Passion Investment Allier la passion à l’investissement … le thème de ce blog

Interview of Mr. Michel Tamisier,
Managing Partner, ELITE Advisers, creator of the fund “Noble Crus”

1. Could you tell us a few words about your carrier path?

I have spent my entire career (over 20 years) working in the Fund Industry. I have experienced almost all of the different “métiers” in this industry from operations (Transfer Agent, Pricing, Fund accounting, reporting…), to project management, product management, sales and general management. I worked for many prestigious companies like Crédit Agricole Paris, J.P. Morgan Paris and Milan, Paribas Milan and Chase Manhattan Luxembourg now J.P. Morgan Chase Luxembourg. My last mission as an employee and Managing Director was to develop Carmignac Gestion Luxembourg’s activities in Europe with my co-director at the time and now co-Managing Partner for Elite Advisers Miriam Mascherin.

2. You have created a fund dedicated to wines. Are you the only actor on this market?

We in fact conducted studies on this market before creating “Nobles Crus”. There is accessible information on around 15 funds investing in wine in one way or another around the world. Most of them are (at least for us) too complex, located in offshore jurisdictions, not really transparent, not very flexible, difficult to access and some of them are closed to further investments. In terms of investment objectives the few funds that are relatively successful are really concentrated in Bordeaux and primeur which is obviously easier to manage because you have no logistic problems. Nobles Crus, our fine wine fund, on the contrary, is voluntarily concentrating on vintage wines for 70% of the portfolio even if it is more complicated to manage (transportation, insurances…). Within which, 50% is invested in Burgundy wines even if these wines are more difficult to find, you need to be well introduced to be able to access some of the most prestigious wines from that area. Nobles Crus is also investing in some Italian and Spanish wines to diversify further and in a few very exceptional ones around the world. This explains why our performances are more interesting today.

3. Could you briefly present us the principal characteristics of functioning of these funds?

“Nobles Crus”, is a compartment of the Sicav/SIF Elite’s Exclusive Collection. Under the concept of “Passion Investment^TM” our aim is to provide investment solutions that are de-correlated from traditional financial markets (Today’s markets highlight this importance all the more so), that are good diversification tools, that are investing in tangible goods, that are understandable to the public, that are performing but also and above all that are themes of a passion for our client base.
The difference with our competitors:
Our fund is onshore, regulated by a European regulator, well serviced, monitored and controlled by some of the best Luxembourg providers (CACEIS as a Depositary Bank, Deloitte & Touche as an auditor and Allen & Overy as a legal adviser). Besides this it is open, transparent, has a monthly NAV, no lock up period and “cherry on the cake” allows redemptions in kind under certain conditions.

4. What is the profile of your investors?

Our investors are international and quite diversified in terms of types. They are private clients willing to declare themselves as sophisticated investors and invest a minimum of 125.000€. They also are intermediaries (IFAs, Private Banks, Insurances, Fund of funds) that invest for their clients and as Institutional Investors they do not have to comply with the minimum investment amount. These intermediaries today are happy to provide positive news to their clients, organise wine tasting sessions and present a product that performs.

5. What is/will be the expected performance of these funds and how it is positioned with regards to the other categories of alternative assets?

The performance of “Nobles Crus” is 17,48% year- to- date. We strongly believe that this fund will constantly offer performances ranging between 20 and 30% annually. The rational behind this is based on the fact that we are investing in the best wines in the world. Here we are talking about the only physical good that improves with time, that is produced in very limited quantity and where quantities produced cannot be increased. We all know that the entire planet wants to buy and drink those wines in particular the new emerging economies. As a consequence, there is a pressure on prices that is not about to stop. Two main reasons for this: even in bad economic conditions as it is the case today there will be more and more millionaires around the world able to buy these wines and also as you know wine tends to be drunk which leads to even less quantities available for older millesimes and this brings additional pressure on prices. Added to this, if for example 2008 is not a great year, older millesimes will find themselves with increased demand and therefore further price pressure.

6. What is its benefit today and what are the prospects of the funds dedicated to alternative assets?

Investors today and in particular in these difficult times are looking for diversification, de-correlation, low volatility and good performance. This is what alternative investments have been doing for some time now and there is also a future for these strategies in normal conditions too. New investments ideas will always exist. The Alternative investment world allows these ideas to take form, they are often the forbearers for future investment trends and investors will always want to find the latest investment strategy. Its part of human nature…
We believe that investing in a tangible product (for a change, not a structured product, nor synthetic products, etc…) which relates to a passion, allows the investor to establish a more personal relationship with his investment and this brings emotions back into the financial world. In our regular meetings with investors I must say it is more pleasant to talk about Château Latour you immediately have peoples attention they understand what you are talking about its definitely not the same when you talk about an equity basket based on the Hang Seng index !
Investing in tangible goods allows the investors to indirectly “own” the underlying goods. If you held equities with certain financial institutions these days you could have lost everything. Now if top world wines had lost their value (which never occurred in the last 30 years), “Nobles Crus” would lose its value also but in the worst case scenario our clients would have to drink some Petrus 61, Romanée Conti 2005, Mouton 45 and Chateau d’Yquem 21… tough life…