ART + AUCTION 'Power Issue', December 2015
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ART + AUCTION 'Power Issue', December 2015 The bios and essays in Art+Auction’s guide to notable players in the art world will be rolled out on ARTINFO over the course of the next two weeks. Here, we present Part Three. Click here for an introduction to the entire series. Click here for previously published installments. Check back daily for new articles. Magnus Renfrew * Auctioneer In July 2014, Renfrew took the title deputy chairman and director of fine arts in Hong Kong for Bonhams, the house for which he initiated sales of contemporary Chinese art in 2006. In the interim he served as the founding director of the Hong Kong International Art Fair (Art HK) and oversaw its development from 2007 to 2011, when it was acquired by MCH Group, parent company of Art Basel. He then directed the first two editions of Art Basel Hong Kong, in 2013 and 2014. In 2013 Renfrew was named a Young Global Leader by the World Economic Forum, and he has been instrumental in positioning Hong Kong as a center for modern and contemporary art in Asia. At Bonhams, Renfrew now draws on his deep knowledge of the gallery and collector network and the overall Asian market while overseeing regional business strategies as well as the Classical, modern, and contemporary Asian art departments. // AUCTION STRATEGIES M a g n u s R e n f r e w press archive 1 HONG KONG ECONOMIC JOURNAL 'How to trade the new golden age of art', 18 November 2015 The 2008 financial crisis prompted investors to include alternative investment in their portfolio to diversify risk. As a platform for alternative investment, the art market is experiencing a new golden age previously thought impossible. According to the European Fine Art Foundation Art Market Report 2015, sales in the global art market hit a record €51 billion (HK$427 billion) last year. Investing is sometimes referred to as an irrational behavior and art itself often appears subjective. But not many realize that art investment can be a rational game. What should investors consider before they bet on art? Compared with other forms of alternative investment, art investment stands out in terms of its potential return on investment (ROI). Les Femmes d’Alger (Version O) by Picasso, for example, was sold for US$179 million (HK$1.4 billion) at an auction in May, five times more than it fetched (US$31.9 million) in 1997. Based on the experience of collector and art critic Paul Serfaty, his ROI ranges from one to 300 times and the average over 20 years is eight times his investment. Serfaty sells from his collection but he says he collects art not for the sake of investment but for his genuine interest in art. “Everyone in the art world would advise you not to see art as an investment because it is a highly subjective new asset class which is subject to fashion,” he says. “It can’t be recommended as a pure financial investment.” Art market vs wealth distribution There is a close link between market performance and global wealth distribution, Serfaty says. He cites the art market in the United Kingdom between 1860 and 1914 as an example. A new generation of collectors who made their fortune from manufacturing and trading emerged and started collecting art. Art historian Gerald Reitlinger refers this period as “golden age of the living painter”. Serfaty says his ROI benefited from the rise of Chinese contemporary art. Moving to Hong Kong in 1988, he described China’s art market in those days as mainly dominated by foreign buyers until it had a dramatic turn at the millennium. “The Chinese contemporary art market is unique. A considerable amount of cultural heritage was destroyed and almost all art forms had been turned into tools for propaganda during the Cultural Revolution,” he says. “There was no capital and limited scholarship before the rise of the Chinese economy. It was only when a new generation of Chinese collectors emerged that their strong appetite for Chinese contemporary art heated up the market.” Quality is king M a g n u s R e n f r e w press archive 2 The de Sarthe Gallery exhibits artworks by Chinese art master Zao Wouki and emerging artist Wang Guofeng, among many others. Founder Pascal de Sarthe believes that the golden rule of collecting art is “quality first” because talented artists can lead the trend. “If the secret recipe to real estate investment is location, location and location, art investment is all about quality,” he says. “You should always buy the best quality that you can afford and identify talented artists before they gain fame.” Art collecting requires patience. Take the Japanese Gutai Group: their artworks had been widely