An individual portfolio

Essentially, investing in whisky and setting up a portfolio is quite similar to creating a stock portfolio. Your whisky investment portfolio will be compiled in close consultation with you. This enables us to create a mix for each investor that offers the right balance between risk and return. For a minimum of € 25,000 you can start investing in whisky under the guidance of our professional advisers.

Tailored to your wishes

In order to provide you the best possible advice, we’ll first create a client profile in collaboration with you. An important part of the client profile consists of determining your expectations and wishes with regard to various factors such as:

Time period

You can offer and trade your whisky at any time. In order to achieve an optimal return, however, we recommend that you keep your portfolio for a longer period of time, preferably for a minimum of at least five years.

Return

The historical annual increase in value of whisky between 1936 and 2007 has been shown to be 6.6% on average. This is the outcome of an in-depth market study done by Michel Kappen, the CEO of Scotch Whisky International in the period 2002-2007.

Liquidity

It is becoming ever easier to trade your whisky. The number of platforms where exclusive single malt Scotch whisky is offered for sale has increased considerably in recent years (see for example >www.thewhiskyexchange.comwww.whiskymarketplace.com and www.whiskybase.com ).
In addition, there are sites where whiskies can be offered at auction. An example is www.whiskyhammer.co.uk. One of the most well-known platforms that facilitates both the buying and selling of bottles of whisky is the World Whisky Index (www.worldwhiskyindex.com ). The WWI is in fact more an exchange than an auction site.

At the moment, SWI offers the possibility to mediate on your behalf in the sale of your barrels. Currently the development of a new and extended version of the World Whisky Index is underway. This new version will offer you the option of trading in casks or parts of casks yourself.

Your investment strategy

Subsequently, we determine an investment strategy in collaboration with you and compile your whisky portfolio. Therefore, you don’t have to have extensive knowledge of the whisky market yourself in order to be able to achieve a good return.

Examples of an investment strategy are:

  • A longer period with a lower turnover rate,
  • A higher return and a lower risk.
  • A shorter period
  • A higher turnover rate and a lower expected return.
  • A more speculative approach with a higher risk and a higher return.

Your own portfolio

Based on your chosen strategy, your portfolio will be composed. It can consist of bottles and barrels and/or parts of barrels. Meanwhile your barrel is safely stored in our location in Scotland, where we have a bonded warehouse. This is a special area that is under the supervision of British customs.

The barrel will remain in the warehouse until the Optimal Anticipated Maturation period (OAM) has passed. After the OAM the whisky has reached the point where it has the highest quality and can achieve the highest return. At that time we decide to start the bottling process. Subsequently, the bottles are shipped from Scotland to the Netherlands.

Whisky portfolio: an example

Let’s assume that you can invest € 25,000 for a period of 5 to 10 years.

What might your whisky investment portfolio look like?