

lex@CHROMETEMPLE.com
+614 04 84 64 24
AFSL number 407100
ACN 149 520 918
investors@silcgroup.com.au
CHROME TEMPLE Investments Pty Ltd ACN 640 888 026 (Investment Manager), a corporate authorised representative (number 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 Investments Mach 1 Fund (Fund) only. Specialised Investment and Lending Corporation Ltd ACN 149 520 918 (AFSL 407100) (Trustee) is the issuer of the information memorandum and supplementary supplementary information memorandums. This document contains general information only and is not intended to provide any person with financial advice or offer of any kind. Prospective investors should carefully consider the contents in the information memorandum and supplementary information memorandums in full and seek professional advice prior to making any decision regarding an investment in the Fund. No reliance may be placed on this document for any purpose nor used for the purpose of making a decision about a financial product or transaction. Information relating to the Fund contained in this document 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 information memoranda. This document may also contain forward looking statements regarding our intent, belief or current expectations with respect to market conditions. Past performance and/or forwardlooking statements are not a reliable indicator of future performance. Except as required by law and only to the extent so required, neither the Investment Manager, Trustee, AFSL Holder nor its affiliates warrant or guarantee, whether expressly or implicitly, the accuracy, validity, timeliness, merchantability or completeness of any information or data (whether prepared by us or by any
third party) within this document for any particular purpose or use or that the information or data will be free from error. Further, the Investment Manager, Trustee and its affiliates expressly disclaim any responsibility and shall not be liable for any loss, damage, claim, liability, proceeding, cost or expense arising directly or indirectly and whether in tort (including negligence), contract, equity or otherwise out of or in connection with or from the use of the information in this document.
IMPORTANT: 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. All statements that indicate expressly or by implication an expectation of investment returns are based on reasonable assumptions and commercial judgement and no representation is made or assurance given that such statements, views, projections or forecasts are correct or that the expected returns will arise or that investment balances in the Fund may not decrease. You must read the Disclaimer and the contents of the Information Memorandum in full to understand the risks involved in an investment in the CTi Fund.
1 Past performance is not indicative of future performance.
2 Calculated as the percentage difference in unit price as at 30 June 2023 compared to 30 June 2022 (YOY) and at launch (May 2021) net of fees (pro forma for performance fees as needed). Net compounded annual growth rate (net CAGR) takes into account timing of returns.
3 Investopedia.com “Advantages and Disadvantages of Real Assets.”
4 Credit Suisse. “Collectibles Amid Heightened Uncertainty Around Inflation.” June 2022.
5 Jaguar, Mercedes-Benz, Lamborghini websites.
6 Car Advice. “End of Australian-made cars” February 2014.
7 Car Advice. “Holden: End of the road today, after 72 years” December 2020.
8 Car Advice. “HSV GTSR W1 Maloo sells for $1.05 million” January 2021.
9 Car Advice. “Holden: Commodore V8 prices soar” February 2021.
10 Data from Yahoo finance (S&P/ASX 200), Wall Street Journal (FTSE 100), HAGI and World Gold Council. Market. Data through 2023 06 30.
11 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).
12 Credit Suisse. “Collectibles: An integral part of wealth.” October 2020
13 Knight Frank. “The Wealth Report 2023.”
14 For the S&P/ASX 200, FTSE100, NASDAQ and Gold (in AUD) closing indices prices were rebased to 100. For HAGI index, prices were rebased to 100 based on the change in the indices values every quarter. Mach 1 unit price was rebased to 100 based, pro forma for performance fees.
15 Target returns (net of all fees and expenses) are not a promise, or a forecast and actual returns may be above or below target range. Past performance is not a reliable indicator of future performance. All statements that indicate expressly or by implication an expectation of investment returns are based on reasonable assumptions and commercial judgement and no representation is made or assurance given that such statements, views, projections or forecasts are correct or that the expected returns will arise or that investment balances in the Fund may not decrease.
16 Returns are gross vehicle returns and do not represent annual returns, unless specifically noted as a CAGR.
CHROMETEMPLEInvestmentsMach1 Fund ("Fund") is Australia's first and most experienced alternative passion asset fund dedicated to investing in exceptional vehicles where future capital appreciation is most likely to exist.
