Stamford Management chairman William Chan in an interview to Bloomberg said they plans to raise US$50 million for a fund that invests in wines and the same amount for a fund that buys Asian antiques.
The family office, which oversees about US$300 million, has already commenced negotiations with local and foreign private banks to raise money from high- net-worth individuals and other family offices.
The publication quoted Chan saying that the larger family money is increasingly looking to professionalize and is looking at Asia. Dealing with tangible assets makes it easier to connect more on an emotive level than say stocks or bonds, which are non-physical and which you would just keep with the bank.
The fund bought futures contracts on Latour 2008 En Primeur, a French Bordeaux wine, at about EUR150 a bottle in the middle of 2009, Chan said. The price rose to about EUR800 and the fund took profit by selling the futures at EUR700, he added.
Stamford has teamed up with Singapore-based wine distributor Hock Tong Bee (S) Pte, which has a wholesale distribution channel in Asia, to ensure the liquidity of the fund by giving it access to customers, Chan said.
"As lifestyle improves in Asia, the potential take up rate and growth for wines will be very large," Chan said.
The Asian Art and Antique Fund buys artefacts including jade, royal porcelain and Chinese calligraphy at public auctions such as those run by Christie’s International Plc, Chan said. The fund will only hold on to the investments for about six months to 18 months before selling at auctions and to institutional buyers, Chan said. The fund targets annual returns of 20%, Bloomberg quoted him saying.