The Watch Fund

The Watch Fund is an investment vehicle that gets returns for investors while they wear the very watches they invested in. The fund is based in Geneva, Hong Kong and Singapore.

Foundation

The Watch Fund was launched in February 2013 by watch expert Dominic Khoo and 7 other partners [1] 2 of our newest board members include Korsak Chairasmisak and Michael Tay. Dominic Khoo was trained as a watch expert at auction house Antiquorum and recently started up the watch auction arm for British auctioneer Spink (previously owned by Christie’s).[2] He was inspired by a Luxembourg-based firm that started a similar watch fund.[3] Contrary to the initial idea, this fund hands over the investment-grade watches during the contract period. According to Yahoo! Finance, the fund’s total AUM currently stands at USD$31,000,000.[4]

The concept

After an initial investment, the investor takes over beneficial ownership of a portfolio of watches including the papers and boxes. [5][6] The fund offers access to limited editions, timepieces with special serial numbers and “provenance pieces” previously owned by celebrities or historical figures.[7]

Financial Performance

According to Yahoo! Finance, Investors are told to expect a minimum return of 20% at the end of three years.[8] Recent studies show that alternative assets such as classic watches, rare stamps and fine wines outperformed during the last decade. According to the Coutts Index, classic watches have almost tripled in price with an increment of 176% between 2005 and 2013.[9]

References

  1. ↑ http://bizdaily.com.sg/newsite/a-world-first-celebrity-photographer-dominic-khoo-retires-from-art-to-go-into-finance/ Celebrity Photographer Dominic Khoo Retires from Art to Go into Finance | Biz Daily, 13.12.2013 (accessed 07.01.2014)
  2. ↑ https://www.spink.com/press-releases/spink-to-launch-specialist-watch-department-in-hong-kong.aspx Spink to Launch Specialist Watch Department in Hong Kong | Spink, 05.12.2013 (accessed 05.01.2014)
  3. ↑ http://www.blouinartinfo.com/news/story/954024/earn-money-off-your-next-luxury-timepiece Michelle Tay (2013): Earn Money Off Your Next Luxury Timepiece | Blouin Artinfo, 05.09.2013 (accessed 01.01.2014)
  4. ↑ http://finance.yahoo.com/news/world-first-celebrity-photographer-dominic-020000226.html A World First | Yahoo Finance, 12.12.2013 (accessed 31.12.2013)
  5. ↑ http://www.cpf.gov.sg/imsavvy/infohub_article.asp?readid={493790846-18880-3921712040} The Sunday Times (2013): Watch how time makes money, 01.09.2013 (accessed 15.12.2013)
  6. ↑ http://asiarisingtv.com/creativity-commerce/ Editorial Team (2013): From Creativity to Commerce, 26.12.2013 (accessed 03.01.2014)
  7. ↑ http://www.blouinartinfo.com/news/story/954024/earn-money-off-your-next-luxury-timepiece Michelle Tay (2013): Earn Money Off Your Next Luxury Timepiece | Blouin Artinfo, 05.09.2013 (accessed 01.01.2014)
  8. ↑ http://finance.yahoo.com/news/world-first-celebrity-photographer-dominic-020000226.html A World First | Yahoo Finance, 12.12.2013 (accessed 31.12.2013)
  9. ↑ http://www.coutts.com/news-and-insights/press-releases/2014/coutts-index-reveals-passion-investments/ Coutts (2014): Coutts Index reveals passion investments have risen 77% since 2005, outperforming | Coutts, 06.01.2014 (accessed 22.01.2014)
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