How to start investing in wine?

Investing in fine wine brings a raft of benefits. To start with, the addition of a new asset such as fine wine to an investment portfolio provides important diversification, which mitigates risk and reduces levels of volatility – wine is a tax-free asset that performs consistently while providing portfolio protection in a way that traditional financial assets fail to offer.

 

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1. Decide on how much you would like to invest.

Cult Wines offers two services. An Execution Only Account, where the minimum investment is £10,000 or a Portfolio Management Account which is our flagship service, where the minimum investment is £25,000.

 

2. Decide on your investment objectives.

Why are you investing? Is it a diversification play? Or are you looking to put some money away in a safe, low volatile, long-term asset? Or perhaps you are looking for out-performance. Even ask yourself the question whether this is the right asset for you.

Depending on your investment term, risk tolerance and target returns we will build a bespoke portfolio based around your personal objectives.
 

 

3. Liaise with a portfolio manager.

Once you know your reasons for investing, we advise contacting a Cult Wines Portfolio Manager in order to build you an investment portfolio. The aim is to construct a portfolio drawing on your objectives within the framework of our investment objectives and policy set out by our Investment Committee.
 

 

4. Receive tailored investment proposal.

After consultation with a Portfolio Manager, you will receive an initial investment proposal based around your investment level, term and risk profile with all supporting analysis for each selected wine. This bespoke proposal is only available to Portfolio Management clients.

If you are investing through our execution only account, we have two benchmark wine investment portfolios at £10,000 and £20,000 capital investment. These portfolios are set by our centralised investment committee and represent a medium term (5 years), low to medium risk portfolio aimed at returning 10-12% per annum. These are available upon request, so please contact us to receive a copy of our current benchmark portfolios.

 

5. Complete account opening form.

Once you are happy with your proposal, in order for us to open your account you need to complete our account opening form, which includes an investor declaration as well as a signed investment management agreement. Once you have completed and sent back this form, we will send you an invoice for your initial investment and your account will be open once your funds are settled.

 

6. Access to online account.

You will then receive log-in details for your online account with Cult Wines in order to track the performance of your investment and historical record of your account. This can be accessed on mobile, tablet or desktop.

 

7. Assets allocated to investor at storage facility.

Once funds are settled, our logistics team will begin the process of allocating your purchased wines to your storage account. Once set-up, you will receive details of your reserve customer code and individual rotation numbers through the online portal or directly from your Portfolio Manager.

En Primeur wines (futures) will appear on the online account upon purchase but you won’t receive storage information until they are physically bottled and shipped to the warehouse.

 

How to Invest with Cult Wines

Download our quick guide to investing with us - Instant Download - Start your Wine Investment Journey
 

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Become a Cult Wines Client

If you would like to open an account with Cult Wines please complete our easy form via the link below
 

Open Your Account Here

Download our guide

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