Financial Planning & Your Collection by PHILLIPS

FINANCIAL PLANNING & YOUR COLLECTION

The art market is diverse and ever-changing, and now more than ever strategic planning and management of one’s personal art collection is paramount to achieving its investment potential. Collections can be formed from a family inheritance, over many years as a personal hobby and interest in the arts, or strictly as an additional asset class in one’s investment portfolio.

LEFT TO RIGHT

FRANK STELLA

Double Concentric Square, 1978

MICKALENE THOMAS

Portrait of Qusuquzah #5, 2011

GEORGIA O’KEEFFE

Crab’s Claw Ginger Hawaii, 1939

PETER SAUL

Ice Box #3, 1961–62

MEET OUR TEAM

No matter if your collection consists of a handful of high value works or an estate of hundreds of collectibles, the acquisition process, valuation and eventual transfer of title require thoughtful planning and advice from trusted professionals in the field. While it is imperative to seek professional direction from your attorney or accountant, Phillips’ team of specialists and advisors are here to offer holistic guidance for the lifespan of your collection.

VIVIAN PFEIFFER Deputy Chairman and Senior International Specialist, New Markets, Business Development

LAURA WENGER Vice President and Senior Account Manager,

JENNIFER

JONES Senior Director, Professional & Advisor Services

CAROLINE DECK Vice President and Senior Account Manager, Professional & Advisor Services

Phillips’ Professional & Advisor Services department, along with our team of esteemed specialists, draw on years of experience working with the world’s most prominent collectors and art institutions. We are here to share our knowledge and insights to help you reach your personal and financial goals for your collection.

ATKINSON MARRIN Director, Professional & Advisor Services

RACHEL

Phillips’ Leadership

EDWARD DOLMAN

Executive Chairman

Joined Phillips in 2014, after a 27-year career at Christie’s

Following Edward Dolman’s transformation of Phillips since 2014, including the decision to focus exclusively on 20th and 21st century art and design, he now develops new business opportunities across the company.

CHEYENNE WESTPHAL

Global Chairwoman

Joined Phillips in 2017, after a 26-year career at Sotheby’s

Cheyenne Westphal, the art market’s leading contemporary art expert and only woman at this level of seniority across the houses, drives Phillips’ growth and has key relationships with important collectors from across the art world.

MARTIN WILSON

Chief Executive Officer

Joined Phillips in 2018, after a 22-year career at Christie’s

Martin Wilson was appointed Phillips’ Chief Executive Officer in December 2024. Based in London, he assumed the role with nearly three decades of experience in the international art and auction business. As a leading lawyer in the field, he is well known and highly experienced in the art world. Since 2019 he has been on Phillips Executive Board, as Chief Legal Officer, responsible for Phillips’ global legal and compliance function.

The value of art has always remained an important topic for collectors, particularly in relation to swings in the financial markets. Desipte the struggles that came with the COVID-19 pandemic, it also created a window of opportunity for new sale avenues in the digital space, and an impetus for creative change among established institutions. Ultimately, the optimistic trends in art sales for 2024 further prove that even in an uncertain marketplace, collecting art and objects continues to be a significant asset class all its own.

Since 2014, when Edward Dolman was appointed CEO, auction sales have more than doubled. Phillips has grown by working with long-term collectors and those new to market, and by selling top-tier artworks and collections. We have also expanded around the world, with regional offices and representatives in all major US and international hubs. With just seven sale categories, we see a high level of cross-category bidding—ultimately generating competition between buyers and generating the best financial results for our consignors.

Ultimately, art has no true transparent, regulated, real-time marketplace such as publicly traded securities. On the contrary, the value of art and collectibles is determined by a variety of factors much more nuanced than simple supply and demand. These factors are discussed in further detail on the following pages.

Provenance

The provenance of a work—the history of its ownership—can have a significant impact on value. Provenance can include auction records, conservation reports, bills of sale or invoices, and in many cases can effectively trace a work back to its creation. Regardless of the size or value of your collection, it is always important to retain all purchase records and other relevant documentation relating to the works’ history, both in physical files and electronically if possible. Whether passing your collection on to heirs or selling during your lifetime, provenance files can be invaluable to proving authenticity and maintaining the value of your works.

