Fund taps wealthy Scotch whisky fans
Wealthy UK individuals with a minimum of around £87,000 to spend are being targeted by a fund set up to invest in rare malt whisky.
The Single Malt Fund – run by former Diageo executive Ed Forrest – is the world’s first regulated and publicly listed fund to invest in single malts.
The Swedish-listed fund, which aims to raise up to €25 million (£21.6m) in total, has been in operation for six months and is now targeting UK investors.
It is aiming to tap into a growing demand among high net worth individuals for investing in alternative assets as part of their portfolio.
Between 2014 and 2019, an index developed by analysts Rare Whisky 101 saw growth of 162.2 per cent, compared to 13.1 per cent from the FTSE 100 and 19.2 per cent from gold.
The fund is being marketing to professional investors in the UK via wealth managers and family offices with a minimum investment of €100,000. It has its headquarters in Dublin and has recruited industry veteran Forrest to run operations including buying and selling of whisky.
Single Malt Fund’s chief executive Christian Svantesson said: “The fund is unique in that we are not only creating a vehicle for whisky enthusiasts to invest in whisky. We are also allowing them to indulge in their passion by providing first access to bottles of rare and collectable whisky once the fund decides to sell.
“By launching this fund, we are tapping into a growing demand among high net worth individuals for investing in alternative assets such as art, wine, cars and watches. However, unlike any other passion pursuit, The Single Malt Fund is regulated and listed on a public exchange, making our investment process fully transparent.”
Notable investments made by the fund so far include a cask of 1977 Littlemill from the oldest distillery in Scotland and a 37-year-old Port Ellen from Islay.