SincelaunchinginMay2021,theFund has delivered investors +29% net returns.
As the Fund's appointed investment manager, "CTi" (CHROME TEMPLE Investments) is responsible for curating a collection of vehicles for the Fund that is built on the collective expertise, infrastructure and network of dedicated automotive and financial professionals,withthesolepurposeof generatingfinancialreturns.
TheFund'strackrecordisatestament to the expertise and years spent validating this asset class - proving out the potential yields that a professional approach can acheive in an industry that is dominated by amateurpassioninvestors.
Mandated global transportation shifts and the next automotive revolution (already underway) are driving the potential for this investment class to generate strong, consistent returns and wealth creation - delivered through a data led approach - which appeals to enthusiasts and nonenthusiastsalike.
We are at the precipice of a new automotive era - that of electric (EV) and autonomous (AV) vehicles.
It is now clear that the shift to allelectric vehicles (and eventually autonomous vehicles) is not a fad. It is a structural, mandated change that is spearheaded by European Emissions legislation and is being enforced at expandingrates.
Marques from Jaguar / Land Rover to Mercedes-Benz to Lamborghini, have all announced plans with specific deadlines(allpre-2030)bywhichthey willonlyproduceelectricvehicles.
The end of pure internal combustion enginesiswellandtrulyuponus.And with each all-electric announcement, we embark further into a new automotiverevolution.
Importantly for the Fund, this means that we are witnessing last of the line vehicles. The last V8 - V12 naturally aspirated (NA) engines to be manufactured across all marques. The last manual gearboxes to be produced. The last cars that we can experience thejoyofanaloguedrivingbeforethey evolveintoautonomousappliances.
The Mach 1 Fund is an opportunity to acquire scarce real world assets that will gradually turn to being appreciated as works of art. By understanding what lies ahead, we are in a unique position to amass a collection ofexceptionalvehiclestoday,tocreate tomorrow’snesteggs.
As more and more marques commence their transitiontoelectricdrive, weseetheopportunityas securing last of the line cars, which represent everythingthefutureisn’t, beforethemarketrealises howrareandscarcethese cars are destined to become.
WE SEE THE OPPORTUNITY...
BEFORE THE MARKET REALISES HOW RARE AND DESIRABLE THESE CARS ARE DESTINED TO BECOME.
Thereisyettobeamass"awakening" to the implications that today's technological advancements and regulations have on the future supply anddemandmechanicsofthesetypes ofvehicles.
Tomorrow's classics remain readily available. Many collectors and owners are not yet pricing or holding these vehicles with these considerations in mind.
We have an opportunity to secure
these vehicles today, before this dynamic begins to be reflected in marketpricingandavailability.
By taking a professional, unemotional and data led approach to what is largely a hobby investment class, we findourselvessupremelypositionedto capitaliseonthisopportunity.
Whether you are a collector, enthusiast or are just looking for financial returns, the Fund is your chancetojointhemovement.
A real world example of what's to come:
Since 2014, experts had speculated that Holden would cease production in Australia. Even when in 2017 Holden closed its local factories and reported its weakestsalesinmorethan60years,the marketremainedlargelyunmoved.
It wasn't until February 2020 when General Motors announced it was pulling out of Holden altogether, that the Australian market awoke to the realisation that Holden cars would no longer be available, and the market reacted abruptly. The nostalgia that swept the market once this awakening occurredwasfeltnationwide.
You'lllikelyrecalltheHSVGTSRW1Maloo generating a record breaking $1.05mm sale price. We also saw an HSV GTS-R sedan being listed for double its pricewhen-new, andCTi'sowncasestudyHSV W1sellingfora33%gaininsevenweeks.
Although the 'awakening' didn't occur until after the proverbial factory padlock closed at Holden, once it did, the impact was immediate, explosive and ongoing. WelikenthistowhatliesaheadwithCTi's targetvehicles.
Just as we were preparing to launch the Fund, Holden delivered a living example of our thesis.
- LEX PEDERSEN
WE WOULD LIKE TO INTRODUCE YOU TO THE J-CURVE, OUR THESIS NORTH STAR OF SORTS.
