AUSTRALIAN CHAMBER ORCHESTRA - Amazon … is that it has a soul and a personality of its own. For the violinist, this means that the ... Australian Chamber Orchestra ...

This Fund is only available to wholesale clients.

AUSTRALIAN C H A M B E R ORCHESTRAINSTRUMENT FUND

BROCHURE

Peter Weiss ao Patron, ACO Instrument FundIn 2007, Peter Weiss AO, one of Australia’s greatest arts philanthropists, a passionate lover of the cello and long-standing and generous supporter of the ACO, acquired a rare 1729 Guarneri filius Andreæ cello to be played by the ACO’s Principal Cellist, Timo-Veikko ‘Tipi’ Valve. The instrument was acquired for a substantial sum and has since greatly increased in value.

Peter also led the way with an unprecedented gift, the largest in the ACO’s history, to assist the Fund to acquire its first asset, the 1728/29 Stradivarius violin. Peter’s generosity to the ACO, both now and over more than two decades, is unparalleled and we are honoured that he has accepted our invitation to become the Patron of the Instrument Fund.

The Australian Chamber OrchestraThe ACO is recognised as one of the finest chamber orchestras in the world. It is renowned for the integrity and excellence of its musicianship, the boldness and vitality of its programming and the loyalty and enthusiasm of its audiences and supporters.

A dedicated troupe of diverse musicians, the ACO performs all over the world from red-dust regional centres of Australia to New York night clubs, from Australian capital cities to the world’s most prestigious concert halls including Amsterdam’s Concertgebouw, New York’s Carnegie Hall, London’s Wigmore Hall and Vienna’s Musikverein.

The ACO has recorded for the world’s top labels, including EMI, Sony, Chandos, Hyperion and BIS. Recent recordings have won three consecutive ARIA Awards, and documentaries featuring the ACO have been shown on television worldwide and won awards at film festivals on four continents.

Internationally, critics recognise the ACO’s quality and the unique Australian style it reveals on the world stage.

“ The best chamber orchestra on earth.”

The Times (UK)

“ The energy and vibe of a rock band with the ability of a crack classical chamber group.”

Washington Post

“ If there’s a better chamber orchestra in the world today, I haven’t heard it.”

The Guardian (UK)

“ Tognetti’s musical revelations charged his forces and transfixed the audience.”

The Australian

2Left: Peter Weiss ao and Timo-Veikko ‘Tipi’ Valve, Principal Cello

Message from Richard Tognetti ao Artistic Director, ACOI salute the leadership shown by the Commonwealth Bank, Peter Weiss, and the owners of the other fine instruments on loan to members of the Australian Chamber Orchestra, in bringing fine instruments to Australia, to be played by the Orchestra, for all Australians and music lovers around the world to appreciate.

I invite you to emulate their vision by investing in the ACO’s Instrument Fund so that we may continue to build on the collection of fine instruments held in this country.

“ Antique violins could add a lucrative string to a portfolio’s bow.”

Financial Times Magazine

Right: Richard Tognetti ao, Artistic Director

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Above: 1714 Joseph Guarneri filius Andreæ violin

Key features of the ACO Instrument Fund

“ A work of art, beautiful to behold on an aesthetic level, a valuable antique, a useful and practical tool supplying the most wonderful music in the hands of a dedicated professional. To purchase one and sponsor an artist, allowing the artist to ply his trade with the best available tool, is both an investment and an act of philanthropy, giving joy to innumerable concertgoers and CD buyers.”

Private Wealth Investor magazine

• The ACO Instrument Fund (‘the Fund’) is an unlisted Australian unit trust, available only to wholesale clients.

• The Fund offers investors the opportunity to participate in the ownership of a bank of historic stringed instruments which are lent by the Fund to the ACO.

• The investment objective is to achieve long term capital gains.

• Wholesale investors wishing to invest in the ACO Instrument Fund should request a copy of the Information Memorandum.

