AWC Wine Cap
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AWC Wine Cap is a division within the AWC Group which specialises solely
in fine wine investment. This provides AWC’s clients with focused advice and
a suite of dedicated services. In recent times, the performance of fine wine
as an investable commodity has proven to be particularly impressive.
Historically, fine wine has enjoyed rising values, driven by consumption,
during times of prosperity and, in times of economic adversity, it is viewed as
a safe haven for capital. AWC Wine Cap specializes in customised portfolios
for private and institutional investors.
What makes fine wine a sound investment?
Classed as an alternative investment, fine wine
should be considered as a vital component of any
diversified portfolio.
(read more)
As an asset class fine wine
is unique. It is a tangible and consumable
investment that benefits from a unique supply and
demand environment.
Strict laws govern the
production of the majority of investment grade
wines so there is only ever a finite amount of
each vintage produced. Given the burgeoning
appetite for fine wine around the globe the demand
easily outstrips supply and the price increases.
At this time wine as an investment is not subject
to capital gains tax as it is classed as a wasting
asset. Couple this with the ability to buy, sell
and store wine in bond and the results are tax
free returns. Please note that The Antique Wine
Company advises you to consult an independent
financial advisor or accountant for advice on the
matter.
Speculation and Current Trends
Several obstacles have prevented fine wine from
becoming part of traditional investment markets.
These barriers have also created investment
advantages for interested parties:
- The policy of the châteaux and distributors is to
set aside allocations for loyal customers in
various markets around the world, so it is
difficult for speculative investors to invest
heavily.
- Fine wine is rarely leveraged or funded by
debt, so forced-sale disposals rarely happen.
- Widespread growth in the appreciation of
fine wine, and increasing consumption in emerging
markets, has generally been sustained through
changing economic cycles.
- During times of economic adversity, some
speculative capital migrates from financial
investment markets into tangible commodities,
including fine wine. This usually compensates for
the inevitable drop in demand for consumption—the
result being a levelling of prices, rather than a
crash.
Advantages of Fine Wine Investment with AWC
- We provide guidance and advice on building your
tailor made wine portfolio. We help a wide variety
of clients from all over the world, with differing
tastes, budgets and timescales.
- Unrivalled
access to the world’s finest wines.
- Priority is
placed on investing in wines that suit the taste
of each client but which are also of premium
quality.
- Monitoring and reporting on the
performance of your investment portfolio.
- The
assistance of a dedicated Client Account Manager
on hand to provide expert advice and answer any
queries you may have.
- Unrivalled access to a
global network of Clients when liquidating part or
all of your portfolio.
- No subscription,
redemption or performance fees against your
portfolio.
How does fine wine perform as an
investment vehicle?
Since 2004, the Liv-ex 100
Index has tracked the trading pattern of the 100
most fought after fine wines in the world. At AWC we closely monitor the
performance of the Index, ensuring maximum returns
are delivered to our investment clients.
With the
Index having gained more than 25% year to date (as
of September 2010) and over 30% year on year (and
outpacing most other investment vehicles), not
only do we have access to all of the component
wines, we have access to the wines which will be
making up the Fine Wine 100 for years to come.
Over the last 20 years, investing in fine wine has
also out-performed a number of equity and
fixed-income indices, including the FTSE 100. The
graph below shows the performance of the Liv-ex
100 versus the FTSE 100 over a five year time
period.
Remember that, as with any investment, the value
of wines could go down as well as up. But if that
happens, at least you can drink your investment!
Contact Us about Investing In Wine
If you’d like to know more about investing in wine, or would like us to
help you build your portfolio, contact us via email.
Alternatively call us
to speak to one of our client services
staff:
- +44 (0) 20 3219 5588
- +1 800 827 7153 (toll free from USA)
- +852 2850 5572 (from Hong Kong)
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