Whisky as an investment
The Single Malt Fund invests in whisky – the finished product. Why? Because Whisky is the number one alternative investment the last 10 years.*
The Single Malt Fund presentation 2019
Why a whisky fund?
The Single Malt Fund’s intention is primarily investments in limited edition bottlings of whisky, so called ”limited & rare whisky”.
The reason being, that there are very special and beneficial structural factors that makes this diversified market very interesting from an investment standpoint: Partly, there’s a growing demand globally, in particular when it comes to the Single Malt segment. This can be identified particularly in the United States, but also in the far east (APEC) and the middle east (EMEA). India and China is also showing a very good increase in sales of Single Malt, especially exclusive and limited editions. There are huge investments being made by the leading international producers to push these two gigantic markets into gear. The production of whisky is time consuming and slow; a quality whisky often takes between 10 to 15 years, or even longer, to produce. Hence the growing demand can be hard to match. (Read more about the whisky market here.)
Furthermore, limited whisky, which we intend to invest in, has the natural trait of being consumed (thankfully!) and therby the availability/supply decreases with time. With a diminishing supply of a specific whisky, the price goes up. The reason the entire market is seeing a vigorous price hike is driven by two factors. The supply diminishes over time and the income improvements in many developing markets enables an increase in purchasing power, which in turn drives demand.
These two structural factors interact in a unique and advantageously way from an investment standpoint, with prices increasing as a result. Because of this, The Single Malt Fund can benefit from this, which is shown in the graph above.
These two structural factors interact in a unique and advantageously way from an investment standpoint, with prices increasing as a result. Because of this, The Single Malt Fund can benefit from this, which is shown in the graph above.
A close collaboration with the whisky industry
The fund has close commercial bonds with the producers in the whisky industry.
The response from the industry has been positive. In part because we are regulated and under government supervision. Partly it’s appreciated that the fund is open to “regular whisky lovers”.
We act as an interface between the Whisky industr and the distilleries on the one hand and Whisky enthusiasts, investors and collectors on the other. The Single Malt Fund offers a new way to experience the wonderful world of Whisky.
Security and transparency
The Single Malt Fund’s prospectus has been approved by Sweden’s financial supervisory authority Finansinspektionen. By doing this, we have created the world’s first regulated whisky fund, investing in whisky and therefore we can invite the general public to invest.
Being regulated means that we are under supervision of Finansinspektionen. The securities held by our investors are listed at Nordic Growth Market, Stockholm (NGM-NDX). The fund has to comply with the market place’s regulatory requirements that a listing demands.
The valuation principles for the net asset growth and final return on investment are subject to the international financial reporting rules, IFRS.
The net asset value and return on investment are submitted to a yearly review by PWC and valued by RSM, independent valuers (authorized by Swedish inspectors of Auditors).
All Swedish common funds are required by law to have a depository. This depository shall receive and store the property owned by the fund and make sure that publication and redemption of fund shares are done in accordance with current regulations. The depository monitors all transactions performed by the fund. The Single Malt Fund has signed an agreement with Intertrust to act as depository for the fund.
The Single Malt Fund has sought these regulatory and administrative instances to ensure investor security and transparency demands for openness and acquis, required by all involved parties.