Most of us are aware of the immediate depreciationmostcarsexperiencefrom their original purchase price. The more commoditised the vehicle, the more likely it is that it will continue on that downwardtrajectory.
Desirable vehicles, however, follow a different trajectory. After “bottoming out” they begin to appreciate in value. And vehicles of distinction continue to appreciateonajourneytotheiroriginal purchasepriceandbeyond.
CTi uses the J-Curve to help visualise how we think about target Fund cars.
The Fund is focused on vehicles of distinction. These are the vehicles that havethepotentialtobecometomorrow's futureclassics.
CTi targets vehicles that have already started on their appreciation trajectory and are at or approaching their original purchase price and that we believe will continue up that hockey stick handle in what we believe will be an ever steepeningtrajectory.
We learn from the past as to what characteristics are key indicators of a vehicle's trajectory towards being a future classic.
Analogue driving inputs and minimal interfering digital driving aides become ever more desirable
Fund vehicles are often visually and audibly raucous like this Lamborghini Aventador. Last of the NA V12 lineage.
Large capacity, naturally aspirated engines are at the precipice of extinction, never to be replicated.
The DBS V12 Manual Coupe is as striking to the ear and other senses as it is the eye. Arguably the most beautiful Aston ever produced. This marque, like most, have officially declared an end to manual transmissions and naturally aspirated engines.
Jaguar F Type Project 7 exemplifies scarcity, 250 were produced globally, with only 10 of the special supercharged V8's delivered to Australia. Jaguar will be all-electric by 2025.
What we look for
A STRONG INVESTMENT
Vehicles are a "passion" asset with generally low volatility and low market-correlation. They have outperformed stock marketsoverthesameperiod.
Vehicles can offer a natural hedge against inflation, preserving their value over long periods of time. They don't go bankrupt, andtheirpriceswon’tgotozero.
Withthevehiclesthat havebecometoday’s classicsgenerating +185%returnsover thepastdecade, the lowvolatility,anduncorrelatedreturns, thisassetclassisappealingtoalltypesof investorsseeking to diversitytheirportfolio.
"One of the best risk/returns profile amongst passion assets"
CLASSIC CARS HAVE GENERATED 185% RETURNS IN THE LAST DECADE, OUTPERFORMING STOCK MARKETS & GOLD OVER THAT SAMEPERIOD.
The financial merits of vehicle investment is attractive to more than just car enthusiasts and collectors. Vehicles represent an effective way to diversify an investment portfolio with an asset class that has low volatility, is uncorrelated with the market and has generallydemonstratedstrongconsistentreturns.
Internal analysis indicates that it's a goodtimetoinvestinthetheMach1
positive returns (and satisfying its minimum target return rate) even duringtryingmarkettimes.
But, we believe the true potency of the Fund lies in its potential to not only preservewealthovertheshort-term,but also generate substantial returns over a longer time horizon as Fund cars become increasingly scarcer. And this is why the Mach 1 Fund prioritises performanceovershort-termgains.
WebelievetheFund'ssuccessisnotonly sustainable, but has the potential to be turbocharged with even more top-tier vehicleacquisitions.
FEATURE | FUND TARGETS
CHROME TEMPLE INVESTMENTS MACH 1 FUND, OUR FLAGSHIP FUND, IS THE MAIN INVESTMENT VEHICLE WE OFFER AT THIS TIME. THE FUND IS AVAILABLE TO WHOLESALE INVESTORS INCLUDING SMSF'S. CTI HAS PLANS TO OFFER INDIVIDUALLY MANAGED PORTFOLIOS IN THE FUTURE.
80% 20%
$100 million target fund size. Domestic and international opportunities exist.
The fund targets at least 8% P.A. Targeted Fund Returns. Fund targeted returns are net of fees and costs and are based on assumptions as to future economic performanceoftheunderlyingassetsprices thatmaynotberealisedandprojectionsof various financial variables which may affect futurereturns.
With 8 or more cylinders, analogue driving inputs and minimal electronic aid or sense dulling inhibitor in sight, these visually and audibly obnoxious masterpieces are everything the future isn’t!
