Asset Management from €100,000
We offer three types of asset management contracts, each with its own mix of assurances, liquidity and return. All asset management contracts have the following characteristics:
You always buy your whisky below the current market price. This creates a kind of stepping stone for your future return.
The duration is always at least 5 years.
The whisky in the portfolio is your physical possession. However, you can’t sell them or withdraw the bottles from the portfolio by having them delivered to you.
Portfolio trading is done entirely at the discretion of SWI.
When it comes to customer support, SWI can assist you in turning your whisky portfolio back into cash at maturity.
Each portfolio is registered in the World Whiskey Index and can be consulted online.
None of the agreements offer you a principal guarantee.
Past performance is no guarantee of future results.
Contract type 1: lower risk
Assurances
Liquidity
Return
Fixed remuneration
The fixed remuneration contract type has the lowest risk profile of all contract types.
Characteristics Fixed Remuneration:
- Yearly a growing, fixed percentage of your investment.
- At the end of the last contract year you receive the actual value of your portfolio with a maximum of the initial investment and the remaining remuneration.
- Contract duration: minimum 5 years.
Contract type 2: average risk
Assurances
Liquidity
Return
Cap-Floor
The cap-floor contract type has a higher risk profile than fixed remuneration. This contract has a maximized return between 7.2% and 8.25% net. There is no minimum return, because the initial investment sum is not guaranteed. You do receive a minimum annual remuneration of 3.2% nett (floor).
Characteristics
- Portfolio will be composed with 80% casks and 20% bottles.
- A variable annual remuneration of your invested sum with a cap and floor.
- Annual net remuneration: between 3.2% and 7.2%* (when invested sum is 100K)
- Remuneration will be paid out annually or at the end of the contract term.
- At the end of the last contract year you receive the actual value of your portfolio with a maximum of the initial investment and the remaining remuneration.
* This percentage will increase when the invested sum will increase.
Contract type 3: higher risk
Assurances
Liquidity
Return
Performance
The risk profile of the performance contract type is higher than cap-floor. The return is not maximized and you and you bear the full risk as an investor. On the other hand, you also receive almost the full return. Almost, because if the portfolio performs well and exceeds the hurdle rate, Scotch Whisky International receives a performance fee.
Hurdle rate
The hurdle rate (between 6,6% and 8,35%) is the return that needs to be achieved at the end of the term before Scotch Whisky International is entitled to a performance fee. The performance fee is 10% - 25% (depending on the invested sum) of the result above the hurdle rate.
Characteristics
- Portfolio will be composed with 20% casks and 80% bottles.
- Maximum capital growth, no annual remuneration.
- The investor bears the full risk
- Return is almost entirely for the investor
