Abstract:

The paper considers the recent investment trend established on the art market. This trend is related to development of shared ownership for works of art. The emergence of the trend is determined by a significant rise of prices for works of art, on the one hand, and involvement of numerous small investors, who are ready to invest into a broad range of assets, on the other hand. However, it causes the problem of reducing investment risks related to a poorly chosen art object. This problem can be solved by implementing the shared ownership model in the form of an investment mutual fund. In Russia it is defined as a closed-end fund (CEF), whose assets replicate one of the art indices. On the example of the Russian market the authors show that tools of the investment funds established on the basis of Russian art indices can be used as a protective asset for the equity portfolio that models the Russian stock index MOEX10. The effect of deep diversification is achieved due to a strong negative correlation between the MOEX10 index and the Russian art index ARTIMX-Rus.