Whisky as an asset class has outperformed the S&P 500, and all other alternative asset classes like wine and art, by far in the last 10 years according to the Knight Frank Wealth Report 2024.

Blue-chip brands like Macallan and Yamazaki have proven track records of value appreciation and liquidity, and offer greater capital stability and confidence, particularly during times of economic uncertainty or geopolitical instability.

This value retention is prioritizing quality and rarity when selecting the Fund’s investments, seeking assets with intrinsic value, authenticity, and scarcity.  High-quality and rare assets tend to hold their value better over time and have the potential for capital appreciation, making them attractive long-term investments.

Whisky quality, by its nature, benefits from longer time in its casks and therefore investors should forecast a longer investment horizon.  Like wine, whisky cask investors will be rewarded for patience.  There has been a wave of whisky cask investment clubs springing up and most of these investments are unregulated. In addition, cask investments present different higher risks hence the potential for good returns. Investors should be cautious when evaluating these investments. 

Basic portfolio strategies and discipline apply to these investments.  Investors should clearly define their investment objectives, risk tolerance, and time horizon clearly before building a portfolio of these investments.  Understanding personal financial goals, liquidity needs, and tolerance for market volatility will help guide asset allocation decisions and risk management strategies. 

Diversification is essential for mitigating risk and optimizing returns in a whisky investment portfolio. If this is challenging to the investor, the Provenance Whisky Investment Fund is structured with three different strategies to provide maximum liquidity and risk protection for the whisky investor. 

If the parameters of this asset class is attractive, and if you prefer to transfer responsibility of managing the challenges and risk management, a good alternative is investing in Provenance Whisky Investment Fund.  Through our fund, investors can identify and capitalize on emerging our expertise to unlock value and achieve financial goals.

Market volatility and cyclical trends apply to whisky investment, but well managed portfolios across different asset classes and geographic regions can mitigate these risks.  Additionally, we conduct thorough research and stay informed about market trends to make informed decisions and identify opportunities for value appreciation.  The best friend of our whisky investments, however, is time.  Historically, the scarcity factor smooths out volatility and almost all of the whisky investments appreciate over time.

It is key for us to emphasise verification of authenticity and provenance of whisky assets to prevent the Fund to the risk of purchasing counterfeit or misrepresented items.

To manage this risk, Provenance Whisky Investment Fund invests as close to source as possible, and goes through reputable experts, appraisers, and authentication services to verify the authenticity and provenance of assets. We are also regulated by MAS and audited by an independent fund administrator and auditor.

Investment level whiskies by virtue of its value because of scarcity, have limited liquidity compared to traditional financial assets, making it challenging for investors to buy or sell assets quickly.  Investors should carefully consider their investment horizon and liquidity needs before investing in illiquid assets such as rare bottles and casks.

Our relationships with reputable dealers, auction houses, and private collectors can also facilitate transactions and improve liquidity.

PWIF regularly review and rebalance strategies, portfolios, adjusting asset allocation and investment strategies as needed to optimize returns and manage risk effectively.  With its multi-strategy and ability to generate cash flow driven returns, it is the only open-ended fund of its kind in the world.

The fund maintains a long-term perspective and focuses on assets with intrinsic value to mitigate the impact of short-term market fluctuations. Provenance Whisky Investment Fund focuses on purely whisky assets as a financial investment, and can forecast capital gains of easily 20% net of fees in the next few years. 

 In addition, the fund is optimized for tax considerations and falls under the Section 13 tax exemptions.