For investors
THE AIM OF THE FUND’S OVERALL INVESTMENT STRATEGY IS TO ACHIEVE LONG-TERM YIELDS IN THE RANGE OF 4–10 % P.A.
Wine Management Fund’s investment strategy aims to outpace inflation and achieve current yields in the range of 4 to 10% p.a. One of the most acknowledged and respected indexes for mapping global wine prices, the Liv-ex Fine Wine 100, has grown by 1,648% since 1988, resulting in an annual appreciation of 14.8% (excluding transport, storage, insurance and trading costs). Wine prices are positively influenced by the following factors: long-term constant supply of investment wine, continuous decrease in wine stocks from a given year over time (wine is gradually drunk), wine maturation (its sensory quality increases), growth of global wealth (increasing number of affluent people and their wealth), globalization (an increasing number of wine lovers) and an unexpectedly high score given to a wine by one of the major critics, or its sudden rise. It is highly probable that all these factors will have a positive effect on wine prices in the years to come. The price of a certain wine can increase significantly immediately after its launch on the world market, especially upon receiving a higher-than-expected score in an evaluation from a prestigious wine critic. After this, the price of a wine usually stabilizes for several years and starts to rise again after a period of 6 to 8 years, when the wine gradually begins to be drunk, beginning to appear on the wine lists of famous Michelin-starred restaurants, and thus becomes rarer for consumers. For these reasons, the recommended minimum investment period for wine is 10 years, ideally 15 years.
On a global scale, it can easily be said that investment wines are dominated by wines originating in the Bordeaux region. Thanks to its exceptional terroir, it is the only wine-producing region in the world that is able to produce first-rate wines in relatively large quantities. The share of wines from this destination in world trade fluctuates between 60 and 90%. This fact allows potential investors to comfortably occupy larger positions. Other important regions producing quality wines include French Burgundy, Champagne, Rhone, Italian Piedmont and Tuscany, American California and several selected producers of Australian Shiraz, Spanish Tempranilla and German Rieslings. In some cases, sweet wines are also included in investment portfolios due to their longevity. These are mainly exceptional Port, Sauternian wines from Bordeaux and Moselle Riesling. Our fund, Wine Management, of course invests in all the above regions. Our greatest trust, however, is placed in small series of the best and most exclusive wines from top producers in Burgundy, Champagne, Piedmont and the northern Rhone. The market in investment spirits benefits from a global imbalance that spreads between supply and demand, especially for old single malt whiskies. These are produced in very limited quantities and are often definitively closed editions, so they will never be produced again. The current situation on the market with the highest quality spirits is such that the prices of rare whiskies are sky-rocketing due to the almost insatiable demand of affluent clients, mainly those coming from Asia.
I want to know more about the Wine Management Fund.
Content for download
INVESTMENT WINE REGIONS
INVESTMENT WHISKY REGIONS
ASSET PURCHASES WITH ANTICIPATED/EXPECTED ABOVE-AVERAGE VALUATION
The price of every wine stems from its origin/brand, quality of the specific year, the score it receives from a renowned critic, quantity produced and other specific circumstances (for example, poor harvest in the coming year or acceptance of higher prices on the market in the event of an exceptionally fine year). Therefore, we always strive to find the most interesting wines with the most favorable relative price for our clients, based on our in-depth knowledge of these issues.
EFFECTIVE PORTFOLIO DIVERSIFICATION
Wine Management Fund invests in wines from the most renowned vinicultural destinations around the world, made by the best producers, and in aged, fine spirits, especially whisky and Cognac, as well as in companies and real estate associated with the production of wines and spirits.
REGULATED STRUCTURE WITH STRICT RISK MANAGEMENT
Wine Management Fund is regulated by very strict rules, which are supervised by the Czech National Bank itself. The management of our fund is then strictly controlled by the depositary. Our company is valued by three experts who are independent of each other.
OSCAR WILDE: NOWADAYS PEOPLE KNOW THE PRICE OF EVERYTHING AND THE VALUE OF NOTHING.