criticized when they first exhibited in the United States half a century ago. Dore Ashton, commentator of The New York Times even wrote that in some ways, the paintings “so imitative of the formless movements of living that they might be called rather dull representational works”. But now Gutai Group is widely popular. Their works were shown at the Guggenheim Museum in 2013. Keishizoku by Kazuo Shiraga sold for US$4 million at a New York auction. Diversifying for auctions Magnus Renfrew, deputy chairman and director of fine arts for Asia of international auction house Bonhams and former director of Art Basel, Asia stressed the importance of engaging with a new generation of collectors. To specifically target this area of the market, Bonhams hosted its inaugural auction dedicated to prints, photographs and works on Nov. 14. “There have been sales dedicated to these media in London and New York for many years yet in Asia they have not, up until now, been given the attention they deserve,” he said. “We want to apply international standards of practice to the promotion of these media. They can often provide a very accessible entry point into collecting and a good way to engage with new collectors. We have decided to make this sale truly global in content as collectors are now buying beyond their own national or regional boundaries.” Last month, French auction house Artcurial hosted its inaugural auction in Hong Kong. Sales included a range of categories such as comics, furniture and decorative art, modern and contemporary art and collectors’ cars. Revenue from comics was the highest among the four categories. An Asian collector bought the Tintin story The Blue Lotus by Belgian cartoonist Hergé for US$1.24 million. This is the first in a two-part series on art investment. The article appeared in the Hong Kong Private Banking Journal on Nov. 18. M a g n u s R e n f r e w press archive 3 WALLPAPER 'Art for all: Bonhams Hong Kong stages affordable art auction', 13 November 2015 BY CATHERINE SHAW If Hong Kong-based art specialist Magnus Renfrew has his way, the old fashioned chat-up line inviting someone to ‘come up and see my etchings’ is about to experience something of a revival. Renfrew is credited with effectively jump-starting Asia’s regional contemporary art market with his Art HK fair that morphed into Art Basel Hong Kong in 2012. In his new role as deputy chairman and director of fine arts for Asia at Bonhams Hong Kong, he is introducing a new category of auctions in the city, designed to demonstrate that buying art at an auction does not necessarily require a limitless credit card. The upcoming inaugural auction of 100 prints, photographs and ‘works on paper’ is the sort of affordable art Renfrew believes will appeal to a new generation keen to start buying art but who find art fairs and galleries intimidating. ‘An auction house offers a more relaxed environment and compared to galleries, estimated prices are on show,' he says. ‘We have deliberately included works by recognised artists like Damien Hirst and Andy Warhol at a very affordable price to attract people who may not have bought art before.’ Prices at the auction range from HK$8,000 to HK$700,00 while one of Hirst’s works is listed at an estimated at HK$55,000. Standouts include a graphic Black Loops & Curves No. 3 etching by Sol Lewitt and Shanghai-born photographer Ho Fan’s iconic Approaching Shadow, an original vintage gelatin silver print that perfectly captures Hong Kong street life and culture during the 1950s. Prints and photographs don’t usually feature on the city’s white-hot speculative art market but with Hong Kong’s M+ museum of visual culture having snapped up a more recent archival print of the same photograph, that too may soon change. M a g n u s R e n f r e w press archive 4 NEW YORK TIMES 'Art Basel Shows How Far Hong Kong Has Come', 13 March 2015 By JOYCE LAU HONG KONG — Collectors and museum directors from around the world had the chance on Friday to deal discreetly with the 223 galleries participating in the third Art Basel in Hong Kong fair. The private viewing was the quiet before the storm on Saturday night, when the event kicks off officially with a Champagne-soaked vernissage that has become Hong Kong’s art party of the year. An estimated 65,000 visitors will descend on the fair before it closes on Tuesday. The popularity of the annual Art Basel in Hong Kong is testament to how rapidly this city’s art market has grown, and how far it still has to go. One of the fair’s big draws — the Encounters section, with large-scale installations by international artists — is a hit with the public precisely because Hong Kong still does not have a world-class contemporary art museum.