In these uncertain times with markets disrupted the world over, some of our clients are focussing on uncorrelated investments.  One such investment, being Whisky casks is a TANGIBLE ASSET in a mature industry, which is fully regulated under HMRC rules. 

Whisky casks are seen by many as a reliable hedge against times on economic uncertainty and a hedge against inflation. Currently, 41 brands of Scotch whisky are shipped from Scotland to 175 markets around the world to a market currently worth £5.1 billion a year as an industry. So it’s no wonder that it represents around 75% of Scotland’s food and drink exports.

Scotch Whisky has historically delivered average returns of 8% – 12% p.a. over the last decade and is the undisputed king of whiskies. It’s a tried and tested maturing asset – the longer the whisky matures, the smoother and richer its flavour and the greater its value.

Investors typically purchase Casks of Whisky starting at £2,200 per cask which will then be placed into an HMRC approved bonded warehouse on-site at the distillery, and held for a minimum of 3 years, being the time required for maturation of the raw spirit to officially be classified as “whisky”. After 3 years, it can then be sold at a much-increased price, yielding a targeted ROI of between 8%-12% p.a., or held for longer in anticipation of further increases in value.

In addition to the investment return, the investment provides the following benefits:

1. It is a tangible asset in a non-correlated sector
2. It provides for geographical diversification of an investor’s portfolio
3. It is a currency hedge being denominated in GBP
4. It is an excellent generation gift

If you are interested or would like more information;