MAX FUND ALLOCATION
75%
TARGET FUND ALLOCATION
40% of capital
40% of vehicles
MAX FUND ALLOCATION
80%
TARGET FUND ALLOCATION
40% of capital
20% of vehicles
Scarcity is the currency for these low number, hard to find gems. Rarely do these vehicles hit the open market and having a lens on the global market is a must.
From the past we learn of the characteristics that destine a vehicle for collecting greatness. Watching domestic and international data allows us to remain ahead of the market.
15,16 CTiMACH1FUND
TARGET AVERAGE HOLD PERIOD 0-1 years
Through our expansive automotive network, CTi has unrivalled access to “pre-market” acquisition opportunities to allow short hold, high yield trades for in and out of network customers, to bolster ongoing Fund returns.
....
TheFunddeliversreturnsfrom three key strategies - buying well, holding well & selling well.
Our efforts are cast wide and far across open markets, private networks & wholesale channels,andextendsbeyond Australianshores.
Whenwecollectasindividuals,wetendto be led by what we want to see in our garage. The Fund takes an unemotional, professional approach to investing in vehicles. The sole focus of the Fund is to generatereturnsforourinvestors.
In simple terms, we believe that the Fund can generate stronger returns than personal collections, because we take that professional and unemotional approach to buying, holding and selling cars. After all, our motto is "Results Before Romance."
WE LEVERAGE REAL-TIME DATA ... TO STAY AHEAD OF DEMAND & PRICING TRENDS.
Our automotive experts are supported by our dedicated analysts who use market data to identify whichbehavioursandtrendsarelead indicators of a future classic in the makingandifmarketconditionsand sentimentarefavourable.
As we continue to expand our proprietary database, we believe there is an opportunity to mine data in an increasingly proliferated and disparate data source landscape to maximisereturns.
THIS FUND IS THE CULMINATION OF YEARS OF VALIDATION, RESEARCH AND TESTING.
We reverse engineered the Fund's infrastructure to ensure returns are maximised and not sunk in large operatingcosts.
The storage facility is fully insured, dust-controlled, and highly secure with back-to-base 24/7 surveillance, steel exit doors, and anti-ram barriers. Fund cars are further additionally insured for their most recentvaluation.
Our on-site team of automotive professionals ensure the Fund’s investments are properly cared for, maintained and protected to maximise their value and preserve theirrespectiveprovenance.
We have built our infrastructure and governancewithSelfManagedSuper Fund(SMSF)complianceinmind.
Weprescribetoameticulousvetting process across verification, scarcity, provenance and feature facets to drivecertaintyaroundfuturedemand andvalue.
Quarterly independent valuations provide visibility, transparency and validationoftheFund’sperformance.
Quarterly independent valuations provide ... validation of the Fund’s performance.
AconsciousallocationofFUMand attention will be spent on expanding the Fund's Mk-IV positiontoprovideshort-termwins andliquidityfortheFund.
Led by an unemotional approach, Fund vehicles are always in a "forsale" state so we can quickly capitalise on open market trends andenjoyshort-termyields.
Whilst investors are not allowed "wheel time" behind Fund cars, thereareotherwaystoexperience them, and other cars (which can be driven). A community of likemindedenthusiastsforoctane fuelled events is an important cultural aspect of this Fund. Our 2023calendarislookingamazing.
Fuelled by an avid passion for all things loud and fast and inspired by continuous double-digit value appreciation from his personal car collection, Lex sought to invest in a car fund. Discovering there were no viable options, Lex extracted himself from his other business endeavours to focus on launching Australia's first ever car fund. CHROME TEMPLE Investments is the culmination of years of validating the professional and unemotional approach to investing in cars. An accomplished entrepreneur, Lex has founded and grown several start-ups and was a pioneer of Australian ecommerce,havingco-founded,globalisedandlistedSurfStitch.
With 25 years of investment experience, Charlie is considered one of Australia’s best connected and most respected Investment Bankers. Charlie's illustrious career includes most recently serving as the Managing Director and Head of Fundamental Active Equities for Blackrock in Australia. He previously held the position of Deputy Head of Equities at Perpetual for over 14 years. He brings to the team, not only a wealth of Asset and Portfolio Management experience, but a vital professional standard that dictates every facet on how werunandmanagethefund.
