IGA Automobile, a new closed-end partnership fund, is planning on investing $150m into “a collection of 20 to 40 trophy marque vehicles with distinguished race or ownership histories” which it claims will appreciate some 15 percent over the next seven years, according to the Detroit News. Though collective buying of super-exotic cars is not new in itself, IGA Automobile fund Director Lancaster claims
This is the first classic-car fund that’s purely for financial returns, rather than passion
The fund, which is advised by Pink Floyd drummer and car nut Nick Mason, has identified several “potential acquisition targets” including the Ferrari 250 GTO, Aston Martin DB4 Zagato, Ford GT40, McLaren F1, Shelby Daytona Coupe and Porsche 917. And, since investors in the fund will be shelling out a minimum of half a million dollars to buy cars that they won’t even be able to keep in their own garage, the investment had better have a chance of making some money. And the fund’s managers think they can make that pitch, as
The Hagerty’s Cars That Matter “Blue Chip” Index, based on the values of the 25 most collectable postwar vehicles, has increased 67 percent from September 2006 to the end of 2010… The Historic Automobile Group International (HAGI) Top 50 index of exceptional classic-car prices was up 6.6 percent in 2010, lower than its average annual growth of more than 12 percent from 2003-08.
That’s better than plenty of investments did over a similar time period… but luxury-goods speculation still has a shaky track record. Besides, doesn’t it seem just a little bit wrong to treat these epic classics like a bond certificate, keeping them stashed away in a vault somewhere? Here’s hoping there’s room in the business plan for some kind of museum.