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Wine Portfolio Management

Wine Portfolio Management

At Cult Wines we specialise in offering our clients a complete wine portfolio management service that allows our clients, no matter what their level of knowledge in fine wine, to benefit from the burgeoning global fine wine investment market. We aim to make investing in fine wine as simple and as profitable as possible for out clients.

Advantage of using Cult Wines:

  • Access to experts in fine wine investing
  • Huge choice of global investment grade wines
  • Exceptional prices
  • Up to date wine market analysis and stock recommendations
  • One-stop shop covering stock selection, insurance, storage & sales

 

What is included in the Cult Wines Portfolio Management Service?

Our service includes:

Stock selection: Our team of highly-trained portfolio managers adhere to a stringent stock selection process ensuring you have access to the very best investment grade wines. Our network of established relationships with a range of UK, French, Spanish and Italian vineyards and merchants ensures you have access to the very finest wines at exceptional prices.

Storage: Cult Wines portfolio service covers the full expense of storing your wine, in your own privately segregated client account at the London City Bond warehouse, a world-leading wine storage facility.

Insurance: All wines are completely covered at their current market value. You can be safe in the knowledge that you retain full ownership and your wine is fully insured at the latest replacement value.

Handling and administration costs: No hidden administrative or servicing costs, ensuring transparency and peace of mind for our clients.

Portfolio tailoring: We structure portfolios to match the individual investment objectives of each of our clients.

Investment strategy: Our team of portfolio managers have a wealth of experience in the fine wine investment market. Your appointed portfolio manager has access to the most up-to-date market data and analysis available, through our dedicated and highly specialised research team, and is therefore able to advise you on the best possible investment strategy. These strategies are revised on a regular basis as the market develops and regular updates and reviews ensure that your portfolio is working its hardest.

Guaranteed sale of your wine: Should you choose to sell your wines through Cult Wines, we will sell your stock to make exiting your investment as simple and as profitable as possible.

Online Management: Clients benefit from the ability to access and view their wine portfolio online, tracking its growth whilst viewing current valuations and reading the latest market reports.

 

How much will this service cost me? How is it applied?

Cult Wines charges a portfolio management fee of 15% with each new purchase of stock. This is an all-inclusive one-off fee which covers stock selection, storage, insurance, handling and access to your wine portfolio online, all for up to 5 years. You will not be charged any on-going fees.

Should you decide to sell your stock through Cult Wines, a selling fee of 2.5% is applied.

 

Will I have a dedicated portfolio manager?

Each of our clients is assigned their own dedicated portfolio manager who will have sole overview of their portfolio and thus be able to construct a tailored wine investment strategy.

 

What level of contact can I expect from my portfolio manager?

We know how much our clients value maintaining open and transparent investor-manager relationships.

This is why we keep all our clients ‘in the loop’ with newsletters and market updates via email. Your portfolio manager will also maintain regular contact, through regular reviews on the state of your holdings.

Clients also benefit from the ability to access and view their wine portfolio online. Through our online portal you can request a review, place a sale order or read the latest market reports.

 

What is the minimum investment?

There is no minimum investment level required to use our services, and we can tailor portfolios to suit almost any level of investment. However, we do recommend $5,000-$10,000 as the optimum starting point. This will allow you to build a diverse, balanced portfolio, and give you access stock with the greatest potential for growth.

 

What wines will I be investing in?

Your dedicated portfolio manager will discuss your available investment level and will propose a portfolio comprised of wines designed to match your investment objectives. The majority of stock held by our clients is from the investment grade top chateaux of Bordeaux, wine that remains the backbone of this market (86% of trade on Liv-ex by volume, as of 2012). Your manager will also explore options for portfolio diversification with you, with investment grade wines from Burgundy and Italy. We recommend building a wine portfolio up over a period of time, taking advantage of favourable market conditions and opportunities as they arise.

 

Is there a minimum period I must hold the wines for?

Generally, we suggest to investors to set a minimum 3-5 year horizon for their portfolios in order to benefit from a typical market cycle, with an optimum term of 5-10 years.

However, should you wish to sell your wines at any stage, we will liquidate stock upon request.

 

What are the likely returns on a typical Cult Wines investment portfolio?

Historically fine wine has returned 12-15% per annum over a typical five-year term (Liv-ex data since 1988). Our team of portfolio managers are targeted with outperforming this average market performance, with 15%+ annual growth over the same term our primary objective.

 

Who holds my wines? Where are they kept?

Client reserves are held at London City Bond, a bonded-warehouse based in Tilbury, Essex, UK.

Storing wines in a bonded warehouse such as London City Bond ensures perfect provenance, allowing your wines to achieve the best possible returns when it comes to selling stock. Wines stored in this way are VAT-exempt.

London City Bond is the largest and oldest bonded warehouse in the UK, storing wines in a managed optimum climate where temperature and humidity are regulated to keep wines in perfect condition. You will receive documentation certifying that you are the sole owner of the wines and if you would like to see the wine, we can arrange condition checks and photos or a personal visit so that you can check the stock onsite yourself.

If you already have your own storage account or would like to arrange an alternative storage solution, we will be happy to make the necessary arrangements.

For more information about storing wines in bond, please visit our Storage and Provenance page.

 

Taxation

Client wine reserves stored in bond are VAT-exempt and free of any excise duties such as GST and import tax as they are considered ‘in-transit’. Clients who decide to remove wines from the bonded warehouse and have them shipped to Australia will become liable for GST, import duties and any other applicable taxes.

In addition to the above there are other potential CGT and tax advantages when collecting or investing in a fine wine portfolio. As everyone’s tax situation is different, we always recommend discussing new investment ideas with your tax adviser to ensure you can benefit fully from fine wine.

 

We hope that this page will answer some of the questions you might have about entering this exciting investment market. If you have a query that not covered here please feel free to speak with one of our advisors in our Melbourne office on

Tel: +61 (0)3 90345255 or email australia@cultwinesltd.com

 

Get your wine investment journey underway today by creating your own free, no obligation account with Cult Wines and receive your own personal login and exclusive access to Cult Wines client investment opportunities. 

Open Free Account click here!