Our 'Outside the box' investment service
From time to time, people ask us ‘where’s the best place to invest at the moment?’. Of course this can’t be answered accurately without getting to know that individuals personal and financial circumstances, but quite often their enquiry refers to wanting to do something ‘different’ with their money.
They get bored, or dare I say sceptical with investment in stocks and shares/ISA’s/pensions etc, and look for something else which may stoke their fires a little more!
With this in mind, we spent a fair amount of 2012 and 2013 looking at different ways to invest our client’s money, and set off to carry out the diligence on a number of opportunities. These activities ranged from collections such as stamps, to works of art, classic cars and fine wine just to mention the more realistic and transparent ways of making money.
I believe that the core mainstay of anyone’s investments should include a scattering of ISA’s, pensions and property holdings to name 3 key areas. However, I also feel there is a place for specifically chosen alternative investments.
Therefore, at the beginning of 2013 we started a Fine wine investment service. After talking to various wine merchants and brokers, we chose one broker to introduce clients to in order for them to receive advice from, and buy portfolios of fine wine. I will usually advise clients on seperating 5-10% of their investable capital towards investing in fine wine. Please remember that this is not a regulated activity, and we are introducing the deal rather than advising on it. Therefore, the financial compensation rules will not apply on this particular asset class.
Here are the reasons you might choose to invest in wine and some tips on general recommended elements to these investments;
- Expert advice and guidance from our appointed broker where they look to recommend a portfolio of wines rather than only one type, many of which span a number of vintage years
- Contrary to popular belief it is is a low risk asset class with only a 3% standard deviation (being a standard measurement term for risk - compared to 8%+ on share related investments)
- Great for alternative retirement income planning
- The longer you hold this asset class the greater the investment returns due to the wine maturing in bottle and supply diminishing over time (drinkers take over eventually!)
- Excellent historic returns, from 5.9% p/a DOWN side since the late eighties, to an average of 12.9% p/a, up to 18% p/a being typical of some of the vintage wine holdings.
- Fine wine is currently treated as a 'wasting asset' so is capital gains tax free. Find out more in our "Investing in Fine Wine Video Clip"
We arrange wine tasting sessions throughout the year with our appointed broker, so if you would like to take part in one of these, please contact us to let us know.