A strong provenance can positively influence the valuation of a piece, particularly if the previous owner was a celebrity or a noteworthy individual. For example, in October 2017, Phillips New York sold a Rolex Daytona wristwatch formerly owned by Paul Newman for a staggering $17.8 million. Without such a special provenance, the same watch would have achieved much less. In this case, buyers are drawn not only to the object that is offered for sale, but also the history and celebrity allure that comes with it.

Estimate $1,000,000–2,000,000

Sold for $17,752,500

Rolex “Paul Newman Daytona,” Ref. 6239, circa 1968

JOSEF ALBERS

Homage to the Square: Silent Gray, 1955

Estimate $400,000–600,000

Sold for $1,316,000

Appealing provenance does not necessarily have to mean celebrity ownership. Rather, an important private collection or estate can attract buyers in the same way. Buyers are interested in obtaining estate property that is fresh to the market and that comes from a collection of both good taste and a compelling narrative. One such collection is that of Florence Knoll Bassett, a pioneer of architecture and modernist interior design, which Phillips sold in 2019. Aware of her design acumen, collectors were interested in purchasing a piece from Florence Knoll Bassett’s personal collection, knowing that it had been considered good enough to be displayed in her own home. Highly influenced by Josef Albers, Florence

Knoll Bassett had several works by the artist in her collection. One of these works, Homage to the Square: Silent Gray, sold for $1,316,000 against an estimate of $400,000–600,000.

In 2019 Phillips also sold the prestigious collection of Miles and Shirley Fiterman, made up of 20th century and Pop Art masterworks, some of which had never before been displayed publicly. While many of the works in the collection were important enough on their own without the Fiterman provenance, buyers recognized that they were purchasing a piece of the Fiterman’s illustrious lifestyle and high taste level.

© The Josef and Anni Albers Foundation/ Artists Rights Society (ARS), New York

Authenticity

Authenticity is arguably the most important factor in determining the value of a work of art. In addition to a strong, verifiable provenance, recognition from a central authority is often critical in retaining value for so many works of art. A major risk surrounding art investments is that a work can ultimately prove to be a forgery, misattributed, or questionably obtained in the marketplace. Therefore, it is crucial for collectors to do their own due diligence when making a purchase. Remember, invoices and statements from a gallery are not substitutions for a proper certificate of authenticity, and even the age of an “ancient” artifact can be manipulated to fool collectors. Phillips’ specialists can advise you on purchases you are considering both at auction and in the primary marketplace to ensure you are making the most informed decision.

DID YOU KNOW?

A serious challenge within the art market is verifying authenticity and provenance for works by artists who are no longer alive. This issue may be solvable thanks to cutting edge technology known as blockchain. Blockchain utilizes a public, decentralized list of records that are linked and secured using cryptography, creating an incredibly secure way to transfer digital data. Relating to artworks, blockchain is able to track and verify authenticity through timestamps on transactions, as well as offer cryptographic signatures. While the art world is in the early stages of applying blockchain to transactions, it could help to solve the constant issue of unknown or lost provenance.

Condition

Keeping a piece of fine art or decorative object in good condition is critical to maintaining its value. Collectors should always be aware of the environment in which their works are stored, as direct sunlight, a precarious location over a fireplace, or simply living in a humid climate can compromise the safety and condition of a work over time. For example, an oil painting that has been exposed to humid weather or high temperatures may result in the canvas or underlying support expanding, which causes the paint to crack and flake off. Likewise for a work on paper, humid conditions can cause moisture to collect on the surface, ultimately promoting visible mold growth. Some damage can be mitigated with professional conservation and restoration, however not all restorers provide the same level of expertise. Phillips’ specialists can serve as invaluable resources for assessing the condition of your pieces and referring outside experts to review the appropriate next steps for rectifying any issues.

This may go without saying, but a work in pristine condition will always be worth more than a similar work with condition issues and imperfections. Undertaking frequent appraisals of your collection can highlight known concerns before they worsen any further.

