Unique Investment Class Uncorrelated to Traditional Markets

A Unique Investment Class Uncorrelated to Traditional Markets

Protecting family wealth across borders remains at the heart of how TIMC works with its clients, including identifying investment strategies that are not dependent on any single country, market, or economic cycle.

In line with our commitment to careful and disciplined evaluation, TIMC recently traveled to Calgary to meet with our new partner and gain a deeper, firsthand understanding of the ICM Crescendo Music Royalty Fund, a uniquely positioned strategy rooted in the music royalty asset class, where value is driven by global consumption rather than traditional market forces.

Built around music royalty rights, this globally diversified asset class offers compelling growth potential as global music consumption continues to expand. We sat down with Mr. David Vankka to share insights into how the Fund works and how it may fit within a long-term wealth preservation framework.

Mr. David Vankka, Portfolio Manager, ICM Crescendo Music Royalty Fund

TIMC: For our international clients, can you explain what the Fund is and what sets it apart?

David Vankka: The ICM Crescendo Music Royalty Fund acquires music catalogues and earns royalties whenever those songs are streamed, played, or licensed across platforms like Spotify, YouTube, TikTok, and more. With nearly 6,500+ songs tied to global artists, it is likely the only evergreen fund of its kind.

Its income comes from worldwide music consumption; every play generates royalties, regardless of platform or location.

TIMC: To what extent are music royalties correlated with public markets, and how should investors think about this asset class in terms of diversification benefits?

D. V.: Music royalties are largely uncorrelated to public markets, as listening habits remain steady regardless of economic conditions. Unlike real estate or credit, which depend on local dynamics or individual borrowers, royalty income is instead driven by global music consumption.

This consumption translates into revenue primarily through streaming, complemented by live performance and synchronization. Importantly, these payments are made by some of the world’s most well-capitalized companies (leading technology platforms, streaming services, and social media networks), providing a strong and dependable counterparty base. Beyond the strength of these payers, the income stream is further reinforced by its global diversification.

Within this ecosystem, synchronization, which is licensing music for film, television, gaming, and advertising, can be particularly impactful, generating upfront fees and often catalyzing additional streaming and audience engagement.

Taken together, the combination of platform diversity, geographic breadth, and varied use cases means no single market or payer dominates, underscoring music royalties as a resilient and increasingly compelling asset class.

TIMC: In your experience, what role can music royalties play in preserving both capital while ensuring stable growth and continuity across generations within a family portfolio?

D. V.: Music is a distinctive asset class, with value that has remained resilient even during major market downturns. The rise of streaming has further strengthened its growth profile, supported by long-term global consumption trends.

From a generational perspective, its defining feature is duration. While most assets evolve over shorter timeframes, music copyrights last for decades, typically 70 years after the death of the last surviving artist. In practice, this can mean holding rights for over a century, all supported by well-established copyright laws.

At the same time, global streaming continues to expand, particularly in emerging markets where adoption is still in early stages. As these regions mature, their contribution to overall asset growth is expected to increase.

This combination of long-duration rights, minimal ongoing costs, and global exposure positions music royalties as a compelling asset for long-term capital preservation and stable, multi-generational growth.

TIMC: During periods of economic uncertainty, how have music royalties historically performed compared to traditional asset classes?

D. V.: Music royalties are not driven by traditional economic cycles; consumption persists and continues to grow regardless of market conditions. Music is embedded in everyday life, from celebrations to commutes, and its use has remained constant through events such as COVID, geopolitical tensions, and economic uncertainty. If anything, demand often strengthens during uncertain times.

The underlying driver is not economic variables, but human behavior, consistent, habitual, and global. It is consumed across a wide range of formats, from streaming to social media, video, gaming, and user-generated content, particularly among younger audiences where it is deeply integrated into daily digital activity.

Unlike equities or real estate, which respond to sentiment or credit conditions, music continues to be streamed, shared, and used as part of daily life.

TIMC: Is there a relevant benchmark or index that investors can use to compare the performance of a music royalty fund?

D. V.: There is no widely established benchmark for this asset class, reflecting how differently it behaves from traditional investments. Direct comparisons to equity indices or credit spreads are often less meaningful.

Instead, it is better viewed as an absolute return strategy designed to perform across economic environments. The key questions are whether growth is consistent and predictable, whether portfolio value is stable or growing, and whether it enhances resilience alongside other assets during periods of stress.

In practice, music royalties have demonstrated these qualities, continuing to grow when other asset classes faced pressure. As such, they are best understood as a diversifier within a broader portfolio, particularly for investors focused on long-term capital preservation.

TIMC: Music has endured as a universal human expression across time and civilizations. How does this deep-rooted permanence shape your conviction in its long-term investment value?

D. V.: Music’s emotional connection, rooted in memory and nostalgia, keeps listeners returning to the same songs over time.

Music royalties are driven by a simple, enduring behavior: people listening to music.

What has evolved is the infrastructure; digital streaming has created a global, scalable distribution network, with new platforms adding revenue without requiring further investment, as the rights are already owned.

That is the foundation of our conviction. Music consumption remains constant, while the systems that monetize it continue to expand, supporting durable growth over time.

TIMC: For our high net-worth clients focusing on their legacy, how would you position music royalties within a long-term wealth preservation strategy?

D. V.: For global investors, the proposition is straightforward: exposure that is not anchored to any single country, currency, or economic cycle. The underlying driver is worldwide music consumption, unfolding across platforms, geographies, and time zones.

Growth is rooted in the asset rather than financial structuring. The ICM Crescendo Music Royalty Fund is conservatively designed, without reliance on leverage at the fund level, allowing performance to reflect the natural expansion of the ecosystem in which it operates.

At its core, the asset is intuitive; ownership of music. A form of global expression consumed daily, protected by long-duration copyright, and increasingly distributed through a rapidly evolving digital infrastructure.

For families thinking across generations and borders, it offers participation in a durable and expanding global system, one that continues to grow alongside the ways in which people engage with music.

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