Art
Art Investing Loses Its Appeal for a $44 Billion Pension Fund
(Bloomberg) — Some of Australia and New Zealand’s biggest financial institutions are selling down their vast art collections after decades of holding pieces by some of the region’s best-known painters.
In the next few days, the Melbourne-based Construction and Building Unions Superannuation Fund is auctioning the last of about 300 pieces, which included works from noted Australian artists Arthur Boyd, Emily Kngwarreye, Margaret Preston and Brett Whiteley. The final tranche to go on sale features about two dozen Indigenous artists.
The pension fund purchased the pieces over several years three decades ago for about A$2 million ($1.2 million) and has made what looks like a tidy profit — A$11 million haul raised so far. Yet for the institution, which handles A$70 billion in pension investments on behalf of 850,000 members, the gain is barely a rounding error on a slow day.
The sale comes as Australian pension funds face heightened scrutiny of their balance sheets. Last year, new rules required funds to file detailed reports on their holdings every six months across a range of asset classes and derivatives. In contrast, the world’s largest banks and institutions are still buying art, acting as patrons and being described as the new Medicis, the Florentine banking family that famously supported Renaissance artists.
The union pension fund, known as Cbus, declined requests for interviews. “To get the best outcomes for our members we are now offering the collection for sale,” Cbus deputy chief investment officer Brett Chatfield previously said to Australian publication Money Mag.
The original goal of the superannuation fund’s collection was to bolster the community at the same time as making a tidy profit, and the works had been hung in regional galleries, Melbourne artist and collector Norman Rosenblatt said.
“Every company — everybody — should have an artistic conscience in this country,” said Rosenblatt, whose uncle bought for the Cbus collection starting in the late 1980s. “We’ve lost our corporate soul in helping the arts — we’ve just lost it.”
The auctions have been successful, with record prices for paintings that exceeded estimates, during a banner time for art valuations. The global art market recovered strongly in 2021 after a dip in 2020, according to an Art Basel and UBS report. Aggregate sales of art and antiques by dealers and auction houses reached an estimated $65.1 billion, surpassing the pre-pandemic levels of 2019, the report said.
The auction of the remaining 26 Indigenous artworks ends Tuesday, with works from artists including Johnny W. Tjupurrula, Timmy Payungka Tjapangati and Pansy Napangardi. The sale is expected to total between A$120,000 and $160,000, said Damian Hackett, director of auction house Deutscher and Hackett.
Cbus is the latest regional institution to auction off artworks. A few months ago, one of Australia’s largest banks, NAB, sold the majority of its collection and redirected the funds to philanthropy. “While the art is appreciated, it is clearly not core to NAB’s role as a bank and supporting customers,” the bank said in a statement.
Earlier this year, former New Zealand Prime Minister Helen Clark criticized the Bank of New Zealand for offloading its collection of 200 pieces.
Clark said the bank shouldn’t have sold work acquired while it was a state-owned company, before it was privatized.
“These are very significant New Zealand works of art which were acquired by a state company,” she told Radio New Zealand. She called for the Ministry of Culture and Heritage to intervene.
The bank said it had consulted over a “two-year period” on the future of the collection, and funds from the sale would be put towards its philanthropic foundation. “BNZ has retained a curated collection of works that are of particular significance to the bank, and these will continue to be displayed within our shared spaces and available on loan for public exhibitions,” a spokesman told Bloomberg.
Rosenblatt lives in the affluent Melbourne suburb of Brighton. His expansive personal art collection adorns the walls of his home of 35 years, and he has a glossy, hardcover catalog of the Cbus collection. It is a heavy tome of hundreds of pages, documenting each artwork in great detail.
Rosenblatt said that while his uncle was tasked with building a collection that would make a return over time, he also strongly believed the works should benefit the community. “It’s petty cash to this company,” he said.
Philip Hoffman, founder and chief executive officer of The Fine Art Group, based in London, said rising demand for fine art would be fueling decisions to sell now.
“Despite Covid and all the talk of the downside, the very wealthy made a huge amount of money, maybe doubled their wealth, and they’ve been plowing their money into alternative assets,” Hoffman said. He said hundreds of families are looking to spend anywhere between $1 million and $3 billion in art.
The BNZ collection — which included works by artists Colin McCahon, Rita Angus, Gordon Walters, Toss Woollaston, Gretchen Albrecht, Milan Mrkusich, Don Binney and Ralph Hotere — was estimated to go for NZ$10 million but shook out at NZ$15 million — “far more than any other auction” in New Zealand, said Charles Ninow, the director of Webb’s Auction House, which handled the sale.
“The market is going through something that’s quite amazing,” Ninow said.
Part of Rosenblatt’s own extensive personal collection is currently on display at a suburban gallery in Melbourne. He has seen how the arts industry has suffered through the pandemic, and he wants corporations to think about how they can give more back to the arts community.
He wished Cbus would consider giving some of the money from the sale back to the arts community.
“I personally think it’s been handled, artistically, very callously,” he said.
Art
Calvin Lucyshyn: Vancouver Island Art Dealer Faces Fraud Charges After Police Seize Millions in Artwork
In a case that has sent shockwaves through the Vancouver Island art community, a local art dealer has been charged with one count of fraud over $5,000. Calvin Lucyshyn, the former operator of the now-closed Winchester Galleries in Oak Bay, faces the charge after police seized hundreds of artworks, valued in the tens of millions of dollars, from various storage sites in the Greater Victoria area.
