Why Wine?
Capital At Risk
Why invest in fine wine?
Fine wine has historically offered investors diversification from mainstream asset classes and attractive risk-adjusted returns. In many jurisdictions, including the UK, fine wine can also be a tax-efficient investment. As a professional asset manager, our role at WineFi is to maximise your chances of outperforming the wider fine wine markets.
Market Timing
Capture the Market Recovery
The fine wine markets are cyclical. After reaching all time highs in October 2022, the fine wine markets spent 34 months in decline. With the market having stabilised and entered the early stages of recovery, there is a strong case for investors to re-enter the market and capture the upside.
A Unique Supply and Demand Dynamic
The key to fine wine’s performance as an asset class is simple.
Inherent Scarcity +
Only a finite number of investment-grade wines can be produced by each vineyard per year, the quality of which varies from vintage-to-vintage.
Declining Supply +
Over time, bottles are consumed, damaged or improperly stored, becoming increasingly scarce over time.
Increasing Demand =
As the wine improves with age and global wealth continues to grow, demand for these sought after wines increases.
Higher Prices
This combination of ever increasing scarcity and growing demand helps to drive prices for the most sought-after wines higher over time.
Absolute Returns
Beat the Markets
Fine wine has historically compared favourably to mainstream equity and bond indices. The Liv-ex 1000, the broadest measure of the wine markets, has returned 300%+ since inception.
To find out how WineFi seeks to outperform the Liv-ex benchmarks, see our Investment Process.
Diversification
Low Correlation
Fine wine displays a historically low correlation to traditional asset classes, especially when assets are selected carefully, making it a valuable diversifier within a wider portfolio.
Contact us
We are an asset manager, not a wine merchant.
WineFi offers both private portfolios and access to diversified collections of fine wine via our syndicates. We leverage market-leading quantitative analysis and the deep expertise of our expert investment committee to build and manage portfolios from source to sale.
Stability
Low Volatility
Fine wine's return profile is accompanied by lower volatility than many mainstream asset classes. This is a feature of the relative illiquidity of the asset class, but can also be an advantage in volatile markets.
Capital Gains Tax (CGT) Exemptions
Tax Efficiency (UK)
Wine held within WineFi portfolios qualify as exempt from Capital Gains Tax (CGT) for UK-resident investors. Independent tax counsel has provided a formal opinion confirming this treatment, which is made available to investors for reference.
Ready to make fine wine a part of your portfolio?
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Capital is at risk. Wine values can go down as well as up, and investments may not perform as expected. Returns may vary. You should not invest more than you can afford to lose. WineFi is not authorised by the Financial Conduct Authority. Investments are not regulated and you will have no access to the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS). Past performance and forecasts are not reliable indicators of future results and should not be relied on. Forecasts are based on WineFi’s own internal calculations and opinions and may change. Investments are illiquid. Once invested, you are committed for the full term. Tax treatment depends on individual circumstances and may change.
You are advised to obtain appropriate tax or investment advice where necessary.
WineFi is a trading name of WineFi Management Limited. Registered in England and Wales with registration number: 14864655 and whose registered office is at 5th Floor, 167-169 Great Portland Street, London, United Kingdom, W1W 5PF.