11/16/2023 0 Comments Fine wine and good spirits![]() That diversity will “help offset adjustments in the market,” he says, and will help compensate for any misses, which are “somewhat inevitable.” Currently the fund is looking at buying a cask from the now shuttered Japanese Karuizawa whisky distillery in addition to a cask of Scottish Bowmore 30-year-old, Ward says. auction prices of 100 bottles of the “oldest, finest, rarest single-malt Scotch,” according to Knight Frank.Ī selling point for Cask100 is that the fund won’t only buy examples of single-malt whisky or classified Bordeaux, for example, but instead will diversify its portfolio by buying across producers, vintages, and regions.įor instance, the fund will own rare Scotch whiskies, but also Japanese whisky and bourbon in bottles and casks, says Brian Ward, Winston Art Group’s director of fine wine and whisky. ![]() Similarly, whisky bottles tracked for the Knight Frank Rare Whisky index rose 322% over 10 years through June 30, although the index fell 4% in the 12-month period through the end of June. 31, compared with a gain of 37.68% for the five-year period through the end of August. The Cult Wines Global Index-based on data from the website Wine-Searcher-is down nearly 3.9% for the year through Aug. Over the last several years, the value of both rare whiskies and fine wines has soared, but their skyward trajectory has softened in the last year. Cult Wine Investment, based in the U.K., also creates personalized portfolios for investors, and currently manages a collection of about £290 million (US$362.2 million). Among available offerings, Vinovest claims to be democratizing access to fine wine and whisky by enabling individuals to create portfolios of their own for as little as US$1,000. The fund is expected to achieve an internal rate of return about 15% to 20%, and similar to private-equity funds with such returns, generally will charge investors an annual management fee of 1.5% of assets and 20% of profits earned above a predetermined benchmark.Ĭask100 is not the first or only wine and spirits fund. ![]() To get into the wine and whisky fund’s first closing-expected sometime in October-requires a minimum investment of US$10,000 that minimum will later rise to US$50,000. The joint venture between the companies is also currently raising more than US$100 million from accredited and institutional investors for an art fund holding works by a collection of emerging, midcareer, and established blue-chip artists. ![]() The question was, “can we do it with these asset classes? It was clear that we could.”Ĭask100 isn’t the first Artory/Winston fund. “We did a ton of research about how to make this work, how to make a return on investment that’s going to be interesting to people,” says Elizabeth von Habsurg, Winston Art Group’s founder and managing director. The Cask100 Fund, a US$20 million five-year closed-end vehicle, will invest in a diverse basket of rare and collectible whiskies, whisky casks, and wine, from Macallan’s Red Collection of single-malt whisky to bottles of Burgundy’s Domaine de la Romanée-Conti. Winston Art Group and its subsidiary WineAdvise-which for years have counseled wealthy individuals on their wine and spirits collections-has teamed with Artory, which offers a blockchain registry of verified information on fine art and collectibles, to create a vehicle for accredited investors to realize those potential returns.
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