Capitalising On Opportunity
Aligning With An Investment Proposition
Our objective with the CHROME TEMPLE Investments Mach 1 Fund (the “Fund”) is simple: make returns from the acquisition (buy low), hold, and liquidation (sell high) of high-performance vehicles - the kind that ignite your imagination. And while the premise may sound uncomplicated, the interpretation of ‘generating returns from performance cars’ can be interpreted in many ways, swayed this way and that, across multitudes of marques, models, eras and categories, by the personal prejudices of whoever you might ask.
When deciding where to invest hard earned capital, buying into the proposition (thesis), whatever the asset class, is an important consideration for many. And it’s no different for an alternative investment class, like cars, with each potential vehicle genre (current classic, future classic, muscle, pre-war etc) possessing its own merits, along with varying financial return and risk profiles.
Understanding and alignment with a fund’s thesis is ultimately a key component of any investment decision, as the thesis ultimately tells an investor where and how the fund plans to make its money. And it’s no different for the Mach 1 Fund, which is why we spent so much time validating our investment philosophy before launching. Across all the various components that go into a well governed and structured fund, our investment thesis is the Fund’s guiding north star behind every decision.
Capitalising On Opportunity: Rarity & Demand
There are moments in time, when certain variables align to create opportunistic market conditions with the potential for exciting returns.
It’s the unwavering belief of the Fund's investment manager (CHROME TEMPLE Investments Pty Ltd) that we are in the beginning stages of experiencing the perfect ‘value storm’ of exceptional rarity combined with exceptional demand. Even while there are 31 million vehicle investors and countless enthusiasts worldwide, the days of naturally aspirated, large capacity, manual transmission cars - the true drivers’ cars - are numbered.
With increasingly constrictive emissions regulations forcing electrification and hybridisation, we are now witnessing in real time the swan songs of OEM manufacturer’s flagship “ICE” (internal combustion engine) vehicles, as the last-of-their-kind, roll off the assembly lines in Maranello, Sant Agata, Stuttgart, Crewe and Woking. They are likely to be the last pure internal combustion engines legally allowed to be made for the road. The last V8/V10/V12 naturally aspirated engines to be manufactured. The last manual gearboxes to be produced. The last cars that we can experience the joy of analogue driving before they evolve into autonomous appliances.
An Extinction Level Event
We believe that we are in the midst of an automotive revolution – and the cars that the Fund is targeting are facing an extinction level event. Starting in 2025, production of many these last-of-the-line vehicles will cease, and emissions regulation and climate change will ensure they never return in the same form. These performance cars are already made in limited numbers generally, but now with production ceasing, we believe usage of many of these cars in the ensuing years will ensure finite supply of the Fund’s target cars. We can easily see a not-so-distant future where what started out as 250 cars produced globally, could end up being only 10 cars that remain in collectible condition.
The Fund's thesis is hedging that increasing scarcity will breed even greater desirability - cars with manual transmissions, the melodious hum of V8/V10/V12 engines, vehicles that embody an era that is rapidly fading into oblivion. Our investment thesis entails seizing these potential future automotive artworks today, while they are still accessible and before the market comprehends the extent of their rarity.
Democratising Automotive Investment
What's truly remarkable is that one doesn't need to be a car aficionado, possess extensive automotive knowledge or even need to be a multi-millionaire to comprehend and enjoy the potential of the Fund's investment thesis. The Mach 1 Fund offers a unique opportunity to invest in a future where passion has the potential to converge with financial gain—a realm where every car tells a story, and every investment fuels a legacy.
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Blog Article Disclaimer & References:
CHROME TEMPLE Investments Pty Ltd ACN 640 888 026 is a corporate authorised representative (number 001284056) of SILC Fiduciary Solutions Pty Ltd ACN 638 984 602 (AFS license number 522145), who is limited to general advice and deal by arranging services to wholesale clients relating to the CHROME TEMPLE Investments Mach 1 Fund only.
The use of this site is governed by a Terms of Use Disclaimer. By using this site you acknowledge that you have read the Terms of Use Disclaimer and that you accept and will be bound by the terms thereof. Review the full Disclaimer.
This is general information only and doesn’t take into account your personal objectives, financial situation, or needs. Investment is only available to wholesale clients. Prospective investors should carefully review the Mach 1 Fund’s information memorandum (IM) in full and seek professional advice prior to making any investment decision.
Past performance is not a reliable indicator of future performance and the expected returns of the Fund may not occur as expected or at all. An investor’s balance in the Fund may decrease as well as increase in value. Target returns are not guaranteed and total returns may be above or below the target range. The projections provided in this marketing material are based on Investment Manager's assumptions and analysis. These projections are forward-looking statements and are not guarantees of future performance. They are provided for informational purposes only. The actual results may differ significantly from the projections due to various risks and uncertainties, including but not limited to market conditions, economic factors, and changes in regulatory environments.
This blog article was published by CHROME TEMPLE Investments Pty Ltd and reflects the author's opinions on a particular subject matter. The views expressed do not necessarily reflect the performance of the Fund nor reflect the opinions of the Trustee or their affiliates.
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Continue Reading:
The Fund Intro 00: Genesis
The Fund Intro 01: Objective
The Fund Intro 03: Acquisition Strategy
The Fund Intro 04: Fund Structure
The Fund Intro 05: Governance & Oversight
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