Frequently Asked Questions

What is a Portfolio manager?

Each of our clients is assigned their own dedicated portfolio manager who will be responsible for estabilishing a tailored investment strategy. Your portfolio manager will keep you updated with monthly newsletters, and market updates and can arrange to meet you personally if you require.

Minimum investment?

There is no minimum investment level required to use our services. However, we do recommend £5,000-£10,000 as the optimum starting point. This will allow you to build a diverse and balanced portfolio, and to access stock with the greatest potential for growth.

What wines will I be investing in?

Your dedicated portfolio manager will discuss your available investment level and will propose a portfolio comprised of wines designed to match your investment objectives. The majority of stock held by our clients is from the investment-grade top chateaux of Bordeaux and Burgundy wine that remains the backbone of this market (83% of trade on Liv-ex by volume, as of 2013).

Your manager will also explore options for portfolio diversification with you, with investment grade wines from Italy, Spain, Australia, USA and Portugal.

What are the possible returns on a typical investment portfolio?

Fine wine has returned 12-15% per annum over a typical five-year term (Liv-Ex data since 1988. 12-15% is an average figure taken from 1988 until 2013). Our team of wine experts are tasked with outperforming this average market performance. Maximising your investment is our primary objectives.

What is the minimum period to hold the wines?

Generally, we suggest investors to set a minimum 3-5 year perspective for their portfolios in order to benefit from a typical market cycle, with an optimum term of 5-10 years. If you can not afford to have your money tied up in the market for this amount of time please consider that investing in fine wine may not be for you.

Where are the wines kept?

The wines are held at LCB – Vinothèque, a bonded-warehouse based in Burton-Upon-Trent, Staffordshire. Vinothèque is a grade II listed building which provides ideal conditions for the storage of fine wine, wine cases are clearly labelled with an individual lot number, specific to its owner, and the well organised computer system makes each case instantly locatable.

Storing wines in a bonded warehouse such as LCB ensures perfect provenance, allowing your wines to achieve the best possible returns when it comes to selling stock. Wines stored in this way are VAT-exempt.

LCB is the largest and oldest bonded warehouse in the UK, storing wines in a managed optimum climate where temperature and humidity are regulated to keep wines in perfect condition. You will receive documentation from LCB certifying you as the sole owner of the wines. If as a client you would like to see the wine, we can assist in arranging condition checks and photos or a personal visit so that you can check the stock onsite yourself.

If you already have your own storage account or would like to arrange an alternative storage solution, we will be happy to make the necessary arrangements. Furthermore, if you would like your wine to be held outside the UK, we can make arrangements on your behalf through our current international logistics partners.

OWC

Wines stored in their original wooden casing (OWC) hold most market desirability and garner the best prices. Wines can also be stored in original cardboard casing (OCC).

Duty paid cases

Wines that have been removed from bond, and thus have had the Excise Duty and VAT paid on them (DP), will generally command a lesser price than those which have never been removed from bond. From a buyer’s perspective, IB cases are far more desirable than DP cases as they can offer immaculate provenance.

How much is Wine Duty?
£2.08 per 75cl bottle of still wine.
£2.67 per 75cl bottle of sparkling wine.
£2.78 per 75cl bottle of Port wine
UK VAT 20% (applied after duty)

More information on duty can be found at
www.gov.uk/tax-on-shopping/alcohol-tobacco

Damaged stock

With cases of wine that are of a significant age, a certain degree of soiling or damage to labels can be expected. Wine bottle labels become discoloured or wrinkle naturally over time whilst being stored at optimum temperature and humidity. Thus, as long as provenance is impeccable, soiling of this kind in aged bottles should not detract from value.

How ‘tax-efficient’ is fine wine really?

Client wine reserves stored in bond are VAT-exempt as they are considered ‘suspended’. If you decide to remove your wines out of bond, they will become liable for VAT and Excise Duty. We always recommend discussing new investment with your tax advisor, to ensure you can benefit most fully from fine wine investment. Montevino Partners are not tax advisors. For more information on fine wine, please contact your Tax advisor.