Sunday, October 01, 2006

Art as an asset

Information on the BR use of art as an asset class and some more recent attempts.

Funds To Please The Eye:
"The new crop of art funds isn't the first to try this investment approach. In the mid-1970s, British Rail Pension Fund put $100 million, or 2.5% of its portfolio, into art. The fund amassed a broad collection of 2,400 pieces, from Chinese porcelains to African tribal art. The portfolio wound up with an annual compound return of 11.3%, but the gains came primarily from 25 Impressionist paintings. The fund sold off all of its art from 1987 to 1999. 'We tried to diversify too much,' says Jeremy Eckstein, a former adviser to the fund who is consulting with some of the new players."

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