At The Antique Wine Company, we are serious about fine wine investment and advise a wide-range of clients on their investments, from purchasing en primeur wines to the future sale of perfectly aged collectibles. Fine wine can play an integral role in your diversified investment portfolio.
As awareness surrounding the benefits of fine wine investment increases, our wine experts offer individualized packages and pointed advice in what is a highly complex marketplace. Our advisory services are bespoke and are tailored to be as extensive or specific as required, depending upon your instructions.
What makes fine wine a sound investment?
Classed as an alternative investment, fine wine should be considered as a vital component of any diversified portfolio. As an asset class fine wine is unique. It is a tangible and consumable investment that benefits from a unique supply and demand environment.Strict laws govern the production of the majority of investment grade wines so there is only ever a finite amount of each vintage produced. Given the burgeoning appetite for fine wine around the globe the demand easily outstrips supply and the price increases.
At this time wine as an investment is not subject to capital gains tax as it is classed as a wasting asset. Couple this with the ability to buy, sell and store wine in bond and the results are tax free returns. Please note that The Antique Wine Company advises you to consult an independent financial advisor or accountant for advice on the matter.
Speculation and Current Trends
Several obstacles have prevented fine wine from becoming part of traditional investment markets. These barriers have also created investment advantages for interested parties:- The policy of the châteaux and distributors is to set aside allocations for loyal customers in various markets around the world, so it is difficult for speculative investors to invest heavily.
- Fine wine is rarely leveraged or funded by debt, so forced-sale disposals rarely happen.
- Widespread growth in the appreciation of fine wine, and increasing consumption in emerging markets, has generally been sustained through changing economic cycles.
- During times of economic adversity, some speculative capital migrates from financial investment markets into tangible commodities, including fine wine. This usually compensates for the inevitable drop in demand for consumption—the result being a levelling of prices, rather than a crash.
Advantages of Fine Wine Investment with
The Antique Wine Company
- We provide guidance and advice on building your tailor made wine portfolio. We help a wide variety of clients from all over the world, with differing tastes, budgets and timescales.
- Unrivalled access to the world’s finest wines.
- Priority is placed on investing in wines that suit the taste of each client but which are also of premium quality.
- Monitoring and reporting on the performance of your investment portfolio.
- The assistance of a dedicated Client Account Manager on hand to provide expert advice and answer any queries you may have.
- Unrivalled access to a global network of Clients when liquidating part or all of your portfolio.
- No subscription, redemption or performance fees against your portfolio.
How does fine wine perform as an investment vehicle?
Since 2004, the Liv-ex 100 Index has tracked the trading pattern of the 100 most fought after fine wines in the world. At The Antique Wine Company we closely monitor the performance of the Index, ensuring maximum returns are delivered to our investment clients.With the Index having gained more than 25% year to date (as of September 2010) and over 30% year on year (and outpacing most other investment vehicles), not only do we have access to all of the component wines, we have access to the wines which will be making up the Fine Wine 100 for years to come.
Over the last 20 years, investing in fine wine has also out-performed a number of equity and fixed-income indices, including the FTSE 100. The graph below shows the performance of the Liv-ex 100 versus the FTSE 100 over a five year time period.
- Learn more about specific investment trends by reading our latest Investment Newsletter.
- Read Stephen Williams' article on wine investment in Tempus Pax magazine
If you’d like to know more about investing in wine, or would like us to help you build your portfolio, contact us via email.
Alternatively call us to speak to one of our client services staff:
- +44 (0) 20 3219 5588
- +1 800 827 7153 (toll free from USA)
- +852 2850 5572 (from Hong Kong)
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