Ryan began his career as a Mechanical Engineer before becoming a Patent Attorney. He spent over 20 years with leading patent attorney firm: Spruson & Ferguson, and was one of the group's Principals that transformed it from a privately held unit trust to the ASX listed company IPH Ltd (market cap AU$1B+). Throughout this time he also drove, rallied, raced, restored, modified and collected classic cars, especially air cooled Porsche 911s. He brings to CTi both passion and experience in: classic car trading; provenance research; and a knack for picking emerging vehicletrends.
Collectively, our team has over 100+ years of automotive experience, 60+yearsoffinancialandportfoliomanagementexperience,20+years ofriskmanagementexperienceand20+yearsoflegalexperience
NICHOLAS ADAMO // DIRECTOR
Before becoming the owner of Australia’s only private track, Nick specialised in data intelligence, strategy and technology services using machine learning & AI and ran someofAsiaPacific'slargestconsultingfirms.
SIMON FRANKLIN // DIRECTOR
Simonisariskmanagementspecialist.Heservedas DirectorandPracticeLeaderatDeloitteAustralia.Hehas advised,structured,setupandmanageddomesticand internationalinvestmentsfunds.
LUKE O'NEILL // SPECIAL ADVISOR
Luke’s automotive event management company runs the invitation-only Burrows Drive Days. Ron Dennis personally selected Luke as Australia's Brand Ambassador for McLaren Automotive.
FUND NAME CTi Mach 1 Fund (Fund)
TRUSTEE Specialised Investment & Lending Corporation Ltd
ADMINISTRATOR SILC Funds Administration Pty Ltd
INVESTMENT MANAGER CHROME TEMPLE Investments (CTi)
FUND TYPE Open Ended MIS (unregistered Wholesale Fund) offered to wholesale investors only*
INVESTMENT STRATEGY
Identify and invest in vehicles of the present and past to generate investor returns through the capital appreciation of those vehicles. Through a diversified investment we believe we can generate long term returns in excess of 8% p.a. (net of fees and direct costs)
INVESTMENT GUIDELINE
The investment guidelines set clear parameters and requirements in terms of which type of cars can be bought based on meeting that criteria
ASSET CLASS Asset backed passion investment
PORTFOLIO ASSET ALLOCATION TARGETS
The Portfolio will be managed in line with the strategic asset allocation targets set by the Investment Committee and reviewed and modified as required from time to time. The portfolio manager has divided the cars into four main categories and set maximum target ranges to ensure diversity across the portfolio at both car and category level including hold lengths
PORTFOLIO / RESTRICTIONS Max. single exposure to vehicle = 15%
MINIMUM INITIAL INVESTMENT
Alpha Round Investors: $100k (fully subscribed) Ordinary Investors: $100k
Additional investments: Increments of $100k
TARGET INITIAL CAPITAL RAISE Initial Offer = $15-$20 M 1-2 Years from Initial Offer = 100M+
TARGET VEHICLE HOLDING PERIOD 3-5 years
Commitment Structure: 25% Commitment Amount upfront, Trustee will make Capital Call on Uncalled Capital as investment opportunities arise within 12 months from initial close date. Quarterly applications: 31 March/30 June/30 Sept/31 December (or any other date determined by the Trustee)
Alpha Round Investors: No redemptions within initial 24 months. Thereafter withdrawal request considered on 6 monthly basis with no penalty, subject to 6-month notice period.
Ordinary Investors: No redemptions within initial 12 month. Withdrawal request within initial 12-24 months considered on a 6 monthly basis with a 5% penalty, subject to a 6-month notice period. Thereafter withdrawal request considered on a 6 monthly basis with no penalty, subject to 6-month notice period.
Management Fee: 2.0% p.a. on funds under management
Performance Fee: 20.0% p.a. of outperformance net of fees, subject to a high-water mark
Other fees: acquisition costs, disposal costs, storage, insurance, maintenance, independent valuations, transportation