SINGAPORE, April 1, 2015 /PRNewswire/ — The HK and Singapore-based investment structure The Watch Fund is officially nominated for the category “Best Alternative Investment Manager” at the renowned WealthBriefingAsia Singapore Awards 2015. Previous winners of the award — which is initiated by the global wealth management news portal WealthBriefing — include Standard Chartered Private Banking, DBS Bank and J.P. Morgan.
Although the nomination is already a high accomplishment for The Watch Fund (TWF), its unique concept may be crucial for the final decision. Investors actually hold and wear two to three times of their investment amount in luxury watches from day one — before TWF eventually sells the watches for more than a 10% net profit. Being the only structure that individually manages accounts in the alternative investing space of watches — and allowing investors to wear them from day one — it has a distinctive position in the category “Best Alternative Investment Manager”.
Dominic Khoo, founder of TWF and Southeast Asia’s only certified watch specialist, feels tremendously honoured to be a nominee: “The review of the applications is an independent and transparent process. The best senior banking and wealth management professionals scan every investment structure and only pick the top performers.”
TWF was only founded in 2013 but already has USD$38,000,000 assets under management — and is challenging a global player such as HSBC. “The nomination is a clear distinction to other alternative asset funds — it shows our top performance and innovation.” says Khoo.
The Watch Fund has two distinctive features: It is already the world’s biggest watch investment vehicle and the one with the highest returns. The performance is remarkable: Whilst one “unlucky” investor took back a 10% net gain after 364 days of wearing his three 6-digit priced watches, other investors have done better — with the highest return of 54% in just three months or 216% annualized.
However, the typical investor is not a watch enthusiast: “Ironically you can say that our investors have no real interest in watches.” says Dominic Khoo. “They are focused on the returns and those are great. The Watch Fund has an international database of more than 9000 watch collectors that buy from the investors. If you understand the difference between a collector and an investor, you can understand where the money making is.“ he explains.
“Just imagine us a one-year fixed deposit — instead of a 1% interest rate and a token umbrella, you can expect more than 11% and a whole range of investment-grade luxury watches as your personal, verifiable, usable collateral from day one.” Investors can even choose from an optional 10% net annualized guaranteed return — but Khoo clarifies that whilst this option might mean downside is protected, upside over and above the 10% goes straight to The Watch Fund’s revenue.
Another unique proposition of The Watch Fund — that could influence the final decision for the WealthBriefingAsia Singapore Awards 2015 — is that there are no annual or management fees. It survives of transaction fees which Khoo believes makes the TWF and investors completely aligned: “If you don’t make money — we don’t survive.” says Khoo.
The performance of alternative investments is outstanding: According to the Coutts Index (2014) passion investments such as watches have risen 176% since 2005 and are outperforming shares in the MSCI All Country Equity Index. “Bearing in mind that this period includes the recession of 2008, it is important to invest not just in physical products with dying labour craft but also in uncorrelated assets in a world of volatility.” Khoo advises.
The award ceremony of the WealthBriefingAsia Singapore Awards 2015 is initiated by the global wealth management news portal WealthBriefing and will be held on 16 April in Singapore’s world-famous Raffles Hotel. WealthBriefing is published by UK based Clearview Financial Media, the world’s leading provider of business intelligence in the private banking and wealth management sector. Aiming to connect investment vehicles and client communities in financial centers such as New York, London, Hong Kong and Singapore, the prestigious awards are handed over by financial experts and top managers.
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