CHROME TEMPLE Investments Mach 1 Fund

Launched in May 2021, CHROME TEMPLE Investments Mach 1 Fund (the “Fund”) is Australia’s first dedicated passion asset car fund. The Fund is comprised of a collection of performance cars built on the collective expertise, infrastructure and network of dedicated automotive and financial professionals, with the sole purpose of generating financial returns.

We take a data-driven investment approach to develop investment strategies. By taking this professional approach, the Fund aims to deliver better returns than emotionally-led investment strategies, while making car returns more accessible to all types of investors, enthusiasts and collectors.

We believe that life is too short for boring investments, which is why we also provide investors with exclusive automotive and track events – so they can enjoy the financial and emotional benefits of investing in these automotive artworks.

Investment Objective

To manage a portfolio of carefully selected collection of performance cars built on the collective expertise, infrastructure and network of dedicated automotive and financial professionals, with the sole purpose of generating financial returns. 

Target Return¹

The Investment Manager seeks to deliver a total return to investors in the Fund of at least 8% per annum, net of fees and costs.

Minimum Investment Term 

A minimum investment term of:

• Alpha Round Units: 24 months
• Ordinary Units: 12 months

During the applicable Minimum Investment Term, withdrawals will not be permitted.

Summary of Key Benefits

The Fund offers Investors an opportunity to participate in asset backed “passion" investments which are not typically available to individual investors with the aim of achieving an attractive Target Return on the investment.

Financial Benefits^2,3,4,5,6,7

• +185% 10-year historical (gross) return for the asset class
• <10% Annual volatility
• +4x Exceeded stock market returns
• +2.5x Surpassed passion asset returns
• +29% Fund Net Returns Since Launch
• +13% Fund Net CAGR Since Launch

Key Features

• Proven track record with verified independent results
• Extensive network relationships to get the inside line on vehicles and allocations
• Strategies focussed on investments with increasing demand and finite supply
• Data-led approach to derive statistical models from market transactions
• Rigorous vehicle investment diligence process.
• Fully insured and tangible assets

Community

• Invitation to track days, including at Australia’s only private track.
• Collection viewing events
• Professional driver track ride-alongs
• Driving lessons from professional drivers
• Organised drive and dine days
• Tickets to sporting events
• Vetted community of car enthusiasts
• Exclusive octane fuelled events where professional drivers highlight Fund vehicle features and performance

To manage a portfolio of carefully selected performance cars built on the collective expertise, infrastructure and network of dedicated automotive and financial professionals, with the sole purpose of generating financial returns. 

Investment Philosophy

We invest in last-of-the-line vehicles for one simple reason, people want what they can’t have. While performance cars are made in limited numbers generally, that’s not the only thing driving finite supply of the Fund’s target cars. There is something even more revelatory of what’s to come: increasingly constrictive emissions regulations.

We believe we are in the midst of an extinction level event in the automotive industry as we witness last of their line vehicles roll off the assembly lines in Maranello, Sant Agata, Stuttgart, Crewe, Woking and more – The last pure internal combustion engines legally allowed to be made. 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.

The Fund has an opportunity to acquire these future artworks today, before the market realises how rare and scarce they are destined to become.

Investment Strategy 

CTi believes that passion and financial gain can co-exist when executed well. To achieve the Fund’s investment objectives, the, the Fund acquires and owns performance cars that possess more than one sign of a future classic in the making:

• Low global production quantities
• Low mileage for age
• Exemplary condition
• High specification desirability
• Analogue driving inputs
• Strong provenance records
• Global appeal and relevance
• Exhibit pricing trends of leading statistical indicators

Each vehicle must also pass a rigorous due diligence and inspection process. Only 6% of the vehicles inspected for Fund investment have been acquired by the Fund.

Investment Process 

CTi understand that to achieve the anticipated returns for Investors there needs to be robust governance practices, investment processes and infrastructure which is fully integrated to provide a framework where both risk and reward are rigorously managed.

The governance process has been designed to ensure clear delineation of responsibilities between the Investment Committee, CTi investment team and the various parties, including CTs, who provide the related services including acquisition, sales and market monitoring roles.

