Australia’s first collectable automotive investment fund, CHROME TEMPLE Investments (CTi) Mach 1 fund, has received the first $5 million commitment towards its $20 million target from wholesale investors.

CTi aims to target vehicles that are on a near-term trajectory to surpass their original sale price, with the potential to become future classics.

Co-founders Lex Pedersen and Sam Fuller saw the opportunity to invest in a luxury vehicle fund, as well as gain access to a suite of sophisticated storage services that will support the fund assets through vehicle transportation, storage, detailing and maintenance.

“We are focused on cars that represent everything that the future doesn’t; large engine capacity, 8+ cylinders, analog inputs like manual gearboxes and no overbearing electronic aids,” Mr Pedersen said.

“Some examples include cars like our 2000 Lamborghini Diablo or the AMG SLS Gullwing. While other collectors and funds look further back in time, we view the rapidly changing state of global emission and electric/autonomous to be the largest contributor to the changing opportunity of tomorrow’s classic cars.”

Figures supplied in the 2019 Knight Franks Luxury Investment Index show that over the past ten years, classic vehicles have outperformed stock markets with a shocking 194 per cent return rate.

“Of all the passion asset classes, cars has some of the most passionate collectors, of all ages and socio-economic denominations, and that’s why it largely outperforms other passion assets,” Mr Pedersen said.

“There truly is a cult culture behind cars of beauty. History has shown people want what they can’t have. So, we find ourselves in a unique position to amass a collection of exceptional cars to create tomorrows’ next eggs.”

The fund is aiming for eight per cent to ten per cent annual returns, net of fees and costs, with an average vehicle hold period of 2.5 years.

To provide investors with transparency and insight into the performance of the fund, independent vehicle valuations will be conducted on a quarterly basis.

To learn more about CHROME TEMPLE Investments Mach 1 Fund, contact investments@chrometemple.com

14 December 2020