Why The Wine Investment Fund?

Because it has a clear and articulated investment philosophy operated by skilled and experienced investment managers. The Fund’s assets are also independently and fairly priced and it operates with a high degree of security.

Investment philosophy
 

The key aspects of The Wine Investments Fund’s proprietary investment philosophy are:

  • Investment almost entirely in Bordeaux: these wines have the most comprehensive track record, the greatest liquidity and the strongest brands;
  • The Wine Investment Fund strips away layers of risk (from what is already a lower risk investment): the Fund does not purchase en primeur, when wine prices can be more volatile, or wines nearing the end of their drinking window, and avoids non-standard case sizes;

  • The Wine Investment Fund uses their Price Step TheoryTM as the framework, together with a relative value analytical model, to guide their buying and selling decisions.

     

Investment managers
 

The Wine Investment Fund has been operating since 2003, being the longest established publically offered wine fund. Their paid out returns since this date average 14.8% annualised after all fees and expenses. The Wine Investment Fund has a unique blend of analytical expertise and market knowledge.

This allows The Wine Investment Fund to exploit pricing anomalies in the market by buying from and selling to a wide range of contacts both in the UK, Europe and the Far East; as they are completely independent from any merchants or producers, they are always incentivised to obtain the best prices achievable. The Wine Investment Fund also undertakes a rigorous analysis of wine prices, trends and future potential in a way that no other market participant does.

 

Independence, transparency and security
 

As well as The Wine Investment Fund´s independence, the Fund benefits from independent third-party pricing, provided by Liv-ex, the fine wine exchange, based on their transparent trading screens. Using the Liv-ex ‘mid price’ for valuing the Fund’s wine portfolios means that they are consistently fairly priced.

Security is provided by the holding of all The Wine Investment Fund´s stock in UK government bonded warehousing. These are licensed and policed by the UK Customs authority and neither tax nor duty is payable on The Wine Investment Fund´s holdings (so more is deployed in growth generating assets rather than costs). Storage conditions are suitable for fine wine and each case is inspected when the Fund takes ownership of the wine. The warehouse’s systems, under observation from UK Customs authority, ensure that the Fund’s wine is easily identifiable.