The UK prestige performance vehicle market is unique. Many vehicle manufacturers are witnessing huge demands for new models, far outstripping supply with some models becoming almost unobtainable. This in itself has the making of an investment opportunity with many models being sold for 10% or more above the actual retail price.

This has obviously had a positive effect on the hire/leasing market for such vehicles in both the private and corporate sectors. Both markets are looking to lease these rare and hard to get vehicles. In most cases the retail outlets don’t even stock the model and are willing to hire the vehicle as a demonstrator for a potential buyer.
 
The effect doesn’t stop there, for even if the company or individual is fortunate enough to obtain a vehicle, if it is stolen or written off due to an accident, they are again faced with the same problem as the vehicle cannot be readily replaced. Once more the benefits are seen by the hire/leasing market, with insurance companies sourcing replacement hire vehicles whilst they await the supply of new units to their clients. There is also a demand for hire/lease from various media sectors, such as TV with promotional marketing and advertising campaigns, and the film and music industry.
 
INVESTMENT CONSIDERATIONS & RISK: The prestige vehicle hire/lease market offers incredible growth opportunity for investors. The residual values of the underlying assets of the potential companies are high again due to supply and demand. However it is about timing for both the acquisition and disposal of these assets and our extensive research has enabled RIO to reduce the downside risk by selecting companies who acquire vehicles from new and change their fleet at least every two years.
 
The RIO Prestige Performance Fund is intended to provide capital growth over the mid to long term. The Fund has put together a portfolio which includes an element of fixed interest securities designed to provide capital stability. The Fund may invest up to 50% of it’s holdings in this asset class. These securities are directly linked to prestige performance vehicle hire companies. The remainder of the Fund may be invested in direct equity holdings and the percentage of direct stock versus fixed income securities is at the discretion of the fund manager.

If you would like one of our advisors to call you to discuss investment opportunities, just ask.

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