High net worth (HNW) art collectors need to combine their passion for collecting with a strategic purpose to make sure their investments maintain their value over the long term, HSBC Private Bank has argued.

The private bank added that collectors focusing on passion and purpose would help ensure they leave a legacy for their family and society.

Its Art of Preservation report set out practical considerations for HNW and ultra HNW individuals on how they can shape and manage their art collections to protect and grow their investments.

HSBC Private Bank encouraged HNW art collectors to ensure they have a clear purpose so they understand how much emotional value they have in each artwork and the extent each piece should be assessed as part of their wider financial assets.

Furthermore, the bank highlighted the importance of clear communication within families to ensure a smooth transition across generations.

It said that family members should share the same vision for a collection’s future ownership, control, and management, and understand the responsibilities and costs associated with maintaining artwork.

“From national galleries to private patrons, collectors preserve, protect and showcase art to be appreciated by future generations,” said HSBC Private Bank a.i. CEO, Gabriel Castello.

“But building such a legacy requires thought and planning. Collecting and managing art needs a clear purpose, and it is vital to have open conversations with family members.

“With care and vision, private collections can become legacies that enrich societies for generations to come.”

HSBC Bank Middle East Limited CEO, UAE, Mohamed Al Marzooqi, added: “Art and culture, like trade and finance, flourish on openness and exchange.

“By bringing Emirati artists from Hong Kong to London, we are showcasing the UAE’s growing role as a hub that bridges East and West.

“HSBC’s support for Abu Dhabi Art reflects our belief that cultural dialogue is as vital to long-term prosperity as capital flows – both help shape the relationships and understanding that underpin global growth.”

---