AHE
The investment vehicle, Azimut SCA-SICAV-RAIF Automobile Heritage Enhancement (“Automobile Heritage Enhancement” or “AHE”), is an alternative reserved investment fund under Luxemburg law managed by Azimut Investments S.A. AHE is a highly innovative fund that will be distributed in all the countries where Azimut operates.
Automobile Heritage Enhancement uniquely addresses the growing investors interest in classic cars as an alternative to traditional asset classes. Demand is expected to keep growing supported by the increasing number of High Net Worth Individuals and Ultra High Net Worth Individuals, while supply will remain by its nature limited. This dynamic should further appreciate values in the future.
The classic car market has reached a significant size and is estimated to grow from 30.9 billion dollars in 2020 to about 43 billion dollars in 2024, thereby exhibiting growth rates higher than other luxury assets such as watches and artwork. In addition, the classic car industry has shown to be decorrelated from financial markets or other real assets and to have a more attractive risk profile than all financial and non-financial asset classes. This translates into a historically lower drawdown and an ability to recover losses faster.
The fund's investment strategy will focus on classic cars, supercars and hypercars produced in limited editions with an average value of more than one million euros, a market currently reserved to collectors. AHE is the only player with a structured investment process (across the different stages of purchase, restoration, preservation and sale), as expressed in the license held by Azimut Investments for the financial management of luxury collector cars.
The fund has unlimited duration (evergreen) as required by the nature of the underlying asset managed. It still provides exit options for the investor over time. This reinforces the long-term strategy of leveraging the automotive artistic heritage in the promotion of ESG characteristics, as required by Article 8 of the European Sustainable Finance Disclosure Regulation (SFDR), through the cultural and technological content enhancement of the cars as well as through the organization of events and exhibitions. Through the promotion of these features, AHE aims to contribute to the achievement of 4 of the 17 Sustainable Development Goals (SDGs) of the United Nations.
AHE has a dedicated investment class for collectors that allows individual cars or entire collections to be contributed to the fund. In addition, the same class provides access to a range of support and advisory services built on a customized basis for collection management.