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NOW OPEN - The Italian Syndicate

A portfolio of fine wines from Tuscany and Piedmont

Author

WineFi
November 14, 2024

Our latest fine wine syndicate allows you to gain exposure to an expertly-curated portfolio of investment-grade wines from Italy’s two premier wine regions – Tuscany and Piedmont – at a fraction of the cost of owning the total portfolio outright.

Our analysis shows that Piedmont has returned an impressive 12.6% CAGR over the past 10 years, whilst Tuscany has delivered 10.7% CAGR*.

Returns are exempt from Capital Gains Tax (CGT) for UK investors, and you can gain exposure from just £3,000. Fees are equivalent to just 2% per annum.

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Why Invest?

  • Uncorrelated, attractive risk-adjusted returns: Fine wine displays more attractive risk-adjusted returns than mainstream equity, bond and commodities bonds (including the S&P 500 and FTSE100).

  • CGT Exempt: For UK investors, returns are exempt from Capital Gains Tax (CGT). WineFi will provide a letter of recommendation on this theme that can be shared with an account or tax adviser.

  • Expanding Market Share: Demand for Italian fine wine has grown faster than any other wine investment region over the past 5-years, and now accounts for 21% of worldwide fine wine transactions.

  • Growing Momentum: Piedmont is increasingly viewed as ‘a new Burgundy’, with secondary market conditions similar to those that pre-empted the explosive growth in value seen in Burgundy in the 2010s.

  • Resilience: Historically, the max drawdown experienced by these regions has averaged just 3.8%.

  • Low Cost Exposure: Gain exposure from just £3,000 – a fraction of the cost of owning the individual wines outright.

  • Market Timing: The pullback in the wine markets from their October 2022 peak represents an opportunity for investors to take advantage of attractive valuations.

  • Sales Provisions: Individual wines within the wider portfolio are sold opportunistically on a rolling basis over the life of the syndicate, and proceeds are distributed pro rata to investors. In short, investors receive pay-outs over the lifetime of the syndicate.

Deal Overview

  • Permitted Investment: Select producers from Piedmont and Tuscany.

  • Risk Profile: Balanced

  • Anticipated Return: 11.8% net CAGR (74.7% absolute return)

  • Minimum Investment: £3,000

  • Expected Hold Period: 5 Years

  • Tax Incentives: Capital Gains Tax (CGT) Exempt for UK investors.

  • Expert: Peter Lunzer (£85m+ invested on behalf of clients).

  • Fees: 10% taken up front (equivalent to 2% AMC) covering storage and insurance. No further fees to be taken.

  • Structure: UK bare trust nominee, holding the assets on behalf of syndicate members

  • Deadline: December 2024 (exact date TBC).

  • Capital at risk: Fine wine is an unregulated asset class, and the value of investments may fall as well as rise. Please see Investment Presentation for a comprehensive risk overview.

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