The Australian Chamber Orchestra Instrument Fund is a world first. It was created in 2011 to purchase high-quality stringed instruments which are lent to the Australian Chamber Orchestra (ACO) for use by its players. The Fund is a unit trust, with some units owned by the ACO and others by wholesale investors. The Fund owns Australia’s only Stradivarius violin, purchased in 2011 for $1.79 million, and a 1714 Joseph Guarneri filius Andreae violin, purchased in 2014 for $1.65 million. Unit-holders have experienced increases in the unit price in 2013, 2014 and 2015.
Australian Chamber Orchestra Instrument Fund
The Initiative
Purpose of capital
To purchase high-quality stringed instruments for ACO players’ use, and to achieve long term capital gain for investors.
Scale of impact
Instruments are used by the ACO both domestically and internationally in regular concert Scale of impact programs. Students and audiences in metropolitan and remote regional areas have access to
the highest quality sound via the ACO’s Regional Touring and National Education Programs.
Timeline
The Fund was established in 2011. The Fund purchased its 1728/29 Stradivarius violin the same year, and a 1714 Joseph Guarneri filius Andreae violin in 2014.
The Investment
Investor/s
Private wholesale investors and the ACO.
Investee
Australian Chamber Orchestra Instrument Fund.
Investment structure and terms
Private investment
- Cornerstone investment by the ACO with some units retained by it on behalf of donors, and remaining units available for sale to private wholesale investors (minimum investment of $50,000)
- New units are issued for the purchase of each new instrument.
- The investment objective is to achieve long term capital gains for investors.
- The Fund will be terminated after 10 years (in 2021) or at 5 year intervals subsequently, unless 51% of unitholders (excluding the ACO) vote to continue the Fund at specially convened meetings.
- JBWere Ltd is the Australian Financial Services Licence holder
Corporate capital
- N/A
Bank finance
- N/A
Impact fund Investment
- N/A
Arranger/Lead
None
Source of deal
The idea for a Fund originated from within the ACO.
The Impact
Social, cultural or environmental impact
The Fund’s instruments contribute to Australia’s cultural landscape, providing thousands of people with the opportunity to attend performances enhanced by these instruments, helping to support the future of music in Australia. The instruments enhance the reputation of the ACO so it can attract the highest calibre of musicians from all over the world. The instruments are also played as part of the ACO’s National Education Program which educates and inspires students and teachers at every level of the educational system across regional and metropolitan Australia.
Financial Return
Financial return
Units in the Fund have gained 40% in value since the Fund’s launch in 2011, from $1.00 a unit Financial return to $1.40 (31 March 2015). Instruments are formally re-valued at least every 3 years with informal valuations occurring at least every 2 years.
Other
Future opportunities
The Fund hopes to purchase additional instruments in the future.
More information
