Wine Portfolio Management

There are really two principal ways to invest in fine wine: wine investment funds and the construction of private wine investment portfolios.

At Cult Wines we offer a leading portfolio management service that allows our clients, no matter what their level of knowledge in fine wine, to profit from the burgeoning global fine wine investment market.

We hope that this page will answer some of the questions you might have about entering this market.

If you have a query that not covered here, feel free to call an advisor at our London office on +44 (0)207 1000 950.

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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. A network of established relationships with a range of UK merchants and Bordeaux negociants, ensures the availability of the very finest wines at optimum pricing levels.

Storage: In contrast to a number of fine wine investment companies whose clients are required to cover the full cost of storage, which can range from £15-25 per case per annum, Cult Wines’ portfolio service covers the full expense of storing your wine, in a privately segregated client account.

Insurance: All wines are completely covered at their current market value for the full duration of your investment.

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 weekly updates and regular reviews ensure that your portfolio is working its hardest.

Guaranteed sale of your wine: We are dedicated to selling your stock and we never charge a brokerage fee for this service.

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

 

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

We offer two fee models for our portfolio management service, which is either an upfront 15% fee which covers all costs and services, or an annual fee of 2% per annum with a 5% initial account set-up fee. The table below details the two fee models and all the services they cover. 

Up-Front Fee
Annual Fee
15%
0%
5%
2%
Portfolio Management All-Inclusive On-Going
Access to Stock
Stock Reinvestments
Investment Proposal
Online Account & Valuations
Storage Account Setup
Storage & Insurance
Dedicated Portfolio Manager
Buy & Sell Advice
Delivery & Handling
Condition Reports & Photos
Portfolio Sales & Reinvestments @ 0%




















Liquidation Fee  0% 2%

 

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 investment strategy. You can learn more about the Cult Wines team here.

 

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 weekly 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 advise clients that to get started you need to invest a minimum of £10,000. Once an account is open clients are free to top up and add to their portfolio without any restrictions.

In order to build a diverse, balanced portfolio, and to access stock with the greatest potential for growth we would recommend an investment of £25,000 - £50,000.

 

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. There are a number of regions investors can have exposure to. Whilst Bordeaux and Burgundy represent a significant proportion of the wine investment market, Cult Wines also trade in wines from Italy, Champagne, Rhone, Spain, U.S.A, Australia, Loire, Port & Chile.

 

What Wines are likely to produce the best returns?

A key element in any portfolio which is being structured for investment purposes is diversification, the objective is to ensure wines are included with strong potential growth over the short, medium and long-term, whilst minimising position risk with a sufficient spread across estates, regions and vintages. Proposals will therefore typically result in the following representative portfolio composition across a client's total holdings. 

 Typical Portfolio Representation

 

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

Generally, we advise clients 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. Cult Wines do not levy any early redemption or cancellation charges at any stage.

 

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

Historically fine wine has returned 12.9% per annum over a typical five-year term (Liv-ex data since 1988). Our team of portfolio managers are targeted with outperforming the leading industry benchmark and have typically done this since inception. You can download our latest Quarterly Investment Report which details our most recent performance figures here

 

Who holds my wines? Where are they kept?

All our wine is stored in private client accounts at Liv-Ex under each client's name and beneficial ownership. We receive datafeeds from the exchange and storage facility which enables us to display client holdings in our private client portal on our website; this allows clients to track stock holdings remotely and if required we can provide photographs direct from the warehouse of all stock. 

The Liv-Ex storage chamber at London City Bond is the most sophisticated, static temperature controlled facility within the government bonded warehouse. The chamber is fully equipped with CCTV cameras as well as photo booths and professional photographic equipment for condition checks and verification. All client stock is given an SIB passport which is recognised within the fine wine trade and ensures that the wines have been checked for provenance and condition, Cult Wines only accept ex Chateau or SIB stock as a matter of policy. 

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

Furthermore, if you would like your wine to be held outside the UK, we can make arrangements on your behalf through our current international logistics partners - Crown Wine Cellars in Hong Kong and Singapore Wine Valut in Singapore. 

Learn more about storing wines in bond on our Storage and Provenance page. 

 

How ‘tax-efficient’ is fine wine really?

Client wine reserves stored in bond are VAT-exempt as they are considered 'in-transit'. If you decide to remove your wines from a bonded warehouse they will become liable for VAT and Excise Duty. 

We always recommend discussing new investments with your tax advisor to ensure you can experience the full benefit from investing in Fine Wine. 

Generally, fine wine is considered a 'wasting asset' and thus is exempt from Capital Gains Tax (CGT). For more information on fine wine, CGT and Inheritance Tax, please visit our Tax Considerations page. 

 

Download our guide

This essential Fine Wine Investment Guide will take you through the complete, transparent and informative journey of Wine Investment.