FY23 Q3 Investor Report

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DISCLAIMER

CHROME TEMPLE Investments Pty Ltd ACN 640 888 026 (Investment Manager), a corporate authorised representative(number001284056)of SILCFiduciarySolutionsPtyLtdACN 638 984 602 (AFS licence number 522145) (AFSL Holder). The authority oftheInvestmentManagerislimited to general advice and deal by arranging services to wholesale clients relating to the CHROME TEMPLE Investments Mach 1 Fund (Fund) only. Specialised Investment andLendingCorporationLtdACN149 520918(AFSlicencenumber407100) is the trustee (Trustee) of the Fund and the issuer of the information memorandum and supplementary information memorandums. This document contains general informationonlyandisnotintended to provide any person with financial advice or offer of any kind. Prospectiveinvestorsshouldcarefully consider the contents in the information memorandum and supplementary information memorandums in full and seek professional advice prior to making anydecisionregardinganinvestment in the Fund. No reliance may be placed on this document for any purposenorusedforthepurposeof making a decision about a financial product or transaction. Information relatingtotheFundcontainedinthis document has been prepared without taking into account the objectives, circumstances, financial situationorneedsofanyperson,and maydiffertoinformationcontainedin 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 forward lookingstatementsarenotareliable indicator of future performance. Exceptasrequiredbylawandonlyto 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 anythirdparty)withinthisdocument

TRUSTEE

Specialised Investment and Lending Corporation Ltd

AFSL number 407100

ACN 149 520 918

investors@silcgroup.com

foranyparticularpurposeoruseorthat the information or data will be from error.Further,theInvestmentManager, Trustee and its affiliates expressly disclaimanyresponsibilityandshallnot be liable for any loss, damage, claim, liability, proceeding, cost or expense arisingdirectlyorindirectlyandwhether in tort (including negligence), contract, equity or otherwise out of or in connectionwithorfromtheuseofthe informationinthisdocument.

REFERENCES

IMPORTANT: Past performance is not indicativeoffutureperformanceandthe expected returns of the Fund may not occurasexpectedoratall.Aninvestor's balance in the Fund may decrease as wellasincreaseinvalue.Allstatements thatindicateexpresslyorbyimplication anexpectationofinvestmentreturnsare 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 investmentintheCTiFund.

1 Pastperformanceisnotindicativeof futureperformance.

2 Calculated as the percentage differenceinunitpriceasat31March2023 compared to 31 March 2022 (YOY), 31 December 2022 (QOQ), and at launch (May 2021) net of fees (pro forma for performancefeesasneeded). NetCAGR takesintoaccounttimingofreturns.

3 Hagerty.“Top-tiercarsareflourishing. Aretherestfloundering?.”April2023.

4 Investopedia.com “Advantages and DisadvantagesofRealAssets.”&"Money.

5 CreditSuisse.“Collectibles:Anintegral partofwealth.”October2020.

6Reuters.“Ferrarifever?Classiccarsroar intoinvestmentfunds.”April2023.

7 Comparativeindicesresultsarebefore fees. The S&P/ASX 200, FTSE100, NASDAQ, Gold (in AUD), Bitcoin (BTCAUD), S&P 500, HAGI and Hagerty indicesarecalculatedastheir31March 2023 reported prices vs 31 March 2022 prices (YoY) and 31 December 2022 (QoQ). Stock market indices obtained fromYahooFinanceandWallStreet Journal.GoldobtainedfromWorldGold Council. HAGI and Hagerty obtained fromtheirrespectivewebsites.

8 Hagerty Website. “How the Hagerty MarketRatingworks“

9 Historic Automobile Group International.TopIndex.

10 Grossvehiclereturnscomparetheir31 March2023valuationtotheiracquisition (Launch),31December2022(QOQ)and 31March2022(YOY)values.Ifavehicle was purchased between the starting period and 31 March 2023, then the acquisition price was used as the starting value. If the vehicle was sold before31March2023andacquiredafter the starting period, then its sale price was used as its ending value. Gross vehicle returns exclude deposits. Weightingisbasedongrossvalue.

11 Hagerty. “Records fell at the 2023 AmeliaIslandauctions.”March2023

12 Prices indices are before fees and wererebasedto100.Mach1priceswere rebased to 100, and are based on the relevantunitissuancepriceandarenet offees,includingperformancefees.

