The Strategist

Whisky Fund to Pay First Dividend to Investors

03/02/2016 - 14:14

A private fund The Platinum Whisky Investment Fund, established in June 2014 in Hong Kong, is preparing to pay first dividend, said the fund’s CEO Rickesh Kishnani
The fund buys old and rare malt whiskeys. Some time later, when the beverage’s cost increases, the fund sells it. Part of the collection is already for sale, the proceeds will be used to pay first dividend.

"We hope to announce the payment of dividends in the next three months, we expect a 5-10% level", - said Rickesh Kishnani. "Our goal is to return to investors about 15-17% per year", - he added.

The Fund was able to raise $ 9 million investment; $ 10 million are required in total. About $ 6 million have already been spent to buy more than 7 thousand bottles of the beverage. The collection’s value assessed every six months by independent experts. The last assessment was carried out January 1, 2016. By the time, 44.4 million was spent on the 7861 bottle, later the fund spent another $ 1.5 million. The collection was estimated at more than $ 5.6 million, the cost has increased by about 26 %.

David Robertson, former master distiller in a Scottish distillery The Macallan, is in charge of replenishment of the fund’s collection. All bottles were purchased from private collectors, selecting old rare drinks. Platinum Whisky Investment Fund’s collection stores undoubtedly rare examples of the beverage. Among them, for example is single malt whiskey aged 60 years, a special edition of the Scottish distillery The Macallan. The drink is valued at $ 200 thousand.

The Fund is registered in the Cayman Islands, and controlled by SinoPac Solutions and Services Ltd. The minimum amount of investment is $ 250 thousand.
Whiskey prices are much less volatile than the stock market, and investments in the fund can be an element of diversification of investments, said Platinum Whisky Investment Fund’s investor, a businessman from Hong Kong Ted Hodgkinson. "The degree of certainty here is much higher than on the stock market", - he said, adding that investment in the Fund may compensate some of the losses for the overall investment portfolio.

According to Rickesh Kishnani, he hopes to finish raising capital this year thanks to continuing search for new investors and additional funds from already found investors. By the end of the year, the fund has completed acquisition of whiskey. It is expected that the collection will consist of 13-15 thousand bottles.

Prices of single malt whiskey at auctions have increased significantly in recent years. Rare Whisky 101 Index, which takes into account cost of 1 thousand best bottles of whiskey, indicates that prices for this drink more than tripled since 2008. The price surge was triggered by supply shortages and increased demand in Asia, especially in Taiwan.