PORTFOLIO MANAGEMENT

With plenty of demonstrable success, Clos Fine Wine is the perfect partner to explore diversifying into Fine Wine with, to create a robust and agile portfolio, all managed by your personal broker.

From favourable tax breaks to inflation resilience and stability in uncertain times, fine wine is so much more than a ‘passion investment’. at clos our portfolio clients are the lifeblood of what we do, as we strive to make their capital work for them.

At a time of huge financial stresses and the onward march of inflation, canny investors have continued to find value in so-called alternative investments. The success of assets like watches, fine art, classic cars and whisky ebbs and flows from year to year, but it is the remarkable stability of Fine Wine which makes it worthy of serious inspection.

At Clos Fine Wine we know the strength of a diversified portfolio of wines which as physical assets act as a hedge against both risk and inflation. In uncertain times, more recently global pandemic and the war in Ukraine, the key Fine Wine markets have remained buoyant, retaining value even as other markets tumble.

 

Not only does Fine Wine have a consistently low correlation to equity markets, burnishing its credentials as a true investment diversifier, but it is also driven by the notion of inverse supply, that over time as bottles from a sought after producer are drunk or discarded, the wine improves with age and becomes ever more desirable, even as stocks dwindle, pushing up value. Inverse supply for Fine Wine is matched by no other physical asset market (discounting rare single cases of whisky), making it one of the key drivers for portfolio success.

 

Wine has long been viewed by HMRC as a ‘wasting chattel’, rather like a thoroughbred racehorse in that there is inherent risk across the life of the asset, and so it is currently viewed as Capital Gains Tax exempt, though a strict framework applies for this and investors should always consult the views of a tax specialist.

 

Should you be interested in investing in Fine Wine then our approach is different to all other competitors, rather than asking for your capital and telling you what you’ll get in return, we consult on your investment aims (length off investment, appetite for risk etc) and produce a detailed, data-driven proposal. Only once you are satisfied with and clear about our rationale do we go about securing a diverse & robust portfolio of wines for you.

OUR 12.5% MANAGEMENT FEE COVERS

  • Valuations of your portfolio are generated independently by Liv-Ex, and sent every quarter, so that you can see how your portfolio is performing.

  • Sent every twelve months, your report will cover the performance of your holding across the year and touches on the various market influences on value whilst looking ahead to threats and opportunities for the following year.

  • We pride ourselves on having our finger on the Fine Wine world’s pulse, especially when it comes to investment. Our market reports share data and tips for you to digest: perhaps a Château is about to release a limited edition bottle of its 100 point wine, or perhaps an estate is about to be promoted in the classification system. Whatever the news, we’ll keep you in the know.

  • All portfolio wines are stored at Vine International, the storage arm of Liv-Ex, the global marketplace for Fine Wine. All wines are stored and insured for five years to full replacement value, which includes rigorous condition and provenance checks.

  • Once a portfolio is covered by our management fee, any wines within it can be liquidated at any point without the need to pay commission or a fee for performance. Perhaps you need to free up capital for a family holiday? We can help you do that with minimal fuss, and zero fees.

  • Dominic oversees every stage of your portfolio, from your first enquiry to portfolio execution. We’re proud that the overwhelming majority of Dominic’s clients have increased their investments over the lifespan of their initial portfolio, trusting his advice and management. So, no automated emails here but a hotline, any time of day, to your personal portfolio manager.

When we secure wines for a holding, the only fee we charge is 12.5% up front for portfolio management, which covers a portfolio for five years (equivalent to 2.5% per annum). Find out more about what is covered in the fee below:

Over the past five years, average returns have been 32% across all portfolios that Dominic manages, which encompass a wide range of capital amounts, risk levels and approaches.

Start your portfolio journey today by contacting us for a call or meeting, or to ask for a portfolio proposal based on your investment aims.