Rarity

Rare objects often equate to higher values. Phillips’ specialists are experts on the oeuvres of the artists we bring to auction, and as such, are authorities on the rarity and desirability of a work in the context of the marketplace. A work from a smaller, lesser known series of an artist’s output, for example, may be more valuable than another example from a larger series. However, in some cases rarity can have a negative impact on value if the work is not representative of the current trends or market taste, therefore making the work less desirable to collectors. Phillips’ specialists are equipped to advise you on these differences and determine the value of a work with regard to its rarity.

Market Trends

The value of art can change greatly due to fluctuations in market trends and evolving tastes. Many collectors believe that a work’s valuation will appreciate over time, however this is not always the case. Certain artists can become unpopular, or even an entire genre can fall out of fashion. For example, European and American furniture from the 18th and 19th centuries were once prized collector’s items at high end auction houses and galleries. Now collectively referred to as “brown furniture”, this genre is no longer desirable to millennial buyers. As a case study, a tall mahogany secretary desk from 1800 was sold at an international auction house in 2004 for $71,000. Just fourteen years later the same piece sold at a small regional auctioneer for $12,000.

Unlike the declining collector base for many categories of furniture and decorative objects, there are certain artists that are always considered stable investments, referred to as “blue chip” artists. Borrowed by the finance world, the term “blue chip art” designates works that are considered to be a safe investment, independent from exterior economic fluctuations. Artists like Pablo Picasso, Mark Rothko, and Jeff Koons for example, are considered highly sought-after investments based on their stable place within the art market, and collectors are willing to pay top dollar for their works.

WHO WE ARE

Phillips is the only international auction house to focus exclusively on the aesthetic movements of the 20th and 21st centuries. Focus, not flash, drives our business as we provide our clients with a boutique experience—one that is thoughtful, tailored, and ultimately yields higher returns for our clients. Our fierce commitment to quality over quantity is reflected in the structure of our tightly curated auctions.

Focus

Phillips has become synonymous with dynamic combinations of contemporary art alongside seminal work by established masters. Phillips is the only auction house to sell all masterworks from the 20th century on the same stage within a single sale context of 20th Century & Contemporary Art, spanning the fields of contemporary art, European modernism, American and Latin American art. In today’s market, where collectors are increasingly discerning in their pursuit of high-quality works of art, this focus matters more than ever.

Our strategic focus is further enforced by our commitment to quality over quantity. Unlike the other houses, where hundreds of works are spread out over multiple sales, exhibited in multiple areas and with staff attention highly divided, Phillips’ entire team is focused on one sale, at one time. By putting our commitment to you as our consignor first, we secure the best possible financial return on your behalf.

Expertise

Our team brings together a group of specialists and support staff from every international auction house, affording us with a collective expertise that is truly unrivaled among our competitors. We have recruited experts from auction houses, museums, and galleries from around the world—all of whom want to provide a truly unique buying and selling experience for our clients.

OUR LOCATIONS

In June 2021, Phillips unveiled its global headquarters in Midtown Manhattan, located at 432 Park Avenue. Designed by internationally renowned architecture firm Studio MDA, our space features 55,000 square feet of gallery and auction space, a sunken mezzanine and unprecedented street-level access in one of the highest-visibility streets in New York. Phillips’ European headquarters are located in London within prestigious Berkeley Square and the bustling international hub of Hong Kong,

where a central office space and gallery opened in 2023 within the West Kowloon Cultural District. The space welcomed more than 30,000 visitors in our first two months of operations. Ours is the first purpose-built saleroom and gallery in Hong Kong for any international auction house. Phillips also launched a new outpost in the heart of Milan’s historic center, underscoring our commitment to fostering growth in Italy and investing in key markets across Europe.

LONDON

HONG KONG

Outside of the three flagship headquarters, Phillips also has regional representatives and offices in the following metropolitan hubs, offering our international clientele constant access to Phillips’ team and expertise.

