WHATS TRENDING NOW MILLENNIALS AND MILLIONAIRES APRIL 2017

WHAT'S TRENDING NOW, MILLENNIALS AND MILLIONAIRES APRIL 2017

LE PEAU DE L’OURS INVESTMENT CLUB, PARIS 1914 Pablo Picasso Family of Saltimbanques 1905 National Gallery, Washington D. C.

SCULL AUCTION, SOTHEBY’S PARKE BERNET, 1973 The Art Institute of Chicago Jasper Johns Target, 1961 Still from the movie, “America’s Pop Collector: Robert C. Scull: Contemporary Art at Auction” Robert Scull, Collector

AUCTION OF IRISES, SOTHEBY’S, 1987 Vincent van Gogh Irises 1889 J. Paul Getty Museum

COLLECTOR MOTIVATIONS % WHOSE REASON FOR COLLECTING ART & COLLECTIBLES IS ENJOYMENT OF ITS AESTHETIC VALUE ALL ART COLLECTORS BY AGE AND ASSET LEVEL 62% 55% 88% 85% 83% 70% om ur e $3 M-$5 M Ba by Bo M at er s X n Ge M ille nn ia ls 49% $5 M-$10 M+ OTHER REASONS FOR COLLECTING ALL COLLECTORS It's an asset expected. . . 26% It's an asset expected. . . 23% To create a legacy 15% 23% Enjoyment of being in. . . 15% Millennials Community 22% 30% Gen X Legacy 8% 5% 7% 4% Baby Boomers Mature

RISK TOLERANCE % WHO BELIEVE INVESTING IN ART & COLLECTIBLES IS RISKY BY ASSET LEVEL BY AGE 46% 27% Millennials Gen X 52% 44% 36% Baby Boomers Mature 34% $3 M-$5 M %5 M-$10 M % WHO BELIEVE TO BE TRUE ABOUT ART & COLLECTIBLES AMONG COLLECTORS BY AGE 76% 66% 44% 42% 35% 29% 15% 19% Gen X 10% 6% The real value of fine art is its The value of fine art will continue intrinsic value, not the monetary to increase long term value Millennials 36% Baby Boomers Collecting art is a way to build significant wealth Mature

ART AS A CAPITAL ASSET ONE invests in art as a Leverages art in ten in five DIVERSIFICATION STRATEGY AS A FINANCE % WHO INVEST IN ART AS AN ALTERNATIVE % WHO USE FINE ART AS LOAN COLLATERAL STRATEGY ALL ART COLLECTORS AND BY GENDER BY AGE 23% 22% 12% BY ASSET LEVEL 20% Women 23% + 51 e X Ge n M Men ille nn ia Al All 1% Ag 9% l 13% ls 18% BY ASSET LEVEL 15% 10% 5% $3 M-$5 M $5 M-$10 M+

COLLECTION PLANNING % WHO PLAN TO GIFT TO NOT-FOR-PROFIT BY AGE AND ASSET LEVEL 42% 30% Millennials Gen X 24% 23% Baby Boomers Mature % WHO PLAN TO PASS TO FAMILY BY AGE 84% 49% Millennials 85% 63% Gen X Baby Boomers Mature 35% 40% 22% $3 M-$5 M $5 M-$10 M+ % WHO PLAN TO SELL ALL/MOST BY AGE 52% Millennials 42% Gen X 17% 13% Baby Boomers Mature