wineMay 15 2017

Strengthen financial planning with fine wine

Supported by
Vin-X
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Supported by
Vin-X
Strengthen financial planning with fine wine

“Investment in fine wine is all about performance – I believe in it so much I joined the team in 2011.

"With an annual growth rate of 14% in the last 15 years, you should too.” Austin Healey, Leicester, England, British Lion.

•    In the last 12 months to 30th April 2017 the fine wine market (Liv-ex 100) grew over 19%.

•    Both the Barclays Wealth and Knight Frank annual wealth reports clearly indicate “significant” investment in fine wine by High Net Worth Investors.

•    Liv-ex, the “stock” exchange equivalent of the fine wine market, strengthens liquidity – forgive the pun!

•    Vin-X launches its specialist fine wine investment platform for professional advisers and their clients.

Financial planners are increasingly adopting investment strategies to include tangible, alternative assets such as fine wine, with proven performance history and the ability to diversify and strengthen portfolios. 

Martin Pruszynski, Head of Procurement at Vin-X, says: “These investments are becoming increasingly attractive to global investors with growing demand from the UK, China, USA and other developing markets. It is a fact that the fine wine market has consistently delivered long-term value to investors.”

Indeed, Liv-ex reports that its key index, the Liv-ex 100, which measures the one hundred most actively traded fine wines on the exchange, has recorded 14% annual growth over the last 15 years. In 2016 the index rose more than 25%, outperforming the FTSE 100, S&P 500, gold and other assets. 

Pruszynski adds: "Even though the UK and American stock markets have reached record highs, Liv-ex reported in early May that the 12 months to 30th April 2017 saw the Liv-ex 100 index growth at 19.8% outperforming the FTSE and the S&P500 by nearly 5%.

"Fine wine even outstripped gold, often seen as a safe haven asset, in the period by a notable 10%. In fact fine wine as an asset class has outperformed all the major indices over the last 10, 20 and 30 years!”

The economic fact is that every year there is an ‘absolute’ finite supply of investment-grade wine created by around thirty producers worldwide.

Lafite Rothschild is one of the most sought after luxury brands in the world and has one of the highest production levels in the market, but even they only produce approximately 15,000 cases a year to satisfy discerning drinkers and collectors.  

Growing international demand and severely constrained supply combine to give a lucrative investment, helped by an active secondary market and a product whose supply is constantly diminishing as corks are pulled.

In this virtuous circle rare vintage wines only get scarcer and, as a consequence, more valuable over time.

So as an asset what does fine wine have to offer?

Investor benefits: 

•    Performance: a stable investment, whose performance is not directly correlated with volatile financial markets with an impressive track record of delivering strong long term growth that outperforms other asset classes.

•    Tax advantage: profits on fine wine sales are generally exempt from Capital Gains Tax, subject to personal circumstances.

•    The ability to hedge inflation and currency dynamics.

•    A tangible alternative asset with inherent physical value.

•    Diversification tool: a stable, low risk alternative asset which delivers strong long term growth potential.

Investors should be aware of risks.

As with all investments, it is not always plain sailing and investors should always look at:

•    the provenance of the wine - where is it sourced from? 

•    condition – has it been stored to protect quality?

•    is the price right? 

Vin-X’s service guarantee fulfills all of the above within its Advisers Fine Wine Investment Platform Vin-X Limited (www.vin-x.com).

Vin-X is a market-leading specialist in fine wine investment, managing over £20m worth of fine wine for more than 2,000 UK and international clients.

Its team of professionals with backgrounds in the wine market, financial services, events and leisure management, provide a portfolio management service focused on investment-grade wine.

The company’s analysts’ wine portfolio management strategy ensures that rewarding fine wine collections are created for investors in line with their investment goals. Historically, its portfolio management strategy has outperformed market trends. 

Vin-X offers a comprehensive solution for investors in fine wine delivering: 

•    supply of the world’s finest investment-grade wine selected for growth potential

•    key market information and sector research 

•    in-bond storage and insurance 

•    market leading systems and controls which have been independently verified and designed to protect investors.

•    specialist events team which creates exclusive fine wine experiences.

Strengthen your multi-asset management offering with the Vin-X Fine Wine Investment Platform

Vin-X has developed a comprehensive Fine Wine Investment Platform for Advisers and Wealth Managers to actively aid their customers to safely get involved with this exciting asset class. Advisers will receive market education, access to leading operating systems and supply of the finest wines in the world. 

“Investors should have the opportunity to diversify and strengthen their portfolios with fine wine. Advisers finally have a partner to provide a solution to deliver just that”. Austin Healey, Non-Executive Director, Vin-X Limited

For further information on the Vin-X Advisers Fine Wine Investment Platform please contact: Katie Souter. Tel: 0203 384 2261 Email: enquiries@vin-x.com or visit VIN-X LIMITED