Frequently Asked Questions
Vintage Associates do not hold a stock list of wine and therefore each wine is traded through Liv-ex. Liv-ex is a live open market and prices are constantly changing. Once your consultant has produced a tailored portfolio plan, you will then be provided with the price for that wine. All wines invested in through Liv-ex are priced at the current Liv-ex market value.
Yes, you can. The wine market is one of the most tangible investments available and you as the investor will be in full control of your investment. Obviously, we do not recommend that you drink your wine as you will essentially be drinking away your profit. There will also be penalty charges if you wish to take a case of
wine out of bond.
Yes, you can. Your wine is stored in your own individual vault, in which you can visit upon request. All you have to do is book an appointment through your Vintage Associates portfolio manager and they will arrange a convenient time for you to come and visit the bonded warehouse. You can also have a condition check on your wine throughout the duration of the investment on request.
Vintage Associates hold a master account at London City Bond and open up a sub account for every new client that comes on board. As per our terms and conditions, the wine held in the stub account are completely separate from business assets and are completely owned by the client. Using a sub account makes the process much easier for when you want to sell your acquisition. You will need to complete an authorisation to sell document in order for us to move the wine back into our account for it to then be placed back on to Liv-ex. You will also receive a storage confirmation which will list the wines you hold in your account along with a certificate of ownership.
Portfolios with Vintage Associates start at £20,000 to ensure we can provide a diverse portfolio spread across the five major regions (Bordeaux, Burgundy, Italy, Champagne & California).
The London international vintners exchange is the global platform used by merchants to buy and sell wine. As a trusted member of the exchange (of which there are fewer than 450) we are in a position to connect our clients directly with the exchange, giving us the opportunity to buy and sell our clients wine when necessary. With daily updates, market reports and up to date pricing, you can begin to see how valuable our partnership with Liv-ex is.
It is common knowledge that fine wines mature and become more profitable with age. With that in mind, the longer you hold your wine collection, the more profitable it should become. Our consultants are given daily updates on the market through our data team, so have a vast array of information readily available to advise you on the best time to sell your wine. We recommend that you hold your wine for a minimum of five years, however due to the liquidity of the investment you are in complete control of when you sell. Please bear in mind that this market is driven by strict rules of supply and demand. This means that the longer you hold your investment for, the better chance you have of your wine being consumed, thus decreasing the supply and increasing the demand.
First you should contact your consultant who will begin the process of liquidating your portfolio. We will then look to Liv-ex for an up to date valuation on your portfolio and we will either look to sell directly through the exchange or to other investors in order to achieve the best possible price. There is no fee to sell through Vintage Associates.
The cost of storing your wine at London City Bond Vine is included with in our management fee for the first five years. If you choose to continue to store your wines at LCB beyond the five years you will be charged £13.20 per case per year.
Yes, you can. Providing the cases are in good pristine condition and are stored at a reputable UK bonded warehouse, we would be more than happy to value your wine and make you an offer.
Buying and selling wines “under bond” have several benefits for both the buyer and the seller. It gives clarification that the wines are being stored in perfect conditions and it also ensures traceability. Wines that are stored in a government bonded warehouses are not liable to duty and VAT. Part of the agreement with the bonded warehouse includes insurance, which is regarded as the best protection within the sector.
The fine wine market is notorious for being a tax-free investment. Fine wine is regarded as a wasting asset. This means that it is exempt from income tax and capital gains tax. This ensures that you will see 100% of the profits made.
The fine wine market is notorious for the liquid nature of the investment, however when liquidating your portfolio, we would recommend a timeframe of up to eight weeks from the day you are looking to liquidate in order to generate 100% of the market value.
Wines are rated by a number of well renowned critics, whose job is to test and give a rating from 0-100 on each vintage that is produced that year. It is widely known and trusted within the industry that anything bearing a score of 90 and above is sure to be a sound investment. The opinion of these critics are valued extremely highly by investors and collectors and therefore we will only offer vintages that have a score of 90 or above. You will receive the tasting notes from the critics on each wine before you purchase.
All wines held at London City Bond Vine are insured through Lonham group insurance. This policy is taken out by LCB on behalf of the client. The cost of insurance is free for the first five years and charged at 0.5% of the current market value every year thereafter.
All wines held at London City Bond Vine are insured through Lonham group insurance. This policy is taken out by LCB on behalf of the client. The cost of insurance is free for the first five years and charged at 0.5% of the current market value every year thereafter.
As per our terms and conditions, all of our clients wine is completely separate from business assets. Once a client opens a sub account under Vintage Associates at London City Bond, all the wine stored in the clients account is completely owned by the client. Once the wines have been paid for, ownership and title is transferred over to the client and a certificate of ownership is provided as documentation for this. If Vintage Associates were to cease trading at any time, clients would only lose the ongoing management and service that Vintage Associates is obliged to conduct.
By going through Liv-ex it ensures that all cases purchased are Sealed In Bond (SIB) approved. Every wine goes through stringent conditions checks before being listed on the exchange where Liv-ex guarantee the condition and authenticity of the wine. All wines are in their original wooden casing and have been stored in the correct conditions since being bottled. This is the best way to ensure and maintain the highest sell on value as this is what collectors will look for when you come to sell your wine.
Due to daily market fluctuations, we are unable to provide you with on the spot valuations,
however we provide all investors with yearly valuation reports. As part of your ongoing
management from your consultant, each client will receive a yearly update on the overall
performance of their portfolio and the market in general.
You do not need to have any knowledge on the fine wine market, that is why we are here. You will be provided with an experienced portfolio manager whose role is to provide you with a hand in hand service from initial investment all the way through to liquidation.
If you have any further queries or still have unanswered questions please do not hesitate to contact us.