Regional Representatives

Los Angeles

BLAKE KOH

+1 323 383 3266

Miami VIVIAN PFEIFFER

+1 212 940 1392

Aspen PHILAE KNIGHT

+1 917 528 1313

Dallas JOYCE GOSS

+1 214 801 1788

Antwerp

MARIANNE HOET

+32 3257 3026

Munich TOBIAS SIRTL

+49 151 4192 6447

Cologne DR. ALICE MEIRÉ

+49 173 25 111 69

Copenhagen KIRSTEN MACDONALD

+45 20 10 21 11

Geneva NATHALIE MONBARON

+41 79 959 73 69

Milan CAROLINA LANFRANCHI

+39 338 924 1720

Paris

LAURENCE CALMELS

+33 1 53 71 77 87

Portugal & Spain MAURA MARVÃO

+351 917 564 427

Jakarta VIVI YIP

+62 8111 220 824

Seoul YEONAH LIM

+82 2 797 8001

Shanghai QING SHEN

+86 137 0111 9671

Singapore CHRISTINE FERNANDO

+65 9128 6277

Ho Chi Minh City VY TRAN

+84 708770837

OUR SERVICES

Auctions

Phillips conducts sales in a select number of categories: 20th Century & Contemporary Art, Photographs, Editions, Design, Watches and Jewels. With our specialized focus on modern and contemporary art and design, we are able to offer an uncluttered auction calendar, which offers the added benefit of flexibility. When you consign or buy with Phillips, we will always be able to prioritize your experience first and foremost.

Phillips’ two highest sale totals in company history were realized in the past two consecutive years, with a global sell-through rate reaching an impressive 86% across all sale venues company-wide in 2024. In the Modern & Contemporary Art category, Jean-Michel Basquiat led the sale season

with stellar results. Untitled (ELMAR) sold for $46.5 million during Phillips’ Evening Sale of Modern & Contemporary Art in New York on 14 May, becoming the most expensive work sold at auction across all houses that spring. In addition, Basquiat’s Native Carrying Some Guns, Bibles, Amorites on Safari was offered in Hong Kong on 31 May and realized HK$99 million/ US$12.6 million, making it the highest value work in the spring 2024 sale season across all houses and categories in Hong Kong.

With a focus on fresh and estate property in 2024, an astounding 62% of Modern & Contemporary Art Evening Sale works were fresh-to-market, having never been previously offered at auction. Overall, global 20th Century & Contemporary Art Evening Sales were 87% sold by lot and 89% sold by value.

JEAN-MICHEL BASQUIAT Untitled (ELMAR), 1982

Sold for $46,500,000

Photographs saw outstanding results achieved for works with exceptional provenance from important consignors, including Martin Z. Margulies, and celebrated photographers Ellen Von Unwerth and Ikkō Narahara, among others.

Editions auction sell-through rates have averaged over 90% across both 2023 and 2024, and the department have added a dedicated Damien Hirst auction to the calendar this year, joining the already established standalone auctions dedicated to Pablo Picasso and David Hockney.

Sell-through rates in our Design auctions have averaged over 90% across both 2023 and 2024, and the department celebrated their second dedicated Lucie Rie auction, which achieved a 100% sell-through rate, with a final total of $3.2 million, more than triple the low estimate set for the sale.

Phillips’ Watch department, in Association with Bacs & Russo, has cemented its market leadership by consistently surpassing $200 million in annual auction totals over the past four years. In addition, the Fall 2024 season marked an unprecedented milestone of four consecutive 100%-sold New York auctions and the highest annual sales total in U.S. watch auction history.

Jewels auctions now hosted in Phillips’ Geneva saleroom has brought the sale department to new heights, with auction totals across Geneva, Hong Kong and New York increasing over 50% year-on-year.

Browse & Bid From Anywhere

In addition to live auctions, Phillips offers an innovative online sale platform to further our global reach. With the added benefit of flexibility, our online-only sales engage our active clients while simultaneously energizing the newest generation of art collectors. With 65,000 account holders in over 100 countries, Phillips’ curated online-only sales are increasingly popular with collectors around the world. Since 2017, Phillips’ online-only sales have seen unprecedented growth, with sales up an impressive 800%. Online-only sales realized $4.8 million across 11 sales of 20th Century & Contemporary Art, Design and Jewels in 2019.

