1 What is Cult Wine Investment?
Founded in 2007, Cult Wine Investment is the global leader in fine wine collection and investment management. We combine our unparalleled wine knowledge, a world class investment team and data driven technology to make fine wine investment simple, fair and secure. With a track record of solid, stable performance, we make it easy for you to own a portfolio of the most sought-after wines in the world, tailored to your personal investment goals. We believe wine investment is about more than portfolios, which is why we prioritize access to renowned experts, amazing wines and money-can’t-buy wine experiences.
2 What services do you provide?
We offer a range of fine wine services including fine wine investment and collection management, storage solutions (through our bonded warehouse in Melksham, UK), private cellar and in bond fine wine valuations and the sourcing of rare and hard to find wines.
3 What services do you provide?
We offer a range of fine wine investment services including storage solutions (through our bonded warehouse in Melksham, UK) and the sourcing of rare and hard to find wines.
4 How does wine investing work – will you walk me through the process?
Investing with Cult Wines Investment is simple, we manage your investment from start to finish, advising and guiding you through the entire process. First, you decide how much you’d like to invest, you can start with as little as CAN$12,500. Once you have identified your parameters – your investment objectives, risk appetite and term – we'll build a separately managed, custom portfolio perfectly matched to your needs. Finally, you'll fund your account after which the wines will be allocated in your name and stored in our bonded wine facility. All of your wines and their performance can be tracked via our client portal.
5 Is investing in wine suitable for me?
Anyone who has the minimum required capital can invest in wine. As an alternative asset class, we recommend investing between 5-10% of your overall portfolio. Fine wine is an excellent diversification tool as part of a portfolio alongside other unrelated assets.
6 What is a wine investment fund? Is Cult Wine Investment a fund?
Cult Wine Investment is not a wine fund. A wine investment fund is similar to a hedge fund - investors pool their money into a fund which is used to purchase wines. The fund is then managed by a professional fund manager. These investors do not own any of the individual wines, and this is solely a vehicle for making money. Investors can never take delivery of any individual wines or cases as they do not own them outright.
At Cult Wine Investment we offer clients individual portfolios of fine wine built around their investment parameters. Our clients own the individual bottles and cases of their wine, and we store their collection within our bonded warehouses until physical delivery is taken. During our care, the wine is stored safely and can appreciate effectively whilst clients benefit from the added experiences that Cult Wine Investment offers, from exclusive tastings to vineyard trips.
7 How is wine investment regulated?
Wine, along with other alternative and passion assets, is not regulated by the Financial Conduct Authority or the Securities Commission.
8 How can I sell my wine?
Yes, it is your wine and you can sell it at any time. Our specialist trade and wholesale team are available to sell your wines on the secondary market whenever you like. They sell directly to the global wine trade as well as to private collectors and consumers.
9 What are the recommended investment terms?
Fine wine is a medium to long term investment. Generally, we advise clients to set a minimum 3-5 year horizon for their portfolios in order to benefit from a typical market cycle, with an optimum term of 5-10 years.
10 How can I sell my wine?
Our specialist trade and wholesale team are available to sell your wines on the secondary market whenever you like. They sell directly to the global wine trade as well as to private collectors and consumers.
11 How do you mitigate fraud and ensure provenance?
We buy as much wine as possible directly from the wine producers, the negociant or appointed agents, thus dramatically reducing the opportunity for fraud. In all instances, suppliers complete a ‘Due Diligence’ form including a trade reference which they are benchmarked against to establish a risk profile. If a bottle of wine falls outside that risk profile, for example a 20-year-old bottle – it undergoes a rigorous inspection by our expertly trained specialists to ensure authenticity. We regularly carry out additional authenticity checks using specialist equipment and training. In Cult’s history, and dealing with way over a million bottles of wine, there have been no fraudulent bottles. If somehow a fraudulent bottle were to make it through our security screens, we would replace it for you or give you your money back at the then prevailing market price.
12 How can I learn more about wine?
At Cult Wines we are passionate about wine, and passing on the knowledge and insights we have gained over the years. We’ve put together Wine Academy, a comprehensive resource with information on producers and vintages all so you can nurture your passion. As a client you will also have access to our client portal which allows you to access data on the wines in your portfolio.
13 What is the risk of investment in fine wine?
Wine is an investment market like any other, so prices can go both up and down. Since records began, fines wines have always had an inherent value. Based on the Liv-ex Fine Wine Investables Index (Calculated in GBP), since 1988 the CAGR over a ten-year hold has averaged 12.9% (low of 5.4% and high of 18.4%) reflecting the low-risk factor of this investment.
14 What is the risk of investment in fine wine?
Wine is an investment market like any other, so prices can go both up and down. However, the Liv-ex 1000 index, the broadest measure of the market, has displayed a relatively low risk factor compared to other investments. Since inception in 2004, the index has a compound annual growth rate of 9.1% alongside an annualised volatility rate of 4.9% (as of 30 Sep 2022). This compares favourably to major equity indices which had volatility rates in the double digits over this same period.
15 Do I need to consider currency fluctuations?
Yes, as your wine is sourced in different currencies, in particular the English pound, there will be currency fluctuations.
16 I already have a cellar, collection, investment – can I transfer it to Cult Wine Investment?
We provide a simple and stress-free portfolio transfer service, beginning with a complimentary valuation. For more information visit the portfolio transfer section on our website.
17 What sustainability initiatives do you have?
Cult Wines is proudly invested in offsetting carbon emissions through dedicated projects around the world, championing sustainability, supporting ethical practices, and actively contributing to the future of the wine industry with impactful initiatives. We are carbon neutral via a dedicated, accredited offsetting programme with Carbon Footprint Standard.
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