The Monetary Authority of Singapore regulates no other such fund (MAS). This is the first time MAS has overseen a fund of this type.
To capitalize on the growing demand for quality whisky in Asia, the Whisky Cask Club has introduced the region’s first Whisky Cask Fund.
Blair Road Capital oversees the Whisky Cask Fund on an ongoing basis. Accredited investors that fulfill the MAS’s criteria may invest in the Fund with a minimum of US$50,000.
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The Whisky Cask Fund provides tremendous portfolio diversification with little connection to traditional asset classes, as Alexander Knight, CEO & Co-Founder of Whisky Cask Club. There are several ways to get out of the whisky barrel industry, including the secondary market, auctions, and bottling. A 10% annual cash payout and capital appreciation are projected returns for this tax-efficient investment.
“Whisky only ages while it is in casks, and it has a natural time capitalization, so its value grows yearly as it matures and becomes rarer in the barrels. As the whisky underneath it ages and the quantity of barrels dwindles as bottles are consumed, the value rises steadily over time. In addition, Knight said, “it acts as a natural inflation hedge since it is a tangible underlying asset.”
Given the disparity between the limited supply of matured single malt Scotch whisky and the rising worldwide demand, whisky barrels have historically exhibited a constant yearly return of 15-20%.