Introducing: WineFi Syndicates

Firstly, a quick reminder about why we exist.

Since inception, our vision has been simple yet transformative: to make wine an integral part of every investment portfolio.

Lets remind ourselves...Why Wine?

? Superior Risk-Adjusted Returns: Wine consistently outperforms mainstream equity, bond, and commodity indices in terms of risk-adjusted returns. This makes it a compelling addition to any investment strategy.

? Uncorrelated Asset: Wine’s lack of correlation with traditional asset classes offers investors a valuable diversification tool, helping to reduce portfolio risk.

? Low Volatility and Downside Protection: Much like gold, fine wine acts as a ‘safe haven’ asset, providing stability even in volatile markets.

? Tax Benefits: In the UK and many other jurisdictions, returns from fine wine investments are often exempt from Capital Gains Tax (CGT), further enhancing their appeal.

COOL - Tell me more!

? Complex and Opaque Market: Investing in wine has traditionally been a complex, opaque, and expensive process.

? Industry-Dominated by Merchants: The market is dominated by wine merchants who excel in their knowledge of wine but often lack investment expertise. Additionally, questionable wine investment companies charge premiums for wines unlikely to appreciate.

? High-Friction Experience: The process of engaging with these intermediaries is often cumbersome and outdated.

? Steep Learning Curve: Understanding wine as an asset class requires significant knowledge, posing a barrier to many potential investors.

"...my Dad and Uncle share a wine portfolio, but the learning curve (to understand wine as an investment) just seems too steep unless you are already super into it. I've invested (in art) through Masterworks, because it just seemed much easier - it's all done for you. That's the fun bit of my portfolio..." Alex 31yr-old Lawyer (WineFi interview, Aug 2023)

? High Entry Costs: Traditionally, the only way to invest in wine has been to purchase individual cases or bottles outright. This makes building a diversified wine portfolio prohibitively expensive for many investors.

? Concentration Risk: Due to capital constraints, most wine investors end up with a concentrated portfolio and often lack a clear understanding of what they’ve invested in and why those specific wines were chosen.

So what the solution?

Affordable Access: Our syndicate model allows investors to gain exposure to a diversified, expertly curated portfolio of fine wines at a fraction of the cost of owning the underlying wines outright.

? Seamless Integration: This model enables investors to effortlessly integrate wine into their portfolios, removing the traditional barriers to entry.

? Co-Investment Approach: Through our unique syndicate structure, investors co-invest in a curated portfolio of fine wines, benefiting from our expertise while retaining control over their investments.

How It Works

1. Portfolio Curation: WineFi curates a diversified portfolio of investment-grade wines based on specific themes (e.g., Champagne, Burgundy, 100-pointers).

2. Syndicate Membership: Investors can apply to join these syndicates, decide on their contribution, and sign the necessary documents

3. Asset Custody: WineFI Nominee Limited holds the assets on behalf of syndicate members, ensuring secure and professional management.

4. Investor Control: Syndicate members maintain day-to-day control of the assets, making key decisions through a voting process.

5. Strategic Sales: When the time is right, we recommend selling the assets. If members approve, we execute the sale and distribute returns pro rata.

6. Transparent Fees: We take a 10% sourcing fee on the acquisition cost of the assets, equivalent to a 2% annual management cost (AMC) over a five-year holding period.

Simple!

Want to get involved?

Our first collection, Champagne sold out in just a few weeks with our latest collection focussed on the fantastic region of Burgundy.

Click here to learn more about The Burgundy Collection

Fine wine is an alternative and illiquid asset class and should only form a small part of a well-diversified portfolio. The value of your investment can go down as well as up and you may not get back the full amount you invest. Please invest aware. Your capital is at risk

Drop me a DM if you have any more questions!

Until next time.

JK