13 Hagerty.“5collectiblevehicleslosing steamin2023.”April2023.

14 Hagerty.“5classicsheatingupinthe 2023PriceGuide.”April2023.

15 Hagerty. “These Ferrari and Lamborghinis sales stayed the course.” February2023.

16 Hagerty.“Whichautomotivebrandis mostvaluable?”November2022.

17 This is a potential investment opportunity and there is no guarantee thattheFundwillproceedwithmaking theinvestment.

MARKET REVIEW

A review of current trends, and the potential outlook and impact of the industry.

THIS QUARTER'S PODIUM

The Fund's Special Advisor Luke O'Neill might call himself a reluctant collector, but his skills say otherwise.

HOW A CAR FUND BECAME THE ULTIMATE EQUALISER

BY: LEX PEDERSEN

On this, the two-year anniversary of theFund,itgivesmegreatpleasureto report that our investment strategy has been paying off in a volatile market. Delivering a 27% net return and a +14% net compounded annual growth rate (CAGR) since inception (May '21) through March 2023, our car fundhasbeenfiringonallcylinders. I'mevermoreconfidentintheFund's

results.Thelatestappraisalswereconductedbyanentirelydifferent,butstill independent, appraisal company. This is in line with our commitment to presentingverifiedresults.Theirvaluationsvalidatedthepreviousappraisals andreaffirmedthatoureffortstodrive this Fund full throttle by investing in bestspecimencarsisworking.

In the early days of the Fund, we focussed on last-of-the-line mid-tier vehicles - not million-dollar cars, but still rare and elusive - with great success. Many of these vehicles generateddoubledigitgainsjustfrom

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buying well. Post-acquisition, these cars have demonstrated an ability to preserve their intrinsic value and generate consistent, modest returns on a quarterly basis. And according to our analysis, their sharpest growth trajectoryisstilltocome.

More recently, our focus has inched towards top-tier acquisitions, vehicles like the Fund's Lamborghini Ultimae, Ferrari 812 Superfast and Ferrari F12 Berlinettas - cars with low kilometres, abroaderaudienceappeal,andwitha corresponding higher price point. Fundvehiclesatthispointerendhave also generated immediate sizeable returns from buying well and show significant future returns potential. But they have proven even more resilient to market volatility, by demonstrating the ability to up-hold

But the true potency of the Fund lies in its potential to not only preserve wealth over the short-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.

To ramp up our investments and make big moves, we are setting our sights on the crème de la crème of automotive art. While it may require significanteffort,therearecompelling reasons to focus our fleet on the toptier segment - these cars tend to be moreresistanttomarketfluctuations.

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ective about the quality and models they will invest in. From experience, numbered series cars with international appeal are exactly what discerning buyers are looking for. Theyareahigherprice-pointthanthe average car in our current fleet, but havesignificantshort,immediate,and long-termreturnspotential.

Ifyou'repartoftheCTibanterchannel, you know the opportunities for these types of cars keep coming. We were recentlyofferedaFerrariF40,McLaren SLR and a brand-new track-only Ford GT (1 of 20 in the world) - all vehicles we'll consider for the Fund over time as we push more and more into the top-tierautomotiveartsegment.

But don't let the fact that the Fund didn't acquire these particular cars bring you down. The important thing to focus on here is that we're in the driver'sseat. Opportunitycomestous

and comes to us first. And this means there are actionable opportunities for us to turbo charge the Fund's growth potential. But let's not forget that one of the most exciting prospects for the Fund's future is its appeal to two distinct and significant communities: those seeking reliable and robust returns,andthosewhohaveapassion forcarsandcommunity.

RESULTS FOCUSSED

Investingincarsisn'tjustforrev-heads anymore. More of the public is noticing that not all cars are created equal,somecarshavethepotentialfor generating significant returns. Because car investments have a proven trackrecordofperformancethat'snot tied to the market and is assetbacked, some people who prioritise resultsseecarsasapromisingoption.

1,4,5

first, but we know that some people

joining rank legitimises a fund of this nature. And we're happy that our opportunityfirst,havethepotentialto

CAR FOCUSSED

The Mach 1 Fund is more than just an investment opportunity, it's a community of car enthusiasts who are hungry for a platform to indulge their passion. This group of investors sees theFundasawaytofueltheirlovefor carswithtangiblebenefitslikeevents, track days, and lively banter, all while making their hobby economically viable.

