‘Sokrat’ Investment Group Introduces New ‘Art-Banking’ Service

July 14, 2008

The ‘Sokrat’ Investment Group has suggested the launch of a new Ukrainian investment market for “Art-Banking”, which will be managed under the umbrella of the company’s Private Banking Department.
The classic model of Private Banking at “Sokrat” involves the provision of an array of services related to the management of capital, both in the traditional and alternative spheres of investment. Art-Banking includes a full package of services to build portfolios (collections) of works of art with an investment quality that accords with individual investment strategies, based on the personal wishes and preferences of the client for this particular type of investment, given such considerations as risk, profitability and liquidity. This service is provided to both corporate and private investors and covers the following areas - consulting on forming investment-quality collections, analysis of collections or individual works of art, advice on selecting collections, management and maintenance of art’s long-term value, the organization of examinations regarding authenticity, and assistance in art restoration and storage.
According to Elena Kolosvetova, the Director of Privat Banking at ‘Sokrat’, tendencies in the development of the global art market and an analysis of the current state of the Ukrainian market suggest that the development of alternative investments opportunities is prospective. At the present moment, Ukraine does have a circle of collector-investors. For example, if it were possible to purchase pieces created by Ukrainian classicist Nicholas Glushchenko at European auctions for USD 40,000-50,000 two to three years ago, already in 2007, the value of his works had grown to USD 100,000-120,000. In 2008, one of Glushchenko’s works entitled “Surf” (1911), sold at a Ukrainian auction for a record price of USD 260,000.
“As part of the Art-Banking program, company specialists provide consulting support for collectors and art lovers. The company has its own database of artworks including artists’ classics from the XIX-XX centuries and prospective contemporary artists, and it also has access to numerous databases in the sphere of art,” explained Elena Kolosvetova. “By acting in customers’ interests, our specialists have completed an analysis of those works of art that, in addition to their high artistic value, are also of considerable value in material terms. Analyzing market trends in art, in collaboration with leading experts, allows our company to implement the correct valuation of artworks that have been verified by art specialists. This enables the client to quickly manage a portfolio of art objects, which, apart from that, also provide a high artistic and investment-enhancing value.”

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