Case Study | Artistic patronage harmonizing finance & culture The Charitable Museum Endowment Fund | Página 4

Art & Finance Report 2017 |
 Section 2 - Art and wealth management survey
As a laboratory of experiences, and
research center, COLLEGIUM depicts a
society of revitalized communities where
all people—local residents and visitors
alike—are inspired by the transformative
power of art to shape our understanding
of ourselves and improve our collective
quality of life.
A total surface area of 12,020m 2 will
house COLLEGIUM’s ambitious program,
comprising 4,000m 2 of exhibition space,
3,300m 2 of public space, 1,300m 2 of archive
and research areas, 750m 2 for workshops
and artists’ residencies, 2,000m 2 for
other facilities (including a specialized
conservation center), and 250m 2 for the
foundation’s hub. The project will create
a connected space in which the thread of
history is woven into the reality of modern
culture. This experimental museographic
concept projects itself into the 21st
century breaking away from the traditional
white-cube appearance by blurring the
boundaries between the exhibition,
production, conservation, and research
areas and creating a dynamic relationship
among them.
Designed by the acclaimed Mexican
architect Tatiana Bilbao, the museum
aspires to be part of a multicultural and
plural experience in which the city of
Arévalo is the jewel in the crown.
The Fundación Lumbreras—Colección
Adrastus soon realized that this
undertaking would be highly challenging.
Not only because it involves the laborious
restoration of 16th century ruins –
amongst the new building additions– but
also because the time and financial
resources available could not be forever
capable of subsidizing the operational
expenses and financing the ambitious
program planned for COLLEGIUM in the
absence of its founders. Museums are
becoming more than mere places to
exhibit objects. Nowadays, they act as
agents of change and development in
the community through the creation of
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innovative programs, stimulating projects
and educational events that encourage
social well-being. With the creation of over
317 contemporary art museums in the
last 15 years, the competition for grants
from governments and private foundations
has never been tougher, and this has now
become a serious concern among most
private and public museum endowments
around the world. Some performance-
limiting factors in fundraising are: (i) a lack
of governmental and private donors, (ii)
aging boards, (iii) rising operational costs
associated with recruiting and retaining
top talent, and (iv) the escalating price of
ambitious art programming. That is why
Javier Lumbreras created The Charitable
Museum Endowment Fund.
maintaining programs and acquisitions
for permanent collections, expansion, or
renovation schemes; improving visitor
services; and even balancing budget
deficits.
The Charitable Museum Endowment
Fund’s assets are being invested in a well-
diversified portfolio of fine art pieces by
universally recognized artists. The main
investment objective of the partnership
is to earn an attractive rate of return
and seek capital appreciation for socially
responsible, community-minded members.
The Master Fund is expected to run into
the billions of dollars and will maintain a
diversified portfol io of wholly and partially
owned art investments with varying
holding periods.
The Master Fund is expected to run into
the billions of dollars and will maintain
a diversified portfolio of wholly and
partially owned art investments with
varying holding periods.
With a strong background in art and
finance, and a deep concern to build a
self-sustaining mechanism for his own
foundation’s sake, Lumbreras decided to
create a charitable investment vehicle to
assist collections, foundations and existing
museums in the creation and funding of
their respective permanent endowments.
With over 30 years of experience in the art
market, and having successfully launched
and closed the Artemundi Global Fund
(17.02 percent average return per annum),
Lumbreras realized that it was time for
the art market to give something back to
the art world. The Charitable Museum
Endowment Fund’s main objective is to
produce investment returns to fund non-
profit endowments for museums and other
cultural institutions. The uses of resources
include, but are not limited to, creating and
The Master Fund’s capital is being invested
in artworks from artists with proven track
records from the late 19th and early 20th
centuries, including artistic categories such
as Impressionism, Post-Impressionism,
and Modernism. In addition, a significant
percentage of the Master Fund’s portfolio
also comprises blue-chip Post War and
Contemporary art with a solid secondary
market. The Charitable Museum
Endowment Fund provides a much-needed
collaboration to artistic patronage aiming
to increase social welfare.