5 Shocking Facts About VCM High Yield Wine Investments
Welcome to the roaring 20s! The start of a new decade has us reflecting on what we do and why we do it.
By Charlotte Adams
Fine wine investments are exciting and different – and we understand that at first it can be scary to invest in an alternative asset class. We want to be open and transparent with you about how we manage your investment and why you should consider adding fine wines to your investment portfolio.
So, we’ve done some thinking – and we’ve done our research – to come up with these top 5 reasons why you should feel confident investing with VCM.
“The Liv-ex Fine Wine 1000 index, which determines the ROI for 1000 wines across the world, shows a 42.82% ROI over the last 5 years”
1. Higher yield performance than other alternative investments
We’re going to let the numbers speak for themselves here.
Our 2019 total fund return on investment (ROI) was 48%. Our total assets under management are 30€ million. According to a number of recent studies,the returns on fine wines are higher than the Dow Jones Industrial Average. The Liv-ex Fine Wine 1000 index, which determines the ROI for 1000 wines across the world, shows a 42.82% ROI over the last 5 years. The ROI for fine wines is higher than other alternative investments, such as art and stamps.And compared to traditional asset stocks, fine wine investments are nearly four times higher; the S&P 500 index showed only an 11.7% ROI over the last 5 years.
2. VCM portfolios are low risk, low barrier to entry, and help you diversify your assets
Our portfolios are low risk. Fine wine is less susceptible to market downturns because it is a tangible asset. It can be used to “hedge” against recession, inflation, and currency devaluation.
Because wine is a tangible asset, it has to be preserved. We hold your wines in the Geneva Freeport.It is one of the industry’s leading specialist wine storage providers and is responsible for millions of cases of wines. It is climate controlled 24 hours a day, 7 days a week.
And guess what! You don’t need to be a millionaire to invest in fine wines or vineyards. Our minimum investment is just 2500 euros, and our price per share starts at 1 euro. You’d be hard-pressed to find an asset with this minimum investment that gives you a 40% or higher ROI. You can cash out after as little as 12 months, and receive quarterly yield payments. Our management fees start at just 5% per year and we have NO high water fees.
When you invest in fine wines, you are investing in an alternative asset. Fine wine asset performance does not directly correlate with financial markets and can be used to diversify investment portfolios.
3. Fine wine is in high demand
French wines have been in global demand at least as far back as the 12th century, when Bordeaux started to export its wines to England. In 2018, the French wine and spirits export market reach a record of 13 billion euros. The United States remains the largest export market for French wines, though markets like Singapore and Hong Kong are continuing to grow stronger. While it is true that the Chinese market suffered in 2018, the Chinese market is largely supplied by Singapore and Hong Kong which had their second best year for French wines and spirits at 2.5 billion euros. This confirms the longevity of the Chinese market.
4. Wine investments are generally not subject to capital gains taxes
If you were to invest in real estate or stocks, for example, you would have to pay a tax on the money that you earn. This is called capital gains tax. Wines are generally considered to have a limited lifespan of 50 years, which means that it is classified for tax purposes as a “wasting asset” and is thus not subject to capital gains taxes. This means the best returns for your money. For more information or advice, please be sure to contact a financial advisor.
5. We’re not robots
When you invest with VCM, you will be assigned a personal investment manager – who is a real human. You won’t have to wait on hold, and you will never speak to a robot. You’ll get us on the phone, every single time.
Our portfolios are meticulously selected by our team. Every bottle that you invest in is HAND inspected. We visit every chateau, every domaine, and every vineyard that we purchase. We speak to the winemakers, we feel the soil with our hands, and we taste the wines before we buy them. And even if we didn’t go the extra mile, when you’re investing in Lafite Rothschild, Margaux, and Haut Brion, the names speak for themselves, don’t they?