guide their purchases
- 26% of art collectors have purchased
art online, sight unseen
- While 87% of wealthy collectors plan to
leave their collection to heirs, 57% have not taken steps to
educate them on how to manage, appraise and/or sell their
collection
- Among those surveyed, Art Basel in
Miami Beach is the top art event attended by collectors
UBS 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 sources
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
(November 2017). Click here to view and download the report and
Visit ubs.com/investorwatch to see all reports.
Methodology
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 clients.
About UBS
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/
For UBS Wealth Management AmericasMaya Dillon,
212-713-3130Mobile: 917-615-7094Maya.dillon@ubs.com
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