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EIS offers taste of diversity

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The Wine Enterprise Investment Scheme is an EIS that aims for growth by trading fine wine from established producers.

This EIS is managed by Anpero Capital, co-founded by Andrew della Casa and Rodney Birrel, who launched the Wine Investment Fund in 2003. Anpero Capital also employs investment managers William Grey and Chris Smith, who have 17 and 15 years experience respectively in the wine industry.

The investment team will trade in fine wine of limited production with no restrictions in terms of region, but there will be a bias towards the Bordeaux region of France. They will build a diverse portfolio of wines from different producers and vintages, but will invest only in highly sought after vintages and wines with a reputation for ageing ability.  These must be well stored. The team will avoid over-hyped wines that have risen in value only recently; unusual bottle sizes, wines that are coming to end of their life span and wines that are still in the barrel, known as en primeur wines.

The strategy is the same as that of Anpero’s wine investment fund - to buy wine as cheaply as possible to sell as highly as possible - but they will trade the wines in this portfolio more frequently.

Investors who are looking for diversification from traditional asset classes along with the tax benefits of an EIS may find this product attractive. However, there may be times when wines are difficult to sell, which would impact on returns.

This EIS may also face competition from Vindemia 2 EIS, another wine EIS offered by Ingenious. However, its initial charge is 1.5 per cent higher, while a 30 per cent performance fee is charged compared with Anpero Capital’s 20 per cent fee.

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Readers' comments (1)

  • Challenges are lying ahead in the wine investment market and this is clearly a sign this theory is now taking hold. Liv-Ex (the industry benchmark) is showing remarkable price growth since 2008 but that this translates into growth for fine wines under management through wine investment funds? If anything, wine investments under management have actually never recovered since the peak in 2008.
    Valuations are going down steadily since the second half of last year and with valuations going down so are redemptions.
    Therefore, EIS and related wine funds as new products may be an alternative but probably we should start thinking again that fine wines must be consumed in order to reduce supply; once that happens, demand will "naturally" put an upward momentum to prices. It seems that many wine investment products are now available but without drinkers (or with less people willing to drink these fine wines) how are these investment products deliver profit returns without risking to over inflating the market once again?

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