Monthly newsletter for April 2022

Dear All,

We come to the closing of our 3rd year of operations at SVC. We have seen a lot over the last 12 months: with Covid restrictions (mostly) being lifted globally, spiralling inflation hitting +8% in the US over the last few weeks, interest rate hikes, a war in Europe, leading to very erratic equity and forex markets.

This uncertainty has broadly worked in the whisky market’s favour, with investors and collectors continuing to diversify towards alternative physical assets in an attempt to protect against market risks. This has led to fewer bottles supplied on auction and steeper rise in prices driven by demand, leading to some really big jumps over the last year. These dynamics have driven record annual increases in bottles in our portfolio like the Springbank 16 year old Local Barley by +224% and Hanyu 2000 Ichiro’s Malt ‘Card’ #7004 / Seven of Clubs by +222%. The Japanese category continues to show real promise for the future, and finally the realisation in the market that Springbank has no supply is going to push prices up.

All in all, we are extremely excited to share with you that we have had our best year on record by delivering +20.02% for our investors. This equates to a very healthy 18.31% ARR and 65.52% return since inception, and comes down to strong whisky category insights, well balanced portfolio management and excellent bottle selection by the operating team at SVC. Over the course of the coming few weeks we will be preparing a press release across a variety of publications, and social media channels to help showcase this achievement. In the meantime, please do reach out to us if you would like to know a bit more on how our portfolio has been tracking.

Our 4th year is turning into an exciting one, with more drinkers and collectors entering the category (especially from China and India), which will lead to continued and relentless price increases, and great opportunities for smart bottle selection and profits to be made along the way.

Thank you once again to all our partners, collectors and friends that have stuck with us along the way, without your support we would not have the opportunity to be shaping the whisky landscape and investing in some truly historic whiskies for all our investors.

Sláinte!

Marek, Marc, Neil, Gary