Dropshop

A testament to Phillips’ incomparable spirit of innovation, Phillips created Dropshop—an award-winning new digital platform that has captured the zeitgeist by connecting our audience with limited edition, exclusive ‘drops’ of works by creators who are actively shaping today’s culture. Something we are particularly proud of is the fact that artists and makers will receive a resale royalty commission for any work purchased from Dropshop that is subsequently re-offered at Phillips—an industry first. Over 50% of all Dropshop buyers are new to Phillips, with buying activity seen in

21 countries across 4 continents—signifying the incredible reach of this innovative platform. Diverse and coveted Drops ranged from bronze sculptures to screen prints and unique drawings. Highlights included Jean-Michel Basquiat’s Hip Hop Vinyl Beat Bop, which sold out in 60 seconds, and Kyne’s drop, which sold out in 30 minutes.

Livestream Auctions

We offer fully integrated livestream HD video and live mobile bidding, allowing clients to watch our auctions and place bids in real-time on their mobile devices. Furthermore, in 2020 we saw a 254% increase in downloads of the Phillips App and a 50% increase of property sold online. With a clear and focused message, Phillips engages audiences from around the world, turning online browsing into buying.

Specialist Engagement

Virtual client engagement is tailored to each collector. Specialists contact top clients directly about key lots, offer Zoom meetings in the galleries, and send high-resolution photographs and digital marketing assets directly to collectors. This focused outreach will bring works to life, even from afar.

NFTs

Auction houses—with their international brand visibility and access to millions of collectors— have provided the most successful sale platforms for NFTs, achieving prices that are leagues above those realized on the NFT marketplaces. Yet the art and NFT worlds have been mostly distinct from each other, without enough crossover between their collector bases. We believe that the greatest success comes through such crossover and are experts at achieving it. We select a handful of NFTs that align with our brand’s ethos, and devise a custom marketing and sale strategy for each one. Whether offering a consignor’s work in a dedicated online sale or as part of our main art auctions, our focus is on achieving the best results on your behalf.

Phillips has unmatched networks of collectors, including in Asia, the world’s most rapidly growing art market. By promoting our NFTs to collectors across categories in every geographic region, we achieve superior results. In April 2021, we sold Mad Dog Jones’ NFT REPLICATOR for $4.1 million—making him the most expensive living Canadian artist and minting his reputation in both the contemporary art world and the NFT space.

MAD DOG JONES REPLICATOR, 2021

Private Sales

In some cases, a client may wish to sell a work privately rather than at a public auction when there is a need for discretion or an expedited timeline. Phillips’ private sales continue to grow year after year. Our innovative and targeted approach combines personal relationships with market intelligence to connect artworks with the most likely buyers. Phillips’ Private Sales department provides our clients with a uniquely personalized approach to collecting with utmost discretion in mind. Phillips provides private selling opportunities across all of our collecting categories. Clients benefit from the company’s network of international specialists and advisors whose extensive expertise can help ensure the best results for you. Transactions are executed rapidly with no need to wait for a future auction, and with complete confidentiality when the details of a particular work or ownership is particularly sensitive.

2024 saw the successful launch of PhillipsX on Shopify, a significant milestone for Phillips’ e-commerce platform, replacing the Exhibitions section on the website and elevating Phillips’ digital capabilities.

Through PhillipsX, our influence extends beyond the realm of auction and into the broader global cultural landscape by offering a boundary-less discovery, selling, and buying experience based on the traditional retail gallery model. In addition to filling our Phillips flagship buildings in New York, London, and Paris, we expanded our footprint globally, mounting exhibitions for the first time in our LA and Hong Kong spaces and hosting pop-ups in Singapore and Antwerp. In 2024,

Phillips hosted 27 private sale exhibitions across 10 countries, including New Terrains , a watershed exhibition of important works of contemporary Native American art; Stillness: Hammershøi and American Minimalism, a historically significant exhibition offering a unique exploration of the connections between the works of Danish artist Vilhelm Hammershøi and major American Minimalists; and Gilot, Une Vie, an exhibition of paintings by Françoise Gilot.

