WineFi Weekly: The Italian Syndicate -- Launching Soon!

Introduction

We are proud to announce that our next syndicated opportunity is a portfolio of fine wine from Tuscany and Piedmont - which will go live later this week!

As we prepare to launch The Italian Syndicate, we're diving into why Italy’s fine wine market presents a unique and lucrative opportunity for investors.

One of our core beliefs at WineFi is that our investors should have access to the same standard of information as you would see in traditional asset classes. This allows investors to make informed, data-driven decisions.

The two leading investment regions of Italy have proven their worth on the investment-grade wine stage, standing toe-to-toe with Burgundy and Champagne in both growth and resilience. Below, we outline these key regions, market drivers, and strategic insights that shape this exciting portfolio.

Click here to register your interest in The Italian Syndicate

A Decade of Growth and Stability

Market Growth: Italy's share in the market has consistently grown over the past decade, now representing 21% of market trade by volume. With regions like Piedmont achieving the third-highest returns in the last 20 years, investors can benefit from both the established prestige of older labels and the new growth from emerging vineyards.

Performance at a Glance:

To accurately represent expected performance for wines from these regions we filter the investable world down to only wines that we would include in the syndicate.

A pre-requisite for inclusion is that the label must fall into the top 10% of WineFi Investment Scores (WIS) for the region. See below for an insight into the WIS.

• Piedmont: 229% total returns over the last decade, showcasing strong resilience and growth potential.

• Tuscany: 177% total returns over the last decade, with low volatility and strong liquidity. Tuscany has the lowest volatility of any wine region over the last decade.

Piedmont: ‘Italy's Burgundy’ – Upside Potential and Exciting Producers

Piedmont wines are showing a similar trend to the beginnings of the ‘Burgundy Boom’, with established labels gaining value and newer vineyards emerging as premium options. This region provides investors with opportunities to enter early in a wine’s lifecycle, and has shown resilience amongst a broader market downturn.

Key Investment Insights:

• Entry Strategy: Invest in wines aged 4-15 years, ideally before or early in the drinking window.

• Exit Strategy: Aim to exit before the wine's expiration period, as top-performing Piedmont wines are generally exited 8.8 years before expiration.

• Price Points: Opportunities are emerging in wines priced between £600 and £2000, with the best recent performance above £4800.

Tuscany: Liquidity and Stability

Tuscany’s secondary market liquidity and lower volatility make it an attractive component of any diversified wine portfolio. Tuscany is the driving force behind Italy’s rise to becoming the clear 2nd most traded region after Bordeaux.

Strategic Recommendations:

• Entry Timing: Focus on wines with a competitive price per point relative to label averages rather than specific vintages.

• Exit Timing: Tuscany wines generally perform well between 7-20 years of age, with optimal exits before reaching 30 years.

• Investment Focus: Super Tuscans from Bolgheri and premium Brunellos offer consistent growth. The 2016 Soldera, a legendary vintage, has seen 17% CAGR over the last 10 years.

  

The Italian Syndicate Advantage: Portfolio Composition and Target Returns

The Italian Syndicate will balance the resilience of Piedmont with the stability of Tuscany, providing a diversified and high-performing portfolio with an expected CAGR of 13.8% and a potential max drawdown as low as 3.8%.

Composition & Risk Management:

• Balanced Portfolio: Tuscany brings low volatility; Piedmont offers higher returns. Together, they provide an ideal risk-return balance.

• Vintage and Label Selection: Investments are focused on top-decile wines from premium producers, selected for both growth and durability.

Click here to register your interest in The Italian Syndicate