From family offices to private collectors to established dealerships, peopleareconstantlyreachingoutto

me for ways to get involved with the Mach 1 Fund because they recognise our efforts to legitimise a hobby as a soundinvestmentspace.

Thefeedbackwe'regettingisthatour dedication to promoting automotive art makes us the go-to for serious playersinthemarket,andit'swhythe rightopportunitieslandonourdesk.

THE GREAT EQUALISER

For some, the Mach 1 Fund brings together people from all walks of life, united by a passion for cars. The communityisdiverse,withindividuals of all political views, religions, ages, and socio-economic backgrounds, all brought together by their passion for automobiles.

And for others, the community is about a group of individuals who are interested in making returns with a newandground-breakingfund.

When you really think about it, the Fund'scarsaretheultimateequalizer. Whether you've joined for the cars or thereturns(orboth),it'sbroughtusall together in a unique and profound way.

I'm immensely proud of what we've accomplished. Our community is one ofakind,andourdiversityputsusina prime position to seize some truly incredible opportunities. If, like me, you're excited that you're part of an industry-changing fund, get ready for anexhilaratingride.

FEATURE | PORTFOLIO IN REVIEW

Q3 FY23

Amidst a volatile market, we remain optimistic about our investment strategy and confident in our ability to attain sustainedsuccess.Through31March2023,we'vegenerated 27% net returns since inception, representing a 14% net CAGR.OurYOYresults(+8%,netoffees)continuetoexceed thoseofthebroadermarket.

For the quarter, our net results (+1.4%) closely mirrored those observed in conventional markets. But the nature of thisassetclasslendsitselftolongtermappreciationandits why our holding strategy is such an important feature for the Fund. Since the Mach 1 Fund prioritises performance over short-term gains, it is difficult to make meaningful comparisonstoconventionalmarketsortofocusonquarter overquarterresults.But,wereportonthesefigures to give

VEHICLE PERFORMANCE

CTi valuations are based on the mid-point of the third-party assessment valuation range.

Note: The Fund's results are reported net of fees while the comparative indices are listed on a gross basis. They do not adjust for fees, holding or custodian costs.

investors full transparency on your investment.However,wenotethatshortterm results and market comparisons don'tcarrymuchrelativeweight.

We also provide comparisons to the Hagerty and HAGI car indices. We have noted the disparities between the Fund andtheHAGIandHagertyindicesbefore. These indices don't factor in holding and custodianship costs. They tend to focus on either the broader market or niche ultrarare,highworthsegments.Andtheir results are weighted, which can skew trends. That's why direct comparisons betweenourFundandtheseindicesmay notbeentirelyaccurate.

While we review these indices as a benchmark, the truest measure of our performance requires a longer term and broaderviewforcontext.

As we focus on the Fund's results in response to the larger economy and industry developments, a few trends became visible. Analysts see a split emerging between top-tier cars and the rest of the market. Demand for top qualityautomobilesisstillstrong.

PORTFOLIO COMPOSITION

The knowledgeable bidders at March's Amelia auction seemed willing to pay a premiumthisyearforthebestofthebest.

At this end, the story remains the same: People are willing to spend top dollar for theverybest.Thatiswhywewanttoshift more of the fleet to this end of the spectrum.

In contrast, more run-of-the-mill vehicles that bidders are likely to see more examples of had trouble earning top dollar.

Analysts think mid-tier vehicles - not million-dollar cars, but still rare and elusive-cansustainvalueoverthisperiod.

The Fund's results were in line with these market observations. Most cars sustained value, with modest returns, whereas the newer and more elusivevehicleslikethe

Fund's Ultimae continue to demand topdollarandgeneratemeaningfulgrowth.

Therewasalackofacquisitionreturnsfor the period, which was a shortfall for the Fund. Acquisition returns have the potential to influence, and bolster returns intheshort-term.

But the key takeaway is that we believe the Fund's success is sustainable, and evenhasthepotentialtobeturbocharged with time and more acquisitions of toptiervehicles.

FUNDSUNDERMANAGEMENT

FUM grew by +6% QoQ. The Fund's unit priceat31Mar'22was$1.19687,or$1.17422 pro forma for performance fees. The 31 Mar'23unitpriceof$1.26957representsa +1.4%QoQand8%YoYincrease,proforma forfees.1,2

Industry Outlook

FEATURE | THE COLLECTOR CAR MARKET IS EVOLVING

A TALE OF TWO CAR SEGMENTS

Results have been mixed

Ah,theexcitingworldofcollectorcars,wherethingsare always changing, and the only constant is the thrill of thechase.Inthismarkettrendssection,weexplorethe mostnotabletrendsinthecollectiblecarmarkettoday.