INVESTMENT STRATEGY GOALS
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THE AIM OF THE FUND’S OVERALL INVESTMENT STRATEGY IS TO ACHIEVE LONG-TERM YIELDS IN THE RANGE OF 4–10 % P.A.
Wine Management Fund’s investment strategy aims to outpace inflation and achieve current yields in the range of 4 to 10% p.a. One of the most acknowledged and respected indexes for mapping global wine prices, the Liv-ex Fine Wine 100, has grown by 1,648% since 1988, resulting in an annual appreciation of 14.8% (excluding transport, storage, insurance and trading costs). Wine prices are positively influenced by the following factors: long-term constant supply of investment wine, continuous decrease in wine stocks from a given year over time (wine is gradually drunk), wine maturation (its sensory quality increases), growth of global wealth (increasing number of affluent people and their wealth), globalization (an increasing number of wine lovers) and an unexpectedly high score given to a wine by one of the major critics, or its sudden rise. It is highly probable that all these factors will have a positive effect on wine prices in the years to come. The price of a certain wine can increase significantly immediately after its launch on the world market, especially upon receiving a higher-than-expected score in an evaluation from a prestigious wine critic. After this, the price of a wine usually stabilizes for several years and starts to rise again after a period of 6 to 8 years, when the wine gradually begins to be drunk, beginning to appear on the wine lists of famous Michelin-starred restaurants, and thus becomes rarer for consumers. For these reasons, the recommended minimum investment period for wine is 10 years, ideally 15 years.
On a global scale, it can easily be said that investment wines are dominated by wines originating in the Bordeaux region. Thanks to its exceptional terroir, it is the only wine-producing region in the world that is able to produce first-rate wines in relatively large quantities. The share of wines from this destination in world trade fluctuates between 60 and 90%. This fact allows potential investors to comfortably occupy larger positions. Other important regions producing quality wines include French Burgundy, Champagne, Rhone, Italian Piedmont and Tuscany, American California and several selected producers of Australian Shiraz, Spanish Tempranilla and German Rieslings. In some cases, sweet wines are also included in investment portfolios due to their longevity. These are mainly exceptional Port, Sauternian wines from Bordeaux and Moselle Riesling. Our fund, Wine Management, of course invests in all the above regions. Our greatest trust, however, is placed in small series of the best and most exclusive wines from top producers in Burgundy, Champagne, Piedmont and the northern Rhone. The market in investment spirits benefits from a global imbalance that spreads between supply and demand, especially for old single malt whiskies. These are produced in very limited quantities and are often definitively closed editions, so they will never be produced again. The current situation on the market with the highest quality spirits is such that the prices of rare whiskies are sky-rocketing due to the almost insatiable demand of affluent clients, mainly those coming from Asia.
I want to know more about the Wine Management Fund.
Content for download
INVESTMENT WINE REGIONS
INVESTMENT WHISKY REGIONS
ASSET PURCHASES WITH ANTICIPATED/EXPECTED ABOVE-AVERAGE VALUATION
The price of every wine stems from its origin/brand, quality of the specific year, the score it receives from a renowned critic, quantity produced and other specific circumstances (for example, poor harvest in the coming year or acceptance of higher prices on the market in the event of an exceptionally fine year). Therefore, we always strive to find the most interesting wines with the most favorable relative price for our clients, based on our in-depth knowledge of these issues.
EFFECTIVE PORTFOLIO DIVERSIFICATION
Wine Management Fund invests in wines from the most renowned vinicultural destinations around the world, made by the best producers, and in aged, fine spirits, especially whisky and Cognac, as well as in companies and real estate associated with the production of wines and spirits.
REGULATED STRUCTURE WITH STRICT RISK MANAGEMENT
Wine Management Fund is regulated by very strict rules, which are supervised by the Czech National Bank itself. The management of our fund is then strictly controlled by the depositary. Our company is valued by three experts who are independent of each other.