A Study On The Theories And Practices Of Art Funds

Art Funds is part of Arts Management,which belongs to the field of Art Theory.Art funds refer to the accumulation of money to fund art trades.In this dissertation,the first chapter presents a diamond model of art finance,which gives the proper position of art funds in art finance.I use this model to inter-disciplinarily investigate the core part of art finance: art market,especially that related to art funds,which serves as the theoretical foundation for the study of art funds.According to the developing trajectory of art funds,the second,third,and fourth chapters discuss the prototype of art funds,art investment funds,and art funds in China respectively.The second chapter traces the prototype of art funds,which roots in the long history of the syndicates organized by art collectors,dealers,museums,and other individuals or institutions in collecting and combining money for buying artworks.The third chapter discusses art investment funds.In the 1960 s,with the popularization of the concept of “art as investment,” syndicate art funds was replaced by professional art investment funds.Art investment funds started to demonstrate clear financial characteristics as embodied in the participation of financial institutions such as banks,the use of private equity models,the increase in financial experts,and the rational investment process.In order to achieve the goal of “art for money’s sake,” art investment funds adopted diversifying,monopolizing,or opportunity strategies.Through the network of art market participants made of art dealers,auction houses,and museums,art funds purchased,exhibited,leased,held,and sold arts in the market in order to realize the “price alchemy.” The fourth chapter discusses the art funds in contemporary China.After the financial crisis,Western investors’ enthusiasm for art funds subsided;however,Chinese art funds sprung up.The year of 2010 is known as the “first year of Chinese art funds” when China replaced the West as the center of art funds in the world.Compared with the Western art funds,the Chinese Art funds demonstrate unique domesticate features that art investment trust is the main type,Chinese art is the mainstream investment category,and the cultural exchange is the selling channel.This chapter also discusses the problems and challenges Chinese art funds face and the measures for improvement.The fifth chapter reflects on the values,limits,and paradoxes of art funds.Art funds have positive values in helping investors reduce risk and gain both financial and non-financial benefits,as well as financing the art world.However,there are also limits in terms of performance records,symbolic capital,and participants in art funds.I summarize by pointing out the importance of the study on art funds that as the combination of art and finance,art funds have intrinsic paradoxes between price authority and intrinsic value,instrumental rationality and changing tastes,as well as economic interests and artistic moral,which deserve full attention and further research.