Now, opinions on the market vary like the speeds on a racetrack.Somefolksthinkit'sslowingdown,otherssay it's cruising along just fine, and a few say it's still accelerating.Andyouknowwhat?They'reallcorrect!

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But fear not, because we've got our eyes on the road and the Fund's geared up to take on the twists and turnsahead.

The collector car market has been anything but stagnant lately. It's been active, nuanced, and even a bit unpredictable. Results are mixed, with no cleardirection,butdon'tpumpthebrakes just yet! Top-tier cars are still thriving, it's the commuter cars that are floundering. Sale prices show that collectors are still willing to pay big bucks for exceptional cars. However, people are being more rational,evenforelitecars.Thisnewfound level-headednessisexpectedtocontinue.

Sure, the collector car market isn't as predictable as it once was, but that's not to say it's grinding to a halt. Buyers are becoming savvier about quality and models, making for a more nuanced market. Less predictable as the market may be, some of the age-old collecting trends hold true: global high-end marques(Ferrari,Lamborghini,MercedesBenz)haveheldtheirground.

Butnotallhigh-endmarquesarecreated equal. Some high-end marques soar in valuewhileotherscoast.

There are different ways to measure the valueofamarque.Ifyoulookatauctions, Ferrari has a clear lead. In the past 35 years, Ferrari has taken home the title of themostexpensivecarsoldpubliclymore than half the time, with only Mercedes comingclose,recentlyliftingthistitle.

Butauctionsaren'ttheonlywaytogauge a brand's worth. To truly understand a brand's value, we need to look at what people are buying across the entire marque'srun.Andwhenwelookatshare oftotalsales,PorscheandFerraritaketop spots - meaning even if another marque were to take the "most expensive" title, Ferrariisstillawinner.

It'sclearthathigh-endmarquesstillreign supreme across various methods to gauge worth. This is why we aim to align the Fund's marque mix with market demand, to ensure that no matter how the market evolves, our vehicles are in demand.Andasweprocuremoretop-tier cars, we'll be fortifying our growth potentialevenmore.

MUSCLE CARS

JDMMERCEDESBENZ CARS

MCLAREN PORSCHEMARTINASTONBUGATTIOTHER

FERRARI

LAMBORGHINI

ASTON MARTN JAGUAROTHER

FEATURE: THIS QUARTER'S PODIUM

THE RELUCTANT COLLECTOR

How a former Ford XB ute with a worked 302 Windsor V8, loud exhaust, wider tyres, and Radio Birdman stickers on the rear window owner became a Special Advisor to CHROME TEMPLE.

Legend has it that he has a freakish ability to detect the closest racetrack from any

Or just go to one of his Burrows Days...

(his invitation only track event) and watch him fly around the track in what he wouldn’t even call a hot lap.

That’s right, Luke O’Neill is driving. And this presented a bit of a challenge when deciding what Fund car to

One of the final cars in the

AMG CLK 63 Black Seriesthe homologation road car And the CLK was one of Luke's picks to be paired with. Of driver on the team would want to be paired with the But here's the thing about

he is as authentic as they

Not many road cars look at home in a genuine factory racing workshop, but the Aston Martin Vantage GT8 manages to. At its heart it's a GTE race car made into a road-going version. Designed to be a true “drivers car”, the team at Aston Martin focused on its handling over raw power, giving the Vantage GT8 an intensity and agility born in the heat of competition. Sculpted from lightweight carbon fibre, shaped by the quest for ultimateaerodynamicefficiency,powered by a race-proven V8 engine, the Vantage GT8 captures the unalloyed thrills of competition to deliver a uniquely authentic sports car experience. And that'swhatmakesittheperfectcartopair withLuke.

Luke's professional journey began with some eye-opening encounters with individuals who epitomised the antithesis of integrity and honesty. Rather than allowing these experiences to derail his aspirations, he instead chose to make thesevaluesthecornerstoneofhiscareer.

For Luke, the automotive industry can sometimes stumble over these critical principles,asentimentweshare.Andthat iswhyLukewaseagertolendhissupport to the Fund. As he sees it, our desire to professionalise the space is an opportunity to uphold these essential values in anindustrythatoftenlacksthem.

