Ferrari fever? Classic automobiles roar into investment funds
Financial Express Mumbai|April 16, 2023
IN 1977, A Ferrari owner offloaded his 1962 250 GTO because his wife complained it was too noisy, recounts Andrea Modena, head of Ferrari's classic car division. It was either her or the car.
VALENTINA ZA & GIULIO PIOVACCARI
Ferrari fever? Classic automobiles roar into investment funds

"Nowadays, I'm not sure the wife would have won out." Times have indeed changed. In 2018, the same Ferrari model became the most expensive car ever sold when it fetched $48 million at auction. Last year, that record was flattened by a 1955 Mercedes-Benz 300 SLR Uhlenhaut Coupé that raced to €135 million ($149 million).

These kinds of mega deals are at the vanguard of billions of dollars of annual spending on classic cars globally in a wave of investment in this alternative asset.

Vintage cars have risen 185% in value over the past decade, outstripping the growth of luxury rivals wine, watches and art, and ranking second only to rare whiskies, according to Knight Frank's 2023 wealth report.

The market has expanded beyond a comparatively small community of collectors to include investors drawn by the prospect of high returns plus a lack of correlation with mainstream portfolio assets such as stocks and bonds.

"We've been monitoring the market for a long time," said Giorgio Medda, CEO and global head of asset management at Italy's Azimut. "The track record of the past 30 years tells us classic cars have become a financial asset class we want our clients to have in their portfolios."

This year, the asset manager is launching what it describes as the world's first "evergreen" fund to invest in vintage vehicles, and says it'll only bet on cars worth more than €1 million.

Advised by Alberto Schon, head of Ferrari and Maserati dealer Rossocorsa, the fund says it will pick vehicles with a unique history.

Esta historia es de la edición April 16, 2023 de Financial Express Mumbai.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

Esta historia es de la edición April 16, 2023 de Financial Express Mumbai.

Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.

MÁS HISTORIAS DE FINANCIAL EXPRESS MUMBAIVer todo
Financial Express Mumbai

Murdoch ally helps Ambani build media empire in India

SOHEE KIM PR SANJAI

time-read
3 minutos  |
April 18, 2024
Financial Express Mumbai

Pandya, Dube & Rinku: Can they finish for India at T20 World Cup?

GOING INTO THE 2022 T20 World Cup in Australia Dinesh Karthik was assigned the finisher role and the batting lineup was built accordingly.

time-read
2 minutos  |
April 18, 2024
Financial Express Mumbai

Nestle adds sugar to infant milk and cereal, finds report

A NEW REPORT has revealed that Nestle, the world's largest consumer goods and manufacturer of baby formula, is adding sugar to infant milk and cereal products sold in India, and other Asian, and African countries.

time-read
1 min  |
April 18, 2024
Financial Express Mumbai

India-made Daimler's electric mini truck to hit the road soon

INDIA WILL BE host to German trucking giant Daimler's only electric vehicle plant outside of Europe and Japan when it launches a locally-made electric light cargo truck in FY25.

time-read
2 minutos  |
April 18, 2024
Samsung eyes ₹10,000 cr from India TV biz this year
Financial Express Mumbai

Samsung eyes ₹10,000 cr from India TV biz this year

SOUTH KOREAN GIANT Samsung is targeting a turnover of ₹10,000 crores for its television business in India this year, driven by growth in sales of its mid to-premium segment models, said Mohandeep Singh, senior VP, consumer electronics business in India.

time-read
1 min  |
April 18, 2024
Financial Express Mumbai

Microsoft AI Copilot speed boost for coding

WHEN SOFTWARE DEVELOPER Nikolai Avteniev got his hands on a preview version of Microsoft's Copilot coding assistant in 2021, he quickly saw the potential.

time-read
1 min  |
April 18, 2024
Financial Express Mumbai

US, China debt pose risks for global public finances: IMF

THE WORLD's TWO great economic rivals, China and the US, will drive much of the increase in global public debt over the next five years, with US spending creating trouble for many other countries by keeping interest rates high, officials at the International Monetary Fund said in a report.

time-read
1 min  |
April 18, 2024
Financial Express Mumbai

Language models in consumer tech

This move is designed to ensure better user experience & privacy

time-read
2 minutos  |
April 18, 2024
Financial Express Mumbai

'Data centres' energy use doubles every four years'

Data centres are significant energy consumers, using about 2% of the world's power and emitting carbon dioxide equivalent to the airline industry.

time-read
2 minutos  |
April 18, 2024
Financial Express Mumbai

Vi FPO: Foreign players invest big; about ₹5,400 crore raised

GQG, Fidelity buy almost 40% of the anchor investor portion

time-read
1 min  |
April 18, 2024