Monthly newsletter for April 2021
A slight delay in our update this month, but we have just closed our books for the year, and what an incredible year it has been. Between Brexit, forex fluctuations, Covid and significant volatility in the markets, our returns have remained consistent for our investors. What we are extremely proud of as a team is having beaten our annual benchmark return once again, with 15.67% in our second year of operations, and a 37.91% return since inception.
What is even more exciting is that we are ahead of the broader whisky market with our portfolio returns. In the most recent 2021 Knight Frank Luxury Investment Index Report whisky again topped the charts with 10 year returns of 478%. However, Rare Whisky 101’s tracking index for Knight Frank only delivered -3.5% for the year (focused on ultra-rare luxury bottles); whilst their Apex1000 index of top 1000 bottles and brands realised an +8% increase. What is also interesting to see is Macallan’s brand taking a hit in 2020 due to the average higher valuations with a -15% decrease in the Knight Frank index vs +5% for non-Macallan bottles. For a full comparison of Rare Whisky 101’s indices you can visit their site here.
The Collective is therefore comfortably ahead of the market, and it is testament to our investment strategy: a well balanced and diversified portfolio, together with a rigorous focus on specific bottles and brands that maximise investor returns. Over the last month we have seen a +112% increase in the Hanyu 1991 “Two of Diamonds”, and a similar valuation increase in our Macallan Fine & Rare 1979.
Over the last month we have also jumped at an opportunity to invest in three sherry butt’s laid down in 2001, which are now almost 20 years old. Although we prefer bottles as an investment, when the price is right casks can definitely give our portfolio a boost. If you had read our recent article on the difference between bottles vs cask investment you would understand the opportunity we have in bottling an excellent 20yr old whisky at a very significant premium. The great news is that through our partnership with WhiskyBrother, we will be able to complete the bottling and provide a route-to-market relatively easily. These bottlings will realise significant returns for our investors over the next few years.
We finally have a date for our first annual public webinar on Saturday 1st May at 21h00 SGT (13h00 GMT, 09h00 EST, 06h00 PST). Please RSVP to receive the calendar invite by clicking here. During the course of the session we will cover our observations of the trends in whisky today, brands you need to watch for your own whisky investment, the global whisky macro environment; and then go deeper on our portfolio returns, investment strategy update and goals for the Collective for the next year. We’re also happy to answer any question you may have, and share strategies on how you can also build your own whisky portfolio.
We’re looking forward to meeting some of you then!
Marek, Marc, Neil, Gary