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Investment Strategy & Profile

Learn more about the Fund strategy and profile

Investment Strategy & Profile

Investment Strategy

The Fund’s Investment Strategy is to achieve long-term capital growth through the natural appreciation of investment grade fine wines and other wine related assets. The Fund will buy and sell wines when conditions are most favourable; making decisions based upon thorough market analysis. The primary assets of the Fund will be the wines under management, though the Fund may also invest in vineyards and other wine related investment vehicles.

The Fund may also retain small amounts of cash and other liquid monetary instruments. However, the principle objective is the capital appreciation on the wines under management, whilst managing the risks associated with wine investment and changes in the global financial markets.

The Fund will look to sell wine across the world market, through a broker, into the trade or to private clients. The Fund will aim to achieve the best price possible when it comes to the disposal of assets and pay a sales commission not exceeding 30%.

All investments involve investment risk and may result in losses instead of gains, as certain events affecting market performance may mean the Fund’s investment objective cannot be assured.

Investment Profile

The Fund will acquire a wide range of fine wines that may include Champagne and fortified wines. Wines released to the market en primeur (on a futures basis, where the wine is released to the market whilst still in barrel) will also be considered. The Fund will take advantage of its strong contacts in the UK and Europe where parcels of off-market and grey market wines may be offered on a confidential basis. These wines often require a quick decision and immediate purchase.

The Manager will use its sole discretion on deciding in which wines to invest. The Fund may deem it necessary to hold 100% classed Bordeaux wines (including wines from Pomerol & St. Emilion with equivalent recognised status) at certain points, depending upon market conditions. The Fund may also see an investment opportunity in, for example, wines from new regions where there is no previous track record, but have achieved critical acclaim and identified as having investment potential.

The finer detail of the Fund's strategy and profile will be kept confidential, as leaked information to the broader market may have a detrimental effect on the Fund’s performance.

Criteria

The Fund's investment criteria will be broadly based upon the traditional fine wine sectors (approximate percentages), as shown in the chart opposite.

For further information regarding each of the wine regions indicated here, please see Types of Wines Considered. This provides a general reasoning why these regions are relevant to the Fund.

There are various factors that can influence the criteria for both the buying and selling strategy of the Fund going forward. For example, currency exchange rates, a substandard vintage (or run of vintages) due to poor weather, or an adjustment in the perceived quality (up or down) of a wine by influential wine critics.

About Vinculum Wine Fund

Vinculum Wine Fund offers an opportunity for high-net-worth individuals to invest in an alternative asset class. In an uncertain world, diversifying your investments is now more important than ever. The Fund management team use their wealth of wine trade and market experience to achieve the aim of long-term capital growth. Not only taking advantage of natural appreciation as fine wines approach their drinking peaks, but also understanding the market trends and the risks associated with wine investment and global financial markets.

Vinculum Wine Fund Ltd is a British Virgin Islands limited company and is part of the Cadman Capital Group; a multinational private equity group specialising in alternative investments for high-net-worth individuals

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