Stringing along an investment

YOU can invest in just about everything nowadays - even vintage violins. The Fine Violins Fund has already raised $30m and aims to raise $100m.

Stringing along an investment

YOU can invest in just about everything nowadays - even vintage violins.

The new asset class is being pioneered by The Fine Violins Fund, which has already raised $30 million from investors.

The fund, run by former Lazard investment banker Francois Mann Quirici, will spend the money on antique musical instruments.

In the early days it will focus on buying violins and cellos made in the 18th and 19th centuries.

The first acquisitions will happen in the new year but with the average price of a violin around $1.7 million, the fund won't be able to buy many instruments until it raises more money.

Choosing the investments will be Florian Leonhard, a restorer of violins including those famous models made by Antonio Stradivari.

The idea of the fund is to find another asset class with returns that are not highly correlated to conventional stock and bond markets.

Big European pension funds are increasingly investing in such alternative assets, including areas like art, wine and forestry.

Apparently violins are a solid investment with a return of about 10 per cent a year, while restoration work from Leonhard could increase returns to around 15 per cent.

In common with art investments, returns only come from appreciation of the asset.

The violins and cellos generally don't pay an income because they are loaned free of charge to exceptional musicians in major orchestras.

The Fine Violins Fund is based on the Cayman Islands and has cellist Julian Lloyd Webber on its advisory board. It aims to eventually raise $100 million and has a minimum investment of $750,000.