FAQ

Isn’t wine a risky investment?
Absolutely not. On the contrary, investments in right wines have NEVER declined in value. Historically, amongst major asset classes, wine continues to consistently perform smartly with an average return of 18% PA (see chart below).

How do I know you have purchased the wines on my behalf?

The investment amount is immediately put to use to procure the wines. Once the wine is purchased you will receive a sale contract (incorporated under U.K laws) from us. You will also receive a confirmation in writing from the government owned bond warehouse about your stocks lying with them and cannot be removed until you – the customer authorises them to do so.

Is wine a better investment than other types like Stocks, Art etc?
The idea is NOT to compete with other asset classes; instead it is to spread the risk of your investments in various sectors, wine being one of them. Data demonstrates that wine has no correlation between stocks or property market – This is a good thing. The recent economic environment is increasingly forcing people to look at alternative investment opportunities. Demand for investment grade wines is growing rapidly as more people are getting aware about the benefits of this asset class.


What factors do you consider when investing in wines?
Quality – The wine company must be recognised as a quality producer and must have the ability to improve with age over a long period of time.

Vintage - The year in which the wine was produced (i.e. vintage) will also determine price of wines. For instance, if the climate conditions of a particular year were good – the price is generally high, especially if the wine is purchased before and sold during the window in which it must be consumed. As a thumb rule, out of 10 vintages, 3-4 are considered as good wine investment opportunities for a particular label.

Track Record - The producer should have a sound track record and must be able to clearly demonstrate the performance of quality and price revised upwards.  It must also be rated highly 90+ points by wine critics to attain global attention and demand.


Is my capital protected?   

Like all investments, the value of wines can go up or down. In most cases however, an average return of 17-20%/annually is expected.

Why Globus Wines
- All investments are professionally managed.
- Ownership of stocks is in the client’s name for individually managed portfolios.
- Regular valuations from Live-Ex (London Vintners Exchange) ,including Auction Updates
- Low Service fee
- No hidden charges
- Piece of mind as all investments are stored in customer managed accounts instead of one company account with storage certifications endorsed by bonded warehouse.
- Access to dedicated professionals having decades of rich experience to  buy at  dealer  prices and sell to secondary market.
- Industry knowledge and expertise in the global wine market and in particular Bordeaux    fine wine investment.

How much will I need to pay to maintain a personal investment portfolio?
We charge an initial advising fee of 5% on total value of investment and for each remaining year 3%. This is significantly lower considering that we will procure the wines at wholesale prices via our professional network, which will give you considerable savings to out cast our fees. You will not be charged anything additional during your tenor of investment. There are no one-time fees/charges on sale either. You can also top-up your investment portfolio free of cost.

Is wine a liquid asset. Can I exit quickly?
Yes. We will use a dedicated network to manage the sale for you. This includes stockiest, brokers and retailers around the world. In most instances you will receive an immediate quote for the wines but it is recommended that you allow up to 8-10 weeks for the value of portfolio to be completely realised as the aim is to sell the investment to secondary market where you will get the best prices for the wines.

2 other avenues that are also available to investors are i) Auction Houses which are increasingly playing an important role globally and ii) Wine Funds that buy hold and re-sell investment grade wines to generate returns for their investors.

I am new to wine investing. Can I still invest?
We are here to help. Our expert individuals and combined knowledge of decades will help you understand the intricate rules of supply and demand as we further along, we can structure, re-structure and keep an eye on your investments on your behalf and advice you when to sell in regular intervals. The idea is to show you the best route map to maximise returns on your way.

Can I store the wines personally?
We do not advise our clients to do so and cannot stress enough the value you will receive when storing the wines professionally. If you are looking to maximise the return on your investments then you must keep the bottles in excellent storage condition to reflect positively on its value. Wine is a sensitive item and it is always advisable to utilise the excellent storage conditions that are equipped with humidity, temperate control to cellar the wines properly. Currently around 80% of the total fine wine is stored in Paris and London bond with estimated value of £8 bn showing the importance of both these storage centres.

Where are the wines stored?
The wines are always stored in government-licensed bonded warehouses on both sides of the Isle i.e. London and Paris which boosts world-class storage facility where the wines will cellar properly.

How do I know if the valuation of my portfolio is accurate?
We use Live Ex (London International Vintners Exchange) which provides Europe Wide trading prices of top 100 wines and use independent wine reporting company based in Bordeaux. Live Ex is equivalent to stock market indices like S&P, Nikkei or FTSE in the wine world.

What is the time horizon for investments?
You can redeem your portfolio at a suitable time you may find appropriate but we recommend you to keep an investment horizon of at least 3-5 years as wine tends to go up in value in a disproportionate manner.  We will always guide you regularly on your investments and suggest changes, should the need to do so arise.