Key Information Document
Purpose
This document provides you with key information about this investment product. It is not marketing material. The information is required by law to help you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products.
Product
Name Selected Car Investment 3 A/S
Manufacturer Selected Car Investment Management ApS
Contacting the manufacturer
Competent authority
KID Production Date
What is this product?
For more information, e-mail: info@scinvestment.dk or call 88 91 50 20
Finanstilsynet (the Danish FSA)
25 January 2023
Type An Alternative Investment Fund investing in super cars and exclusive car models
Term
Objectives
You are about to purchase a product that is not simple and may be difficult to understand
Intended retail investor
The fund is planned for 7 years, with a potential extension of 1 year and another potential extension of an additional 1 year We might discontinue the fund in case all the invested cars were sold
The AIF is a Danish limited liability entity and invests in portfolios of rare and high-end cars, seeking to reach capital growth through appreciation of investments in super and exclusive cars.
This product is intended for investors who:
• are primarily looking for capital growth and are expecting an exposure to this asset class;
• are willing and able to bear a total loss of their investment;
• are willing to accept a level of risk that is compatible with the summary risk indicator shown below;
• have the ability to make an informed investment decision through sufficient knowledge and understanding of the product and its specific risks and rewards, potentially resulting from experience of investing in and/or holding a number of similar products;
• have a minimum investment horizon of the recommended holding period specified below.
What are the risks and what could I get in return?
The risk indicator assumes you keep the product for 7 years. The actual risk can vary significantly if you cash in at an early stage and you may get back less. You may not be able to cash in early. You may have to pay significant extra costs to cash in early.
The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you. We have classified this product as 3 out of 7, which is a medium risk class. This classification takes into consideration two elements: 1) the market risk - that rates the potential losses from future performance at a medium level; and 2) the credit risk which estimates that poor market conditions are very unlikely to impact our capacity to pay you. Be aware of currency risk. You will receive payments in a different currency, so the final return you will get depends on the exchange rate between the two currencies. This risk is not considered in the indicator shown above. This product does not include any protection from future market performance so you could lose some or all of your investment.
Performance Scenarios
What you will get from this product depends on future market performance. Market developments in the future are uncertain and cannot be accurately predicted. The unfavourable, moderate, and favourable scenarios shown are illustrations using the worst, average, and best performance of a suitable benchmark over the last 12 years. Markets could develop very differently in the future.
Minimum There is no minimum guaranteed return. You could lose all of your investment.
Stress What you might get back after costs
you might get back after costs
return each year
you might get back after costs
return each year
Favourable What you might get back after costs
The figures shown include all the costs of the product itself and includes the costs of your advisor or distributor. The figures do not take into account your personal tax situation, which may also affect how much you get back The performance for the unfavourable scenario occurred for an investment in a suitable benchmark between October 2021 and November 2022, for the moderate scenario between May 2015 and May 2022 and for the favourable scenario between April 2011 and April 2018. The stress scenario shows what you might get back in extreme market circumstances. This product cannot be cashed in. If you exit the investment earlier than the recommended holding period you may have to pay extra costs Buying this product holds that you think the underlying price will increase. Your maximum loss would be that you will lose all your investment.
What happens if Selected Car Investment Management ApS is unable to pay out?
In the event of default of Selected Car Investment Management ApS, it should be noted that this AIF is not covered by any compensation or guarantee scheme. However, the assets are held in a segregated client account and therefore, should not be lost in case of insolvency of the management company
What are the Costs?
The person advising on or selling you this product may charge you other costs. If so, this person will provide you with information about these costs and how they affect your investment. If the fund is included as part of another product, e.g., unit-linked insurance, additional costs may arise for that product.
Costs over time
The tables show the amounts that are taken from your investment to cover different types of costs. These amounts depend on how much you invest, how long you hold the product and how well the product does. The amounts shown here are illustrations based on an example investment amount
We have assumed:
• - The product performs as shown in the moderate scenario
• - DKK 100,000 is invested
If you cash exit after 7 years
Total Costs DKK 39,540
Annual Cost Impact (*) 2.93%
(*) This illustrates how costs reduce your return each year over the holding period. For example, it shows that if you exit at the recommended holding period your average return per year is projected to be 12 06% before costs and 9 13% after costs.
We may share part of the costs with the person selling you the product to cover the services they provide to you. They will inform you of the amount.
Composition of costs
One-off costs upon entry or exit
Entry costs
Exit costs
Ongoing costs taken each year
Management fees and other administrative or operating costs
Transaction costs
We do not charge an entry fee, although the person selling the product may do so.
We do not charge an exit fee, although the person selling the product may do so.
1 50% of the value of your investment per year, for the management of the fund, plus an estimated 0.02% of the value of your investment per year, for the fund auditors. This in an estimate and the actual cost can vary.
0.002857% of the value of your investment per year. This is an estimate of the costs incurred when we buy and sell the cars (e.g. transportation costs). The actual amount will vary depending on how many cars we buy and sell, in which location and more
Incidental costs taken under specific conditions
Performance fees and carried interest
If you cash exit after 7 years
DKK 0
DKK 0
DKK 20,530
DKK 40
We charge 15% of the positive performance when we close down of the fund. The actual amount will vary depending on how well your investment performs. The aggregated cost estimation includes the average over the last 5 years.
DKK 18,970
How long should I hold it and can I take my money out early?
Recommended holding period: 7 years
The product is designed to be held until the maturity of the fund, which is scheduled to be between 5 and 9 years. The recommended holding period of 7 years is used since the risk, performance scenarios and cost information require a certain period for their calculations. It might be impossible to exit early, unless you find another investor who is willing to purchase your units.
How can I complain?
In the event you should wish to complain at any time about this product, or the service you have received, please email us at info@scinvestment.dk or call us at 88 91 50 20.
Other relevant information
Additional information on this product is available at our website www.scinvestment.dk. You can also ask for further information by emailing info@scinvestment.dk or calling us at 88 91 50 20.
This is a new fund and therefore no past performance and no previous performance scenarios are available.