The Index was developed, initially as a guide for ACIM's managers in order to watch the price action on specific guitar models that would likely be acquired for The Guitar Fund (the "Fund"). The Fund, which is being re-launched this month, is structured as an offshore, closed end, $100 million investment strategy within the Collectibles asset class. Its objective is to invest in highly sought after vintage and rare guitar models as well as memorabilia guitars, which were once owned by famous artists and were important to both their careers as well as to the styles of music they helped to develop.
Byrne went on to say, "The combined components of the Index survived two separate market down-turns (Dot-Com Bubble Burst 2000-1 and the Global Credit Crisis 2008-12) over the past 13 years without hitting negative territory. The Index has increased over 312% since 2000 with an average annual return ("AAR") of 24% and 440% over the past 17 years delivering an AAR of nearly 26%".
Vintage guitars have consistently outperformed more mainstream Collectibles such as wine, watches and art over the past 20 years and the Managers of the Fund believe that there is currently a buying opportunity in the vintage guitar market.