In a context of strong growth for the values ??of luxury, Elite Advisers launches a fund dedicated to collectible watches.
According to the co-founders Miriam Mascherin and Michel Tamisier, the context offers strong potential growth. The value of the annual global watch market, which includes both collectors’ watches and contemporary watches, was estimated at EUR 25 billion. The vintage watch market for Patek Philippe, Rolex, Audemars Piguet, Omega et Cartier is estimated at EUR 5 billion per annum.. In 2009, Asia represented the largest export market for Swiss watches, accounting for 48% of the total value exported. The collectors’ watch market is attracting more and more Asian and Russian watch enthusiasts.
Vintage watches are still regarded as rare, exclusive and even unique items. Precious Time thus aims to build a 400-strong portfolio of watches, including both unique collectors’ items and extremely limited edition contemporary watches.
"It is precisely these rare models, of such complexity and interesting origins, that Precious Time will include in its portfolio. Collectors look for assets such as these, which, immune to the passing of time and fleeting fashions, represent a genuine investment alternative" said the fund manager, Alfredo Paramico.
Precious Time has been designed with a view to diversifying risk. “We invest in contemporary high value, limited edition watches, and also in collectors’ watches, such as rare Patek Philippe. Furthermore, to cope with any redemption requests, we will also invest in watches that provide a certain level of liquidity,” explain Miriam Mascherin and Michel Tamisier.
typical allocation of the portfolio is:
Patek Philippe 50 %
Breguet, Rolex, Audemars Piguet, Vacheron Constantin, Cartier 30 %
Exceptional contemporary watches 10 %
Cash 10 %
To ensure maximum transparency of the purchases made by the fund, a committee of experts dedicated to Precious Time was set up, bringing together two watch enthusiasts: Michel Stasser and Nicolas Mauboussin.
Michel analyses watch purchases from a financial standpoint and assesses their suitability as fund investments. Nicolas examines the watches and assesses their suitability for inclusion in the collection. The Committee of Experts assists the General Partner in evaluating potential investments.
Precious Time benefits from the status of Specialised Investment Fund (SIF) under Luxembourg law, which permits investment in new asset classes, in tangible and unusual assets such as rare and collectors’ watches.
According to the Elite Advisers’ co-founders, with increasing global demand for these rare and exceptional items, the outlook for long-term yields is high at around 15% net per year, coupled with low volatility. The fund is transparent and has a quarterly net asset valueuncommon traits in this type of specialised investment.
