The Whisky Cask Club has launched Asia’s first-ever Whisky Cask Fund, a unique platform which allows investors to invest in premium whisky casks at competitive rates. It is the only fund of its kind to be regulated by the Monetary Authority of Singapore (MAS).
Whisky casks have proven to be continuous growth market, long standing as an investment which has seen annual returns of 15-20%, especially consistent when considering the imbalance between lack of supply of aged single malt Scotch whisky and growing global demand.
The Whisky Cask Fund now offers accredited investors an alternative investment instrument and powerful portfolio diversification with low correlation to traditional asset classes. The whisky cask business is a highly liquid market, offering multiple exit strategies, such as the secondary market, auctions, and bottling. This is a tax efficient fund with a targeted annual return of a 10% cash distribution and capital appreciation.
Alexander Knight, CEO & Co-Founder of Whisky Cask Club, the exclusive broker to the Whisky Cask Fund, explains "While other funds focus on whisky bottles, our whisky cask fund increases investors’ chances of profits on the sale of their assets since casks continually appreciate over time and are highly sought after by large whisky labels."
"Whisky only ages when it is in casks and has a natural time capitalisation – its value increases year-on-year with the ageing and rarefication of the barrels. As such, it shows steady growth over time as the underlying whisky matures and the number of casks decreases as they are sold and bottled for consumption. Moreover, as a physical underlying asset, it serves as a natural inflation hedge."
The Whisky Cask Fund is actively managed by Blair Road Capital. Participation in the Fund requires a minimum investment sum of USD50,000 and is available to accredited investors who meet the requirements set out by the MAS.