Whether you’re an investor will look to develop a diversified investment portfolio, or simply looking to put money away in a safe, low-risk market, investing in fine wine provides stable protection that mitigates risk and reduces levels of volatility.
How to Get Started Investing in Fine Wine
As with all investments, some research is necessary and working with an expert partner should help you to create a rewarding fine wine portfolio over time. As with most tangible alternative assets, fine wine should be considered as a medium to long-term investment to optimise performance. Here’s how to get started:
1. Decide on how much you wish to invest in Fine Wine
As fine wine delivers stronger returns than most other assets over the longer-term, you will need to decide how much capital you wish to invest on that basis. In order to create a robust and rewarding fine wine portfolio, built around blue-chip Bordeaux investment wines, we would recommend a starting point of at least £10,000.
2. Decide on your investment term
Typically we would advise that you consider your fine wine investment as a medium to long-term hold and to plan to build a portfolio to then monitor its performance over an average 5 years to capitalise on market cycles. However, certain investment-grade wines have the rare capacity to age and improve over many years and there may be significant reasons to hold your wine investment for 10 years or more to get the best possible returns.
3. Be guided by an expert
Working with a fine wine investment specialist will ensure that you clearly define your fine wine investment goals and build a portfolio that aims to meet them. We will ensure that we select the right wines to meet your budget and investment term requirements and keep you fully informed on portfolio performance over the period. We will ensure that you continue to enhance overall growth over time with the right additions to your wine portfolio and then to manage the best possible exit strategy in the future.
4. Selecting the wine for your portfolio
Our Portfolio Managers will carefully consult with you to determine your investment budget and term, your attitude to risk to determine the diversification level of your portfolio and any special fine wine interests you may wish to incorporate in your portfolio. We will then provide you with information on recommended wines.
5. Storage and Insurance
We will arrange a bonded storage account for you at London City Bond, the UK’s leading Tax Storage specialist, to ensure the optimum tax treatment and storage conditions for your wine investment to protect its ongoing quality and future value. We will also arrange insurance for your wine at full replacement value.
6. Stay informed
Your Portfolio Manager will keep you updated on the ongoing performance of your wine investment with periodic valuations. You will also receive regular Newsletters and special Market reports which include information, analysis and news, which may affect the value of your wine and point to opportunities to enhance your portfolio performance.
7. Time your exit
When you are approaching the initially agreed timing for you to look at the possible sale of your wine we will look at its performance and the prevailing market conditions and determine the best time to exit your wine investment. Should conditions be very positive prior to the expected term end, your Portfolio Manager may well offer the opportunity to take profits, and possibly re-invest if suitable. We would also remind you that, as in all investments, prices can go down as well as up and there is no guarantee at any time that a certain price may be achieved. You can decide, at any time, that you would like to sell your wine and we will help you to do this and endeavour to achieve the best possible price in the market.
8. Contact us