Fine wine is now a serious alternative asset class and should provide a great inflation hedge.
Since 1989, fine wine and whisky have outperformed mainstream assets.
Fine wine has genuine intrinsic value. More and more investors are moving into limited supply ‘tangible’ assets like fine wine to protect against inflation.
There is almost no correlation between fine wine and mainstream financial assets.
We believe all investors could benefit from having an allocation to fine wine / whisky.
We publish our GBP 200,000 Recommended Fine Wine Portfolio below.
Our new state-of-the-art portfolio management tools make managing your portfolio simple.
Our Recommended Portfolio is available to view on our website in real time.
In a period of high inflation, investors should consider from having a percentage of their net worth in ‘tangible assets’ like fine wine.
Fine Wine: Long-Term Investment Performance Fine wine has a remarkable long-term track record.
Since 1988, it has returned a compound annual price growth rate of +10.2% per year, rising a staggering +2,350% between 1988 and 2022. Fine wine has been a better investment than almost any other asset class over the past quarter of a century.
Fine Wine: Low Volatility
Fine wine exhibits extremely low volatility. Significant falls in fine wine prices are almost non-existent because there are rarely forced sellers. In times of economic weakness, owners choose to hold and consume, rather than sell. Low volatility and high returns combine to give fine wine a ‘Sharpe Ratio’ well above that of most mainstream assets.
Fine Wine: An Uncorrelated Asset Fine wine is uncorrelated with mainstream assets. Fine wine can act as an important portfolio diversifier.
Cru Recommended Portfolio: GBP 200,000
Our Recommended Portfolio (the “Fab Forty” wines) combines the twin aims of wealth preservation and liquidity. The Portfolio is diversified across regions and maturities, and generally represents the highest quality fine wines available today. The whole portfolio costs GBP 200,000 currently and can be purchased directly from Cru as a one-off transaction). Our aim is to give cash rich / time poor investors a simple way to create an instant fine wine portfolio.
This Recommended Portfolio is constructed to offer long-term inflation protection (plus more). Investors should be looking at a holding period of 5-8 years in order to maximise its benefits.
This Portfolio can be customised for larger or smaller investment amounts.
Note: Prices correct as of 12th September 2022.
Recommended Portfolio: Regional Breakdown
Our Recommended Portfolio offers a broad and diversified exposure across vintages and regions.
Note: Prices correct as of 12th September 2022.
Is it expensive to invest in fine wine / spirits?
No. If you invest via the Cru platform there are no up-front fees, no management fees, and no platform charges. You pay a small monthly amount to cover the cost of storing your wine and you pay only 5% commission on selling (no fee on buying).
How liquid is fine wine?
Fine wine is a longer term asset, like property or private equity. But trading volumes are increasing year on year, and many of our clients are already able to ‘day trade’ successfully. Because Cru has one of the world’s most active retail businesses, you should be able to tap into these flows to generate sales on a regular basis.
Is fine wine a secure investment?
Yes. On the Cru platform your wines / spirits are stored in Government-regulated third-party storage facilities (held in your name and insured to replacement value) in Bordeaux, London, Hong Kong, California, and Singapore. It doesn’t matter where you wine is stored in terms of portfolio analysis; you will be able to see everything on your portfolio management dashboard.
Is buying and selling fine wine complicated?
Not with Cru. The Cru platform provides full visibility of your assets in real time. You can manage everything from your desktop or phone, setting your own offers and bids at whatever price you choose, whenever you like. You will also be assigned a dedicated (human) account manager to assist you on all aspects of setting up your portfolio and running it (should you require it).
How do I know what to buy?
Our Recommended Portfolio is shown in this note. This is a list of core holdings for long-term value creation / preservation. In addition, Cru provides research on what to buy and sell on a regular basis (without charge). After that you are in full control. Your account manager will help you with allocations of the best new releases, but you will make the day to day decisions on what to buy and sell.
How do I know I am getting the best price?
Cru provides data on the market prices of all of our assets. In addition, we encourage you to use our platform to choose your own price, bidding your price for anything you want to buy.
Can I cash out and realise my profits?
Yes. You can withdraw cash from the platform at any time, and funds are credited to your account in 30 days.
Managing Your Portfolio
Cru provides state-of-the-art tools to enable clients to monitor and manage portfolios. Clients can see all positions, with independent pricing, and can buy and sell through the platform 24 hours a day, 7 days a week. Below are just some of the tools we provide (with no charge for use):
Buy and Sell Wines:
Tight Bid / Ask Spreads:
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