Hagerty. “A Season of Change. ” John Mayhead. September 2022.

100% OF THE CTi FLEET ARE I.C.E. VEHICLES

SUPERCHARGED 13%

INTERNAL COMBUSTION ENGINE (ICE)

EV ~10% H yb rid ~10% M anual ~ 2 % Naturally Superc Aspirate harnged d ~1 ~1% %

NATURALLY ASPIRATED 63% MANUAL 25% Turbocharged / Other~80%

<5% OF 2020 PRODUCTION WAS I.C.E VEHICLES

A manual transmission adds a whole lot to the driving experience. More direct engagement between driver and machine goes a long way. That’s especially true when our beloved collector cars are a tonic for the more clinical, modern daily driver. 1,26

We've reported on the Mucielago's big stick-shift premium before. For manual V12 Lamborghinis, the Murci was the end of the line, as the stick dropped from the Big Lambo with the introduction of the 2012 Aventador. As Gallardos have started to make that transition from used exotic to modern collector car, the open-gate shifter is attracting more attention. Music video casting credits aside, Gallardos likely have enduring star power. Despite the Lambo's high costs, Hagerty reported that over 80 percent the insurance quotes they receive for Gallardos come from Millennial or Gen X enthusiasts.

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A generational shift need not be zero sum gain. While a new breed of collectors gaining wealth are buying the dream cars of their youth, others continue to buy '60s sports cars or prewar greats for the values they have long traded at. For the Fund this means that once a car reaches collectible status, there will always be demand for it, in spite of (and arguably because of) new collectors coming into the market who both increases interest and expand the definition of collectibles.

We’ve noted elsewhere that inflation could actually be driving high-net-worth collectors to put their money into significant cars as a hedge. Yes, the wealthy have the means and the motivation to snap up expensive classics as a hedge against inflation and/or under-