Thank you for joining us today on this
ArtRatio Expert Interview, exclusively
for Sotheby's Institute of Art. I have
the pleasure to introduce Julie Gustafson,
who is President of Heirlooms On Video
and specializes in video histories for
private and institutional art collectors.
Now, previously Julie spent 28 years in the
wealth management sector, most recently
as Senior Vice President of U.S. Trust
in Chicago, coordinating the day-to-day
needs for high net-worth families in
investment management, philanthropy and trust services. Julie serves on several
committees including the 'School of the
Art Institute of Chicago' and the 'Special
Olympics of Illinois Foundation'. it's
great to have you with us today, Julie
Welcome! Well good morning Manoj and
thank you. It's so wonderful to be with
all of you here today. Thank you for
having me. While the concept of emotional
IQ is a buzzword and the subject of
countless seminars in the corporate and
business sectors, it also applies very
much to the art market. To be self-aware,
to engage in active listening and
above all to demonstrate empathy and
understanding. These are soft
characteristics that are often neglected
in prospect and client interactions.
Unlike the world of financial and
investment management that I was a part
of, the art market doesn't enforce strict
regulatory policies or adhere to defined
fiduciary standards and while it has
some structure, this is very much still a
'people business'. As a former wealth
advisor turned art professional, I
continue to witness and to learn about
the emotional and personal attachments
that my clients have, not only for their
collections but by extension to their
families and to the legacy that they hope
to leave behind. For many different
reasons
collectors keep these valuable assets to
themselves, or share them only with those
closest to them. Quick story: some years
ago I was asked to assume responsibility
for a family relationship following the
departure of their
long time wealth advisor. To prepare for
my first meeting with the family
I reviewed the existing files and the
most recent financial statement. I
noticed that the insurance premium
outlay was sky-high and it didn't match
up with the asset side. In my mind asset
values were either missing, mis-stated,
or they were paying far too much for
their insurance. As a routine practice
with new clients I always ask them to
walk me through the financials. I found it
an excellent way to plug in any gaps or
to obtain further clarification from
them. So I asked the patriarch about
these insurance expenses. Why were they
so high? The answer: the art collection,
worth an estimated 20 Million US
Dollars at the time was not included as
an asset. Why? and to quote him: "The bank
doesn't need to know about it, because I
don't need a loan. You're not getting it!".
So, in other words, he didn't view it as a
financial asset but as a highly personal
one. But I wasn't interested in pushing
a loan. I was interested in fostering a
relationship with them and over time it
was a privilege for me to get to know
them as people but also to view their
collection, and over time other works
that subsequently came into the
collection family. Above all else, I
learned a great deal from them and
developed a trusted relationship that  continues today.
Manoj, many thanks to you, and to all of the students, for allowing me to share my thoughts.
And I wish all of you the very best of luck and success.
Julie, it was a real pleasure. Thank you for sharing these experiences with us and have a great day.
You too, thank you !
