ART INVESTMENT

Become a fine art investorWe pride ourselves with a team of investment specialists

Deal Summary

Return on investment - year one

Rental Income

Art market value

Hold Period

25% projected

4-8% fixed

$66 Billion

3 Years

Warrington Ford Arts is not regulated by

the Financial Conduct Authority and is not

authorised to offer advice on investment,

whether regulated or unregulated. If you are

making investment decisions you should seek

advice from an independent financial advisor or

other regulated professional.

Investments in art can go down as well as up.

The information in this document should not

be relied on for investment decisions or for

any other purpose whatsoever. Warrington

Ford Arts (together with its affiliates, officers,

directors and employees) gives no guarantee,

warranty or representation as to the accuracy,

completeness, suitability or content of the

information provided in this document and

shall not be liable or responsible for any errors,

omissions or inaccuracies herein.

About us

With over three generations

of experience in the ever-

growing Fine Art market and

as one of the fastest growing

Fine Art investment companies

in UK. Experience and past

performance speaks volumes

in this financial climate our

systems and strategies have

consistently outperformed many

areas of traditional stocks and

shares, bonds and ISAs. For

over a decade savvy investors

have been using us to safe

guard their wealth to ensure

they diversify into the low-risk,

secure and a tangible concept,

which has been performing for

people for hundreds of years.

We pride ourselves with a team

of investment specialist who are

at hand to guide you on how the

market works, how to benefit

from a highly responsive market,

and to open your eyes to the

tips and tricks that really get

you ahead in such a lucrative

asset class. Our passion for the

Arts drives our motivation to

excel and get the best position

and returns for our Private,

Retail or simply Art Enthusiast

clients. WF Associates is

micromanaging the portfolio to

maximise return on investment,

to ensure client satisfaction

and deliverance on forecasts.

There are no management fees.

The investor receives a fixed

rental income on selected pieces

during the hold period and

usually the investor recaptures

100% of equity invested

before profit participation by

the manager. WF Associates

believe quality and performance

is paramount, it determines

the work we source and the

service we provide. Our belief in

passion and mere appreciation

should always dictate the

decision making process behind

any individuals purchase of

a specific piece. Throughout

history people have been known

to make a fortune acquiring

art, here at WF Associates we

endeavour to replicate the same

success for all our clients as well

as educating each individual

to simultaneously develop a

non-sentimental connection

with anything they acquire

investment-wise but rather

more a strategic approach.

WF Associates maintain a

strict preferred artist list, this

means we select prime pieces

from prominent artist’s past

and present, and only the

best are brought forward for

consideration to our clients.

This is WF Associate’s method,

which has proven successful

for over a decade, we are

proud in our maintenance of

exceptionally high ‘standard’ of

portfolios under management.

Where the value of pieces may

differ between collections will

be due to the individuality of

originals or limited print runs. We

have amassed a strong buying

power with an extensive client

base so quality is rest assured.

We are able to stock purchase

entire runs of new prints from

renowned artists or clear

residue issue with historic ones.

Largely focusing on active/living

artist’s drives capital growth,

this enables specific variables to

be in play whilst we negotiate

direct from the source and save

you money from extortionate

entry prices in the open market.

THE DIFFERENCE BETWEEN A SUCCESSFUL PERSON AND OTHERS IS NOT A LACK OF STRENGTH, NOT A LACK OF KNOWLEDGE, BUT RATHER A LACK OF WILL.

Insurance and transportation fees are inclusive within the trade. You

will receive an annual valuation of your portfolio from your advisor,

evaluating performance, strategic plans moving forward. All future

prospects will be brought forth to you by your advisor

A portfolio advisor will work with you to gain an understanding of

your objectives and investment philosophy.

Your designated advisor will guide you on your latest offerings

based on your risk levels and investment sentiments.

Decide on investment range. Average investment is £10,000; new

investors can invest from as little as £3,000.

A trade is made; contractual documents are provided all of the

agreed trade details. This document is to be signed and returned.