• The application price is the unit price determined by the Trustee based on the net asset value per unit.

• The Trustee will make limited withdrawal opportunities available to unitholders every three years.

• The Fund will be terminated after 10 years, unless more than 50% of unitholders vote to continue the Fund. The ACO will not be entitled to vote its units on a winding up.

• The Trustee of the Fund is Australian Chamber Orchestra Instrument Fund Pty Ltd. The Trustee does not hold an Australian Financial Services Licence. The Trustee has an arrangement with JBWere Ltd (AFSL 341162) under which JBWere offers to arrange for the Trustee to issue units in the Fund.

• The Manager of the Fund is Australian Chamber Orchestra Pty Ltd.

• This document is intended to provide an overview only of some of the key features of the Fund and the benefits of investing in fine instruments in general. Its terms are not intended to be relied upon as the basis on which an investment may be made in the Fund.

• All investing involves risk and the specific risks of investment in this Fund are explained in the Information Memorandum.

Left: Maxime Bibeau, Principal Double Bass

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Why invest in the ACO Instrument Fund?The Fund’s assets have performed strongly to date.

The Fund was launched in June 2011 with a unit price of $1.00. The unit price was increased to $1.40 in February 2015.

Note: Past performance is not a reliable indicator of future performance.

There are no ongoing management fees payable out of the Fund.

As well as its potential financial return, an investment in a fine instrument represents a strong philanthropic commitment, in this case supporting the ongoing success of Australia’s most revered performing ensemble.

By investing in the Fund, investors are contributing to Australia’s cultural landscape, providing thousands with the opportunity to attend performances that could not be achieved with lesser instruments and helping support the future of music in Australia.

It is rare that an investment opportunity arises that offers the potential for such a range of returns on so many levels. Investment in Fine

InstrumentsThe market for fine instruments is global, with increasing demand driven in recent years by the rising popularity of western classical music in Asian markets, particularly China, Japan and Korea.

Research conducted by the ACO into fine instrument sales indicates that while returns from public sales may be 6-8%*, returns from private sales can reach 8-10%+.

• Between 1980 and 2005, available auction price data for Stradivarius violins indicates an average annual increase of 10.4%.

• Investment returns on violins remain stable and have a low correlation with rises and falls in the world equity markets.

• A comparison with classic cars, wine and art shows a steady increase over the 10 years from 2003 to 2013.^

“ …the market is strong, particularly at the upper end… The continuing uncertainty in the financial and currency markets have encouraged many buyers to jump in.”

Simon Morris J. & A. Beare and Co.

Left: Mark Ingwersen, Violin

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* ’Fiddling with Value, Violins as an investment?’ Graddy, K and Margolis,Philip E, Centre of Economic Research and Policy, London, 2007.

+ J. & A. Beare and Co. of London, the world’s most distinguished international violinexperts and dealers.

^ Sources of information: Artprice; ‘Vintage Guitar magazine’; Florian Leonhard Fine Violins; Historic Automobile Group International; Liv-Ex; Stanley Gibbons; Thomson Reuters; ‘The Economist’.

The Golden Age of Stringed Instruments

The finest stringed instruments ever made – violins, violas, cellos and double basses – were crafted in Italy during the 17th and 18th centuries when the art of the luthier, or instrument maker, was at its peak.

Five makers in particular represent the pinnacle of their craft: Nicolò Amati (1596–1684), Antonio Stradivari (1644–1737), Joseph Guarneri filius Andreæ (1666–1739), Giuseppe Guarneri del Gesù (1698–1744) and Giovanni Battista Guadagnini (1711–1786).

Among the unique qualities of the instruments from this period is the longevity of their performing lives and the maintenance or improvement of tonal qualities over time. In fact, age itself may contribute to the unique sound of these instruments and their increasing value.

