With stable returns and resilience to other markets, fine wine is a strong performer in an investor’s portfolio. With low correlation to traditional equity markets, fine wine investment is soaring to new heights.
The current period of uncertainty has highlighted the turbulence of the financial markets. From the war in Ukraine, cost-of living crisis and rising inflation means that many investors are looking for alternatives than the traditional equities, such as hedge funds and collectables like art, classic cars, watches and of course, fine wine.
Whether you are an amateur collector looking to get more serious or are a new investor seeking to get started, our mission is to deliver exceptional investment experience, focused on generating strong, long-term performance that can play an valuable role in diversifying your investment portfolio.
Potential benefits of investing in fine wine
Fine wine has an inherent, physical value, which can act as a safe haven for investors during periods of economic uncertainty, recessionary or inflationary. High quality wine becomes more valuable as it matures.
With low correlation to traditional asset classes, fine wine can provide downside protection in market downturns and diversification in sources of return. Fine wine has shown a 0.1 – 0.2 correlation to major indices over the last 20 years.
Low Risk & Stable Returns
Low historical volatility helps de risk the overall investment portfolio and, with a stable return profile, improve risk adjusted returns. In the last 10 years, fine wine has seen a growth of 137% and the market has returned 7.3% on average per annum.
Ever growing demand
A finite supply of fine wine drives pricing on the secondary market and creates a compelling investment opportunity. Over time, these wines are purchased, collected and consumed so the supply decreases.
Wine is considered a wasting asset, generally qualifying for exemption from Capital Gains Tax in the UK.1
1Always consult your own professional tax expert for advice