Wine Investment

Live-Ex Wine is increasingly being used as a tool for investment, and since 2005 the number of professionally managed wine funds emerging onto the market has increased significantly - not good news for the enthusiastic consumer but ideal for the investor! Wine is regarded as a chattel in the UK and is not currently subject to Capital Gain Tax.

Wine investment is a very specialised area of the market, traditionally focused around four to five dozen wines, predominately Bordeaux. As prices of these wines have increased so much over the last few years, the market has started to broaden and away from the choicest Bordeaux Chateaux and into areas other than Bordeaux. As with all investments, picking the right stocks at the right time is the key to success.

The key points investors tend to be attracted to include:

  • Tax efficiency as there is no CGT on wine sales.
  • Diversification of an investment portfolio.
  • A tangible asset physically sitting in a secured environment as a named asset.
  • A stable long-term investment with increasingly global demand and consumption.
  • Relatively liquid - excuse the pun!
  • An interesting investment in an increasingly technical and mundane investment environment

We have advised clients individually on wine investment portfolios and strategies, particularly since 2005, and Alex has advised both Singapore and Hong Kong based investment companies whose clients are private investors. It is important to note that wine investment is not regulated by the FSA and, as with all investments, the value of the portfolio is not always guaranteed to rise. If this is of interest, Alex would be very happy to discuss this with you on an individual basis.