The key procedures, processes and controls adopted have been tailored to the lifecycle of an investment selected by CTi for the Fund, summarised as follows:

• vehicle acquisition
• ongoing maintenance (preserve) and monitoring (track)
• vehicle sales

Within each phase of an investment’s life cycle, an asset must pass through four key stages: identification, assessment, validation/preparation and finally transaction. Each stage is designed to ensure that the asset meets/continues to meet the Fund’s objectives and guidelines, protocol is followed, proper authorisation is obtained, and that all the necessary checks, reviews and market testing is conducted.

The Fund is not expected to be highly liquid or liquid in the short term. Liquidity is ordinarily provided by the realisation of Fund assets.

Where Ordinary Unit holders seek to withdraw between 12-24 months from unit Issue Date, a 5% withdrawal fee calculated on the withdrawal amount will be payable.

Otherwise, subject to the applicable Minimum Investment Term and available liquidity, Investors may with a six (6) months’ minimum notice period submit a Withdrawal Request to redeem some or all of their investment. Reinvested distributions may be withdrawn at the same time as the Units that relate to those distributions. The Trustee will process withdrawals on the Withdrawal Processing Date.

Where there are insufficient funds to satisfy all Withdrawal Requests received prior to each Withdrawal Processing Date, Withdrawal Requests will be satisfied on a pro-rata basis. Investors will then automatically participate in each subsequent Withdrawal Processing Date until the amount specified in their Withdrawal Request has been fully redeemed.

This listing in its entirety is published by Chrome Temple Investment Pty Ltd ACN 640 888 026 (Investment Manager), a corporate authorised representative (No. 001284056) of SILC Fiduciary Solutions Pty Ltd ACN 638 984 602 (AFSL 522145) (AFSL Holder). The authority of the Investment Manager is limited to general advice and deal by arranging services to wholesale clients relating to the Chrome Temple Mach 1 Fund (Fund) only. Specialised Investment and Lending Corporation Pty Ltd ACN 149 520 918 (AFSL 407100) (Trustee) is the issuer of the Fund’s information memorandums and supplementary disclosure documents.

This listing contains general information only and is not intended to provide any person with financial advice or offer of any kind. Prospective investors should carefully review the Fund’s information memorandum and supplementary disclosure documents (IM) in full and seek professional advice prior to making any investment decision. No reliance may be placed on this listing for any purpose. Information relating to the Fund contained in this listing has been prepared without taking into account the objectives, circumstances, financial situation or needs of any person, and may differ to information contained in the IM. This listing may also contain statements regarding our intent, belief or current expectations with respect to market conditions. Past performance and/or forward-looking statements are not a reliable indicator of future performance.

Neither the Investment Manager, Trustee, AFSL Holder nor its affiliates warrant or guarantee, whether expressly or implicitly, the accuracy, validity, timeliness, or completeness of any information or data (whether or not prepared by us) within this listing for any purpose or use or that the information will be free from error. Further, the Investment Manager, Trustee, AFSL Holder and its affiliates expressly disclaim any responsibility and shall not be liable for any loss, damage, claim, liability, cost or expense however arising and whether in tort (including negligence), contract, equity or otherwise in connection with or from the use of the information in this listing.

¹ Target returns are not guaranteed and total returns may be above or below the target range. ² Past performance is not indicative 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. ³ Historic Automobile Group International (“HAGI”) data through 31 December 2022. Returns based on vehicle valuations excluding any related costs (e.g. fees to acquire/sell, maintenance, storage costs). ⁴ Credit Suisse. “Collectibles Amid Heightened Uncertainty Around Inflation.” June 2022. ⁵As compared to S&P/ASX 200 and FTSE 100 (Wall Street Journal), HAGI and World Gold Council. Market data through 31 December 2022. ⁶ Knight Frank, “The Wealth Report," August 2023 using an average of the 10-year returns of a basket of passion assets. ⁷ Calculated as the percentage difference in unit price at points in time, including at launch (May 2021) compared to 30 June 2023 unit price. Returns are net of all expenses and fees. Net CAGR takes into account timing of returns since launch (May 2021) through 30 June 2023.