- Jul 13, 2006
- 4,782
http://www.theclassiccarfund.com/
was in WSJ, Bloomberg, FT, etc...informational / reading pleasure only.
STRATEGY
The Fund will, under normal circumstances, invest 20% - 100% of its assets in Classic Cars. Whereas, it is expected that on average about 70% of the Fund’s assets will be invested in Classic Cars, the weighting may be reduced to 0% if in the reasonable opinion of the Investment Manager.
In addition, some of the Classic Cars held in the portfolio of the Fund may be lent to museums, film studios, private exhibitions, etc. The income generated by such Lending Activities will only ever favour the Fund.
A particular focus will be laid on equities of the automotive industry and closely related industries including precious metals.
In addition, the Investment Manager may invest on an ancillary basis, in various assets, including derivatives and futures, which may be designed to minimize risk or for hedging purposes. The Fund may also have residual cash balances invested in deposits, money market instruments and shares or units in money market funds.
CLASSIC CAR
A car typically depreciates in value during the first fifteen years from its production date and may, under certain circumstances, increase in value thereafter. Accordingly, a classic car can generally be defined as:
A car which is at least 15 years old and is of particular (i) rarity, (ii) desirability and (iii) original value/provenence (“Classic Car”).
SELECTION PROCESS
The Investment Manager permanently screens realised sales prices for Classic Cars which periodically get reported by independent providers in order to assess overall market conditions for classic cars and recognise the formation of certain market trends.
The Investment Manager believes (i) the rarity, (ii) the desirability and (iii) the original value/provenence to be the key drivers for future value appreciation of a Classic Car. Based on these factors the Investment Manager tries to classify Classic Cars in five different categories:
The Investment Manager believes that especially Type I Classic Cars have the potential for future value appreciation.
Prior to acquiring a particular car, the Investment Managers conducts a thorough due diligence of that car, analysing inter alia factors such as its ownership history, optional equipment, engine details, replacements of original equipment, etc.
was in WSJ, Bloomberg, FT, etc...informational / reading pleasure only.
STRATEGY
The Fund will, under normal circumstances, invest 20% - 100% of its assets in Classic Cars. Whereas, it is expected that on average about 70% of the Fund’s assets will be invested in Classic Cars, the weighting may be reduced to 0% if in the reasonable opinion of the Investment Manager.
In addition, some of the Classic Cars held in the portfolio of the Fund may be lent to museums, film studios, private exhibitions, etc. The income generated by such Lending Activities will only ever favour the Fund.
A particular focus will be laid on equities of the automotive industry and closely related industries including precious metals.
In addition, the Investment Manager may invest on an ancillary basis, in various assets, including derivatives and futures, which may be designed to minimize risk or for hedging purposes. The Fund may also have residual cash balances invested in deposits, money market instruments and shares or units in money market funds.
CLASSIC CAR
A car typically depreciates in value during the first fifteen years from its production date and may, under certain circumstances, increase in value thereafter. Accordingly, a classic car can generally be defined as:
A car which is at least 15 years old and is of particular (i) rarity, (ii) desirability and (iii) original value/provenence (“Classic Car”).
SELECTION PROCESS
The Investment Manager permanently screens realised sales prices for Classic Cars which periodically get reported by independent providers in order to assess overall market conditions for classic cars and recognise the formation of certain market trends.
The Investment Manager believes (i) the rarity, (ii) the desirability and (iii) the original value/provenence to be the key drivers for future value appreciation of a Classic Car. Based on these factors the Investment Manager tries to classify Classic Cars in five different categories:
The Investment Manager believes that especially Type I Classic Cars have the potential for future value appreciation.
Prior to acquiring a particular car, the Investment Managers conducts a thorough due diligence of that car, analysing inter alia factors such as its ownership history, optional equipment, engine details, replacements of original equipment, etc.
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