It's that serious petrol in his veins that makesLukeanidealadditiontotheteam.

Aston Martin GT8

when you're dedicated to pursuing your passions, you never know where it can takeyou.

For Aston Martin's Director of Special Projects & Motorsport, combining knowledgeandpassionresultedinanexciting

THE PERFECT BLEND OF KNOWLEDGE AND PASSION

to the keenest possible edge. Atitscore,theVantageGT8isasportscar that's built to thrill. It packs a 4.7-liter V8 engine that produces an impressive 440 horsepower, providing the driver with an exhilarating ride. The car's unique aerodynamic package, including a large rear wing, not only looks stunning but also helpstoimprovethecar'sdownforceand stabilityathighspeeds.

Appealing to both collectors and pure drivingenthusiastsalike,theVantageGT8 was limited to 150 examples and sold out beforedelivery.Only2-3weredeliveredto AustraliaandnoneweresoldintheUS.

AUTHENTIC AND UNASHAMEDLY EXTREME

Luke is reluctant to call himself a collector, even if he finds himself with more cars now than he has ever owned. After he shared his story about his first car,itresonatedwithmeasaV8madkid all grown up. "My first car was a Ford XB ute with a worked 302 Windsor V8, loud exhaust, wider tyres, and Radio Birdman stickersontherearwindow.Theultimate Gold Coast teenager's surf car. I've never admitted that publicly before but feel a weight off my shoulders having just owneduptoit!"

Aston Martin's business is building road cars, but racing is their soul. The Vantage GT8 is a true reflection of that, with an authentic & unapologetically extreme design inspired by their Le Mans racing programme. This car is equally at home on the street or the track, and it's a driver's dream machine in every sense of the word. With precision engineering and sleek styling, the Vantage GT8 is the ultimate ride for anyone who craves speed and power.

But, who amongst us hasn't had a carworthbeingembarrassedabout? Andthat'swhatmakescarcollecting sogreat.Theexperienceofcollecting ismorethanthecaritself,it'salsothe stories, discussions, and memories theyfoster.

AsLukeputsit,"Everycarisdifferent and achieves different things. I've been so lucky to drive an extraordinary range of cars and I love comparingthemallandfindingtheir strengths and weaknesses. Cars are such a cool thing, especially when shared."

And sharing is exactly what we aim with the Fund and the community we are building. It's also what Luke loves most about the invitation only Burrowstrackdaysheruns.

"Providing my community with experiences that they remember, respect, and share, that's what motivates me. Well, that and driving some of the best carsevercreatedonroadandtrack."

With so many shared passions, objectives, and values I knew how impactful Luke's contributions to the Fund would be, and he has not disappointed. After experiencing his track day, CHROME TEMPLE became sponsorsoftheBurrowsDays(normally only open to a limited closed list of guests) just so we could secure an invitationforourinvestors.

And as a Special Advisor to the Investment Committee, Luke is always pushingforsomethingrare,unique,and that has a great story; something you don'tseemanyof.

The mix of experts serving on the Investment Committee with various preferencesandknowledgeisoneof our greatest strengths. And it's always fun to learn about their personal preferences. For example, Luke's favourite personal car at the moment is his 1969 Volvo 144S, "It's old, slow, and tends to asphyxiate when driven but it relaxes me every time I'm in it and gets as many positivecommentsastheFerrari."

But despite personal preferences, when it comes to the Fund, Luke wouldlovetoseeitownaBMWE46 M3 GTR. A road car built in small numbers for homologation so BMW couldtakeitracing.

While able to make unemotional decisionsfortheFund,ourmembers

are still influenced from their own experiences. Take the 2004 E46 M3CS with a 6 speed manual and Alcantara seats that Luke once owned. It was the BMWs Motor Show car that was stolen from BMW Australia by a Melbourne drug cartel. Luke sold it to a friend who knewitwasafutureclassicand,despite owning other cool stuff after, Luke still lamentsthatdecision."Manyforgetthat financial returns on cars is a relatively new concept. But, as the Fund emphasises, a car like my Ferrari 328 GTS has a future owner who's a passionate enthusiast, grew up loving Magnum PI and wants to spend an exorbitantsumtoown."

And that's exactly what we are betting on with the Vantage GT8, that there is an enthusiast who needs to own a rare andelusivecarinAstonMartinhistory.

THE CARS WE COLLECT SAY A LOT ABOUT US