The Instruments in the FundThe 1728/29 Stradivarius violin

The first instrument acquired by the Fund for $1.79 million is a composite of two instruments made by Antonio Stradivari in 1728/29. The violin was tested in major concerts halls across Australia. In acoustic tests across a wide variety of repertoires and styles, and in halls ranging from small and medium regional centres through to our greatest performance venues, it consistently displayed all the hallmarks of the great Stradivarius violins. This beautiful instrument was entrusted to Principal Violin Satu Vänskä. She says:

I will never forget the feeling, when I was handed this instrument to play for the first time… a Stradivarius, the epitome of fine violins. Its distinctive, brilliant beauty of sound carries in a concert hall through the ears, straight to the listener’s heart.

Part of the mystery and fascination of a fine Stradivarius is that it has a soul and a personality of its own. For the violinist, this means that the violin seems to play the player.

The 1714 Joseph Guarneri filius Andreæ violin ‘ex Isolde Menges’

Purchased by the Fund in 2014 for $1.65 million, this magnificent violin made by Joseph Guarneri filius Andreæ in 1714 comes with an impeccable provenance. It was previously owned by Isolde Menges, a renowned English violinist and pedagogue in the early 20th century. In a letter signed by Alfred Hill of W.E. Hill & Sons, he says: ‘… I consider the violin by Joseph Guarnerius filius Andreæ … a very interesting example of the maker’s work inasmuch as certain features – the head more especially so – clearly denote the participation therein of del Gesù, consequently, the instrument may justly be regarded as their joint production… Its aspect is certainly picturesque, its construction, first-rate and the varnish, of the finest quality!’

Tim Calnin, General Manager of the Australian Chamber Orchestra says:

When the 1714 Guarneri was tested side-by-side with the three other extraordinary violins played by ACO musicians – the 1743 Guarneri del Gesù on loan from an anonymous benefactor, the 1759 Guadagnini on loan from the Commonwealth Bank and the Fund’s own 1728/29 Stradivarius – the “new” instrument stood up boldly, proudly and distinctively as a truly great violin from the golden age of Cremonese violin-making.

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ACO Instrument Fund Confirmation of Wholesale Client Status

Participation in the ACO Instrument Fund is for ‘wholesale clients’ only, as defined under section 761G of the Corporations Act 2001 (Cth).

If you are not a ‘wholesale client’ you should immediately return this Information Memorandum to the Trustee.

Definition of a ‘wholesale client’

You will be a ‘wholesale client’ under the Corporations Act 2001 (Cth) if:

a) (professional investor): you are a ‘professional investor’ (as defined in Section 9 of the Corporations Act 2001 (Cth)).

For example: you are an Australian financial services licensee; or you are a listed company or a related body corporate of a listed company; or you control at least $10 million; or

b) (accountant’s certificate): the units in the Fund will not be acquired by you for use in connection with a business and you have given the Trustee a copy of a certificate given within the preceding two (2) years by a qualified accountant, which states that:

• you have net assets (including the net assets of companies or trusts controlled by you) of at least $2.5 million; or

• your gross income (including the gross income of companies or trusts controlled by you) for each of the last two (2) financial years was at least $250,000.

In these circumstances, a company or trust controlled by you personally will also be a wholesale client.

If you are a wholesale client under another test in the Corporations Act 2001 (Cth), please contact the Trustee for further information.

Australian Chamber Orchestra Instrument Fund Pty LtdPO Box R21Royal Exchange NSW 1225T 02 8274 3800F 02 8274 3801E [email protected]

Right: Satu Vänskä, Principal Violin, with the Fund’s 1728/29 Stradivarius violin

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Australian Chamber Orchestra Instrument Fund Pty LtdABN 63 147 806 424 PO Box R21Royal Exchange NSW 1225T 02 8274 3800F 02 8274 3801www.aco.com.au

All ACO Musician Photography by Pierre Toussaint, except page 2: Peter Weiss & Timo-Veikko Valve (Jack Saltmiras); page 7: Satu Vänskä (Jonathan May); front cover, page 3 and back cover Guarneri violin (Jack Saltmiras).