In addition to our fine art private selling platform of PhillipsX, Phillips also is host to Perpetual, a first of its kind platform that combines private selling exhibitions, innovative partnerships, and a boutique experience in custom-built surroundings at our Berkeley Square gallery, specifically for the sale of watches. Through the Perpetual platform, we offer the more commercial property through the website phillips.com/perpetual, and the vintage and specialized pieces in a boutique setting where clients are encouraged to view and handle the property in person.

Appraisals

Phillips provides USPAP-compliant fair market and retail replacement value appraisals, which can be critical tools for managing your art collection and establishing its overall value. From a single work of art to a collection of hundreds of objects, Phillips offers appraisal services that span all specialist departments and collecting categories. Whether it be a retail replacement appraisal for your insurance coverage or a fair market value appraisal for a museum donation, appraisals are critical to establishing the current value of your works and helping to plan for the lifespan of the collection. Produced as thorough, illustrated reports, Phillips’ appraisals meet all industry standards and are tailored to fit your specific needs and timeline.

Insurance appraisals are used to manage the risk associated with owning an art collection. These reports are submitted to one’s insurance carrier to protect art assets from theft, damage, fire, flood, or other unforeseen circumstances. Insurance appraisals are generally based on retail replacement values, which is the amount it would cost to replace the lost or damaged work within a reasonable period of time, particularly in a retail venue. As retail replacement values are guided by the primary market, these values are typically higher than fair market values which are derived by the secondary auction market.

Fair market value appraisals are utilized for the following purposes:

• Financial Planning

• Loan Collateral

• Estate Tax

• Gift Tax

• Charitable Donation

• Establish Cost Basis

These values are based on what a work would reasonably achieve in the marketplace between a willing buyer and willing seller. Qualified appraisers utilize secondary market comparables available on public databases, as well as knowledge of the retail sector and private sales, to determine an appropriate fair market value.

Understanding your artwork’s value is very important to planning the lifespan of your collection. Several reasons for obtaining appraisals include determining and maintaining appropriate insurance coverage; making gifts to family members and complying with the necessary tax requirements; making charitable gifts and verifying applicable income tax deductions; determining the estate taxes due and making distributions when settling an estate; engaging in art-based lending from participating financial organizations. Particularly for loan collateral appraisals, Phillips is the preferred appraisal firm for many banking institutions due to our commitment to providing sound and professional appraisals with the utmost discretion and timeliness.

Estate Administration

The Phillips Professional & Advisor Services department offers services to private clients, professional advisors, fiduciaries, attorneys, estate executors and beneficiaries for the valuation and sale of tangible property. Every estate has unique needs and decision makers, and the Phillips team will help you navigate the often-complicated process of managing your collection and its disposition from generation to generation.

We are here to assist with seamless estate administration from tax-related appraisal needs to tailored guidance through the auction process and ultimate settlement of sale proceeds. Your dedicated Phillips representative will manage all aspects of the pick-up of property and shipment to Phillips’ salerooms, as well as the disbursement and sale of any property more appropriately sold through a third party firm. We will oversee your bespoke marketing campaign to ensure that the vision and personality of the collector is highlighted for potential buyers and that we honor the owner’s legacy and wishes for their estate.

We understand that managing an estate can be an emotional and challenging process. With years of experience in this area, our Professional & Advisor Services team will provide you with a highly personalized service that sets us apart from the competition.

Museum Services

As market leaders in the categories of 20th Century & Contemporary Art, Editions, Photographs, Design, Jewelry and Watches, Phillips’ specialists are qualified to evaluate works for museums, foundations, educational institutions and corporate collections. We are acutely aware of the unique needs of institutions. Whether valuations are required for a specialized insurance policy, a Federal Indemnity application, a travelling exhibition loan or a collection review, Phillips can provide an appraisal to suit the specific needs of an institution, large or small. We are prepared to work seamlessly with museum, colleagues or third-party vendors to ensure an easy process for any institution and its collaborators.

It is our honor to serve you and your collection using Phillips’ combined expertise and resources. If you would like to learn more about our services, please reach out to Rachel Atkinson Marrin, Director of Professional & Advisor Services.

We look forward to partnering with you.

RACHEL ATKINSON MARRIN Director of Professional & Advisor Services

+1 917 692 1357 rmatkinson@phillips.com