Alleged Fraud Scheme
Police allege that Lucyshyn had been taking valuable art from members of the public under the guise of appraising or consigning the pieces for sale, only to cut off all communication with the owners. This investigation began in April 2022, when police received a complaint from an individual who had provided four paintings to Lucyshyn, including three works by renowned British Columbia artist Emily Carr, and had not received any updates on their sale.
Further investigation by the Saanich Police Department revealed that this was not an isolated incident. Detectives found other alleged victims who had similar experiences with Winchester Galleries, leading police to execute search warrants at three separate storage locations across Greater Victoria.
Massive Seizure of Artworks
In what has become one of the largest art fraud investigations in recent Canadian history, authorities seized approximately 1,100 pieces of art, including more than 600 pieces from a storage site in Saanich, over 300 in Langford, and more than 100 in Oak Bay. Some of the more valuable pieces, according to police, were estimated to be worth $85,000 each.
Lucyshyn was arrested on April 21, 2022, but was later released from custody. In May 2024, a fraud charge was formally laid against him.
Artwork Returned, but Some Remain Unclaimed
In a statement released on Monday, the Saanich Police Department confirmed that 1,050 of the seized artworks have been returned to their rightful owners. However, several pieces remain unclaimed, and police continue their efforts to track down the owners of these works.
Court Proceedings Ongoing
The criminal charge against Lucyshyn has not yet been tested in court, and he has publicly stated his intention to defend himself against any pending allegations. His next court appearance is scheduled for September 10, 2024.
Impact on the Local Art Community
The news of Lucyshyn’s alleged fraud has deeply affected Vancouver Island’s art community, particularly collectors, galleries, and artists who may have been impacted by the gallery’s operations. With high-value pieces from artists like Emily Carr involved, the case underscores the vulnerabilities that can exist in art transactions.
For many art collectors, the investigation has raised concerns about the potential for fraud in the art world, particularly when it comes to dealing with private galleries and dealers. The seizure of such a vast collection of artworks has also led to questions about the management and oversight of valuable art pieces, as well as the importance of transparency and trust in the industry.
As the case continues to unfold in court, it will likely serve as a cautionary tale for collectors and galleries alike, highlighting the need for due diligence in the sale and appraisal of high-value artworks.
While much of the seized artwork has been returned, the full scale of the alleged fraud is still being unraveled. Lucyshyn’s upcoming court appearances will be closely watched, not only by the legal community but also by the wider art world, as it navigates the fallout from one of Canada’s most significant art fraud cases in recent memory.
Art collectors and individuals who believe they may have been affected by this case are encouraged to contact the Saanich Police Department to inquire about any unclaimed pieces. Additionally, the case serves as a reminder for anyone involved in high-value art transactions to work with reputable dealers and to keep thorough documentation of all transactions.
As with any investment, whether in art or other ventures, it is crucial to be cautious and informed. Art fraud can devastate personal collections and finances, but by taking steps to verify authenticity, provenance, and the reputation of dealers, collectors can help safeguard their valuable pieces.
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Ukrainian sells art in Essex while stuck in a warzone BBC.com
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The Courtauld Gallery at Somerset House has reopened its doors to the public after a fire swept through the historic building in central London. While the gallery has resumed operations, the rest of the iconic site remains closed “until further notice.”
On Saturday, approximately 125 firefighters were called to the scene to battle the blaze, which sent smoke billowing across the city. Fortunately, the fire occurred in a part of the building not housing valuable artworks, and no injuries were reported. Authorities are still investigating the cause of the fire.
Despite the disruption, art lovers queued outside the gallery before it reopened at 10:00 BST on Sunday. One visitor expressed his relief, saying, “I was sad to see the fire, but I’m relieved the art is safe.”
The Clark family, visiting London from Washington state, USA, had a unique perspective on the incident. While sightseeing on the London Eye, they watched as firefighters tackled the flames. Paul Clark, accompanied by his wife Jiorgia and their four children, shared their concern for the safety of the artwork inside Somerset House. “It was sad to see,” Mr. Clark told the BBC. As a fan of Vincent Van Gogh, he was particularly relieved to learn that the painter’s famous Self-Portrait with Bandaged Ear had not been affected by the fire.
Blaze in the West Wing
The fire broke out around midday on Saturday in the west wing of Somerset House, a section of the building primarily used for offices and storage. Jonathan Reekie, director of Somerset House Trust, assured the public that “no valuable artefacts or artworks” were located in that part of the building. By Sunday, fire engines were still stationed outside as investigations into the fire’s origin continued.
About Somerset House
Located on the Strand in central London, Somerset House is a prominent arts venue with a rich history dating back to the Georgian era. Built on the site of a former Tudor palace, the complex is known for its iconic courtyard and is home to the Courtauld Gallery. The gallery houses a prestigious collection from the Samuel Courtauld Trust, showcasing masterpieces from the Middle Ages to the 20th century. Among the notable works are pieces by impressionist legends such as Edouard Manet, Claude Monet, Paul Cézanne, and Vincent Van Gogh.
Somerset House regularly hosts cultural exhibitions and public events, including its popular winter ice skating sessions in the courtyard. However, for now, the venue remains partially closed as authorities ensure the safety of the site following the fire.
Art lovers and the Somerset House community can take solace in knowing that the invaluable collection remains unharmed, and the Courtauld Gallery continues to welcome visitors, offering a reprieve amid the disruption.
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