For investors
Most individuals keep their savings in low-interest deposits, which often fail to outpace inflation, orinvest in yet another property in their hometown – an asset class with questionable liquidity and limitedutility. Recent years have shown that artworks have successfully preserved their real value. Thisresilience is largely due to their uniqueness and inherent cultural worth. Moreover, art exhibits a lowcorrelation with equity and bond markets, making it an effective tool for portfolio diversification. Asglobal wealth increases, more investors are turning to art as one of the most attractive alternativeasset classes.
That said, direct access to art as an investment remains a challenge for the average investor. A lack ofknowledge about the market, technicalities surrounding the purchase and sale of artworks, risksrelated to forgery and storage, and limited understanding of market trends make art a difficult assetclass to navigate for non-professionals. Institutional portfolio investors, for their part, are generallyprohibited from holding physical assets (i.e., non-financial instruments) and therefore cannot engagein this segment directly. The fund is an appropriate solution for institutional investors seekingdiversification through assets with low correlation to capital markets. The distinctive features of art asan investment make it particularly suitable for long-term strategies.
Liquidity, diversification and investment divisibility
If someone appreciates a painting priced at BGN 10,000, they cannot simply invest BGN 7,234 into it. Through the fund, however, they can – by purchasing the corresponding number of shares, each witha nominal value of BGN 100 and a market price of approximately BGN 140 as of early 2025. If theinvestors later need BGN 3,567, they cannot sell a portion of the painting – but they can redeem partof their shares.
The fund regularly publishes the net asset value (NAV) per share. New shares are issued at this NAV. At the same time, the fund repurchases its shares at this price (less applicable redemption fees). Thisstructure provides liquidity and allows investors to add capital or partially liquidate their investment atany time.