Since 2004, wine has yielded a return of 247 per cent (an annual rate of more than 8 per cent) and the fine wine market worth some $5bn-$6bn per year globally has consistently outperformed other financial instruments, making it an attractive option for a wide range of investors. The global marketplace for the trade, Liv-ex (London International Vintners Exchange) has reported the market has remained relatively stable during the Coronavirus pandemic.
Wine investors see the return on their investment by exploiting supply and demand. While huge quantities are produced each year, not all wine is created equal. Great vintages and desirable bottles from the likes of Bordeaux and Burgundy are being acquired all the time – a full case in its original packaging is more likely to bring a higher profit - which leaves dwindling amounts available. The decreasing supply leads to increased demand which pushes up prices, and as many wines improve with age, there are further increases on demand giving collectors an opportunity to make a profitable sale. Investment-grade wines are prized for their brand, vintage quality and availability together with scores from critics. Alongside the famous French vineyards, there has been a strong demand for Champagne and northern Italian wines in recent years.
Seasoned collectors may be able to identify lucrative buying opportunities, but many will engage the services of a wine investment company who determine which wines are in line for a price growth and represent the strongest investment potential.
Due to the complexity of managing specialist assets, ILS World is experienced in partnering and working in collaboration with external accredited experts to ensure we provide clients with the best advice.
Our committed and qualified specialists provide practical advice and have a can-do attitude. We have the skills to work alongside acknowledged industry professionals addressing acquisition, handling, storage, insurance and the sale of collectible wines.
The ILS World team assists with:
• Establishment of tailored ownership structures
• Multi-jurisdictional company incorporation
• Comprehensive administration of the ownership structure
• VAT and Customs compliance
• Import and export services
• Maintenance and upkeep
• Provenance and history collation
• Coordination and liaison with technical specialists
• Accounting services
• Management and financial reporting
• The provision of directors, registered offices and registered agent/company secretary
ILS World is a global provider of independent fiduciary services and our private client team has considerable experience in assisting international clients with various solutions around wealth management, asset protection, succession and estate planning and trusts and foundations in multiple jurisdictions.
We act in the long-term interest of our clients and pay careful attention to the quality and personal service we deliver.
The team works hard to create long-term relationships and provide the highest level of service. We do this by being approachable, flexible and pragmatic. We offer regular face-to-face meetings as required and provide direct contact with a senior member of the team. Staff have diverse backgrounds, skills and interests and their professional experience together with their "can-do" attitude means they understand that wealth and business are inextricably linked.
Our private clients often require an international strategy and as a global business with offices in a number of key jurisdictions we are well-placed to provide a cohesive service.
Our network includes offices in:
• British Virgin Islands
• Hong Kong
• Isle of Man
For more information on our asset protection services, please visit: https://www.ils.world/expertise/private-wealth
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This article is part of the ILS Private Client Series, a collection of commentaries originally generated in response to specific enquiries by individual clients. We have amended this briefing on watches to enable us to share it with a wider audience with similar interests. Read the full compendium on our website by clicking here.
Please note: ILS World does not offer tax advice and would therefore recommend you obtain your own tax advice. If you require an introduction to a tax adviser, we would be happy to assist.