Transfer of funds via cheque or BACS within the agreed time

frame. We acknowledge a sale receipt upon receiving funds. A

certificate of ownership will also be provided.

How it works

That’s it...Simple

CONTACT

RECOMMENDATION

INVESTMENT

TRADE

TRANSFER FUNDS

It tracks repeat sales of works of

art to provide ‘then and now’ price

comparisons. Currently the index

has more than 34,000 price pairs.

Taking 1987 as a start point, by

2013 it had shown a 401% increase.

In comparison, the FTSE100 rose by

359% over the same period.

Art has to be viewed as a mid to

long-term investment. There have

been years when the market has

moved negatively. Most recently the

‘credit crunch’ of 2007/2008 caused

a 22% drop in the index (recovered

by 2010). The collapse of the

Japanese Yen in the early 1990s

resulted a 30% drop that took ten

years to recover. Time for some

optimism in the ‘90s the art market

had far fewer players of whom the

Japanese were a large proportion.

Today, the market is far more global

and consensus opinion is that

problems in a single economy would

not have such a deep or long-lasting

effect. One measure of the depth of

today’s market, much expanded by

BRIC and other emerging economies,

is the number of registered bidders

at major auction houses. Christie’s

reports that buyer registrations for

art sales are up 53% compared to

ten years earlier.

Another way of judging the

popularity of the art market is its

overall size. The European Fine Art

Foundation estimated 2012’s global

art market to be worth about $58

billion. This is based on auction

data and an estimate of gallery

and private sales. 20 years ago the

market was worth $10 billion. The

reason for its increasing popularity

It has been suggested by Deloitte

that “the current socio-economic

context creates a demand for ‘real

assets’ because many lost a lot

of money in the financial crisis by

investing in products they did not

understand and are turning back

to things that are closer to their

heart and which at the same time

offer protection and a return on

investment.”

We could also mention that having

a recognised work by a famous

artist hanging on the wall is a better

status-enhancer than a portfolio full

of financial instruments.

Tracking sales

Our starting point is the Mei Moses World All Art Index. Widely respected as the best

overview of performance for all sectors of the fine art market, it is the brainchild of

Jianping Mei and Michael Moses.

Seeing a loved one achieve an Important milestone. Moving into a dream home.

Planning for the golden years, whatever your future, you can make it happen

with WF Associates.

S&P 500 Index & Gold

Rental Structure

Funding Leasing IncomeNet Return (12% over the course of 3 years) (£)

£3000 £360 £3360

£5000 £600 £5600

£8000 £960 £8960

£10000 £1200 £11,200

£15000 £1800 £16,800

£25000 £3000 £28,000

£30000 £3600 £33,600

£45000 £5400 £50,400

£60000 £7200 £67,200

£80000 £9600 £89,600

£100000 £12,000 £112,000

£125000 £15,000 £140,000

£150000 £18,000 £168,000

£175000 £21,000 £196,000

£200000 £24,000 £224,000

£250000 £30,000 £280,000

£300000 £36,000 £336,000

£500000 £60,000 £560,000

£750000 £90,000 £840,000

£1.0m £120,000 £1.12m

£1.5m £180,000 £1.68m

£2.0m £240,000 £2.24m

£2.5m £300,000 £2.80m

£3.0m £360,000 £3.36m

Our Clients benefit from our unique rental program with added benefit of sustained capital growth. All participants will be able to earn on average 8 - 25 % capital growth over a three year period. We offer the most competitive rental rates in the market, flexible packages and varying lease terms with all of our programs contractually bound between client and institution with fixed income quarterly. We hold an extensive portfolio of contemporary artwork from a wide range of media and genres. Museum quality indigenous works from a significant part of our collection. Our experienced leasing team assists individuals and businesses in their selection of private and corporate artwork.

With an emphasis now more than ever on bottom line profit, companies are turning to art rental for a cost effective and flexible alternative. Today the corporate art collection can be worth a great deal and make a powerful statement but cost very little to the business.

Facts and figuresArtworks have low correlation with traditional

investment vehicles thus helping to diversify

risk in portfolios. Some art categories are even

negatively correlated with financial indexes.

