Florian Leonard Fine Violins
Is it rewarding to invest in music instruments as an asset class?
In a contemporary setting, antique stringed instruments have proved to be an excellent alternative investment. The fact that we cannot source fine wood that was used by the old craftsmen - makes these fine instruments irreplaceable items. The potential returns offered are virtually uncorrelated with any other asset class, hold steady over time and are lucrative. In comparison, the risks are low and inexpensive to hedge.
What is the size of the market currently, the rate of growth and the prospects of investing in this asset class?
The market for fine instruments is presently valued at approximately USD 22 billion. It continues to grow as instruments crafted by newer makers have gained in importance. Depending on which era of violin making one chooses to invest in, growth should follow the trends of the past 50 years, wherein it returned 8-15% annually. I actually think this is sustainable over the next decade.
Focus: The fund invests primarily in equities of companies that comply with the principles of ecological and social sustainability.
Multi-level asset diversification (across geographic areas, styles, market capitalisation, sectors) has been executed to diffuse risk concentration and enhance performance.
Strengths: high level of expertise, adherence to stringent sustainability guidelines, strong partnership with WWF
Weaknesses: exhibits a high correlation to stock markets.
IIG Trade Opportunities Fund NV
Focus: The IIG Trade Opportunities Fund participates and in global trade finance transactions through a professionally managed portfolio. The fund offers superior, consistent a risk adjusted basis
Strengths: market neutral; flawless track record; proven expertise and demonstrated ability in implementing sophisticated deal structuring techniques
Practitioner s Point
Can art for art sake = art for pay sake ?
We invest in art as investors - with a financial hat on! Beautiful or not; our good quality art work that comes from good or great artists and can be acquired that lends itself to an appreciation of 40% in a year or is worth double the money years. We would rather invest in a great work by a second rate artist than a poor of the greatest artists.
Alegra ABS - I
Focus: The fund invests primarily in European subordinated Asset-Backed Securities (ABS).
Strengths: no down months, the fund has an above average risk/ return profile, with low volatility and minimal correlation to traditional investments. Well oiled network in sourcing ABS; demonstrated ability in analysing underlying collateral pool to stave off defaults.