The Vinum Fine Wine Fund PCC Limited is a Class B Guernsey based investment fund offering the opportunity for tax efficient fund growth.
Investment Objective
The fund aims to achieve capital appreciation over the medium to long term by investing in a diversified portfolio of rare, fine Bordeaux wines. Investment in the fund should be regarded as being for a minimum of three years. The Vinum Fine Wine Fund is aiming for a 15-18% return this year.
Unique
The fund is the only one to offer investment in wine for SIPP and SSAS monies. Two years ago, it appeared likely that the permissible asset classes for these types of pension funds would be widened, however this did not happen. For the first time these pension funds now have a vehicle for investing in fine wine with the potential for long term gains. This offers crucial diversification into a non correlated asset class.
Performance
Historically, wine has demonstrated a long term consistent return on investment. Evidence of this arises from four sources:
- ‘The Successful Investor', authored by Robin Duthy in 1988, resulted in the Vintage Claret Index. This demonstrated an average annual compound growth rate between 1950 and 1985 of 15.2%.
- ‘Wine Investment for Portfolio Diversification' (written by Manesh Kumar in 2005) delivered the Fine Wine 50 Index. This demonstrated an average annual compound growth rate of 12.3% from 1983 to 2002.
- The most recent performance data is provided by Liv-ex. The Liv-ex 100 average annual compound growth rate was 15.3% between 2003 and April 2007.
- The Fund Managers concentrated and closely managed wine selection should ensure performance in excess of this established data.
Opportunity
The fund is the first retail investor fund able to capitalise on the proven investment returns from fine, rare Bordeaux wine. The fund promises excellent, substantiated long term performance gains, limited production and supply and an established market with an internationally recognised evaluation system for wines and their assessment.
