World’s First Whisky Fund Set to List

The Whiskey Exchange

The Rare Whisky Apex 1,000 (the best-performing 1,000 bottles), increased in value by a record 38 percent in 2016.

The Single Malt Fund is the first fully regulated whisky fund, based in Sweden, set to list next month.

Fine wine is a classic alternative investment, but rare whisky has never attracted the same investment following. That might be about to change, as the the world’s first regulated whisky fund, The Single Malt Fund, has been granted approval for listing at the Nordic Growth Market (NGM) in Stockholm, Sweden.

Supervised by the Swedish Financial Supervisory Authority, the fund will be the first of its kind investing in limited rare whisky.

“The Single Malt Fund is created for whisky enthusiasts and others who want to invest in rare whisky,” says founder and CEO Christian Svantesson, who previously worked in the corporate world and at his family business. “When selling, the fund will first offer its limited rare whisky to its investors, giving them access to selected rare whisky that is hard to come by. Hopefully, this will make the rare whisky market more inclusive and accessible for everyone,” he adds.

Examples of whiskies in the fund include a 50-year-old bottle of Macallan or a 40-year-old Old Pulteney.

Whisky has proved its investment credentials in recent years. During the past 12 months (30 October 2016 to 30 October 2017), the broadest whisky index RW Apex 1000 has increased by 31 percent in value. During the past 10 years, the average annual increase has been 24.6 percent. According to RareWhisky101.com, which tracks UK whisky auctions, the Sterling value of collectable bottles of single-malt Scotch whisky sold at auction in the UK rose by 49 percent to a record £14.21 million in 2016, while the number of bottles of single-malt Scotch whisky sold at auction in the UK increased significantly by 35.21 percent to 58,758.

So why have investors traditionally flocked to fine wine and not whisky? Svantesson says it is a mystery. “The reasons why people buy wine instead of whisky is not clear,” he says. “We guess that the wine industry has been ahead of the whisky industry in terms of positioning and marketing. However, whisky is more suitable to invest in in terms of being a perfect ‘commodity’. It is less vulnerable, and can be stored correctly for up to 100 years without taking damage. Whisky has the same spectrum of taste, nuances, flavours and nose as wine otherwise, which is the base for its soaring popularity.”

The fund will be capped at €25 million and will have an active investment strategy buying and selling limited single-malt rare whisky. Sales will be managed through The Single Malt Fund’s website, where investors will be given the opportunity to purchase rare, selected whisky directly from the fund prior to it being offered on the open market.

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