While in 2008 the “S&P 500” collapsed 37%,

the ‘Mei - Moses All Art Index’ only fell 4.5%.

Added ValueAllocation

Global Art market by Value 2014 S&P 500 Index & Gold

Fixed Income - 3%

Alternative - 16%

Domestic Equity - 11%

Foreign Equity - 22%

Private Equity - 13%

Real Assets - 35%

Fixed Income - 34%

Domestic Equity - 66%

Good artworks generate thoughts and

reflections. They can enrich the investor’s

knowledge. Art produces emotional and

aesthetic experiences.

Investing in art differentiates from other

investors as artworks are a unique and

exclusive asset. They can also be considered

conspicuous consumption goods.

Artworks have an additional value to the

investors that derive pleasure from enjoying

the aesthetic qualities of art.

Art is an investment that spreads culture. An

art collection creates a unique legacy that

expresses the owner’s interests.

Germany - 2%

Rest of the World - 8%

Switzerland - 3%

UK - 22%

France - 6%

USA - 29%

China - 30%

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In 2011 China became the largest art and antique market worldwide

representing 30% of the transactions by auctions and dealers. Auction sales

increased 177% in 2010 and 64% in 2011.

Although the art market has become more global in the last years, London and

New York continue to account for 60% of the imports and exports.

Internet growth has increased transparency in the market helping both buyers

and sellers. This can be observed in mainly two areas growth of online sales/

auctions and on the information available to the public.

There are approximately 380,000 art dealers worldwide. From these the top

5% represent 70% of the gross sales and 80% of the dealer sales are below

$62,500 USD.

Art & Equities During the Financial Crises

4.5

3.5

2.5

1.5

0.5

Jan 07 July 07 Jan 08 July 08 Jan 09 July 09 Jan 10 July 10 Jan 11 July 11 Jan 12

Art 100 IndexEuropean 19th Century Art 100 Index (94%)Modern Art 100 Index (133%)MSCI World (14%)

Contemporary Art 100 Index (224%)Old Masters 100 Index (72%)European & North American Sculpture 100 Index (143)

$57.78 $16.7670%Global market represented

In 2011, USA accounted for

29% of the market meaning

Modern and Contemporary

Art represent almost

billion dollars in 2012. billion dollars.of the fine art market.

A growing market

REASONS TO BUY

ART

Soaring values

Over a million people worldwide

now consider themselves

serious art collectors. In 1980

the number was just 10,000.

That’s evidence of the growing

global market that now exists

for art with new, serious,

deep-pocketed collectors

coming from Russia, China

and the Middle East. And it’s

not just individuals. High-end

contemporary art galleries and

museums are the must-have

sign of maturity for any city

with ambitions. New museums

are opening every year, and

each absorbs hundred of works.

In the first half of 2013,

artworks sold at auction during

the period had been held for,

on average, nine years and

produced an average effective

rate of return of 6.37%. The

absolute winner during the first

half was ‘Ribs Ribs’ by Jean-

Michel Basquiat which after

holding period of five years

returned to the market with a

54% appreciation in value.

‘Contemporary’ is art’s boom sector

Limited quantity

The Chinese influence

Artnews reported that 87%

of the world’s 200 leading

art buyers own contemporary

pieces. 47% of sales worldwide

are from contemporary artists.

Contemporary art is the only

collectible art still being

produced. The majority of

masters of pre-21st century

investment-grade art are no

longer with us. A finite supply

coupled with a growing demand

ensures that values for great

work keep on growing.

China is now the world’s

second largest market for art

and antiques according to a

study by the European Fine

Art Foundation. It reveals that

China’s share of global art and

antique sales was 25% in 2012,

with the USA leading with 33%

of acquisitions. The UK remains

third, with 23% of purchases.

3rd Floor 13-14 Hanover St,Mayfair, London, W1S 1YHTel +44 203 519 1435www.artinvestmentmarket.cominfo@artinvestmentmarket.com

ART INVESTMENT