Albany Portfolio Management
The smart way to invest in wine
Which wines should I buy?
Bordeaux represents in excess of 90% of the investment market, and we strongly suggest that novices stick to this region. We specialise in Cru Classe ‘First Growths’ (wine’s Premiership; Lafite Rothschild, Mouton Rothschild, Latour, Margaux & Haut Brion) from the region as well as a handful of highly regarded Chateaux from the Right Bank (notably Cheval Blanc, Ausone, Petrus). From time to time we may look to some ‘super seconds’ (a select number of ‘Second Growths’) or top Burgundies.
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We concentrate on the best wines from outstanding vintages and those wines with very high grades; all wines are graded on a system devised by Robert Parker Jr (by far the world’s most influential taster) and his scores are universally accepted as the benchmark for the quality of the wine. A score of 95+/100 is a good rule of thumb to identify an ‘investment grade’ wine.
Do I need to be an expert?
Absolutely not. Our experience and expertise is in identifying and sourcing wines which, in our opinion, have strong investment potential. We will gladly provide you with some suggestions based on your requirements. A little healthy interest in wine never goes amiss, but beware - there's nothing we like talking about more than the dreaded grape juice!
What are the risks?
The rate and increase in value is particular to the specific wine, and some wines go up (or down!) faster than others. Like any traded commodity, wine can go down in value as well as up (as demonstrated with the credit crunch in the latter part of 2008.) The investment wine market is not regulated by the Financial Services Authority.
Where will my wine be stored?
We will store your wine for you at our own secure bonded warehouse facility within London City Bond at Tilbury Docks. Your wine will be identified via a unique ‘rotation’ number. Whilst held in professional storage, your wines are insured at full replacement value.
Can I take delivery of my wine?
Of course, although you will incur excise duty and VAT which cannot be reclaimed upon resale. We would nonetheless recommend keeping the wine in bond for investment purposes, as it will demonstrate to future buyers that the wine has been stored in optimum conditions, and so ensure its appeal to the widest possible market.. Also, there is always the danger you will drink it if you take it home! (this is known as ‘itchy corkscrew syndrome’)
How much do I need to invest?
There is no minimum investment, but it is crucial to invest in a top Chateau from a great vintage, and these wines don’t come cheap. In practical terms, investment begins from around £5,000.
How quickly can I sell?
You can sell whenever you like, as the best wines of Bordeaux enjoy a ready secondary market. Whilst there are often impressive short term gains (our wines have increased by as much as 85% in the last 12 months alone) as a rule of thumb though, we would recommend a hold of at least five years.
Is wine really free from Capital Gains Tax?
Generally yes, as the Inland Revenue regard wine as a ‘wasting asset’. However, the rules on this can be complicated and we would recommend consulting a tax expert or financial advisor for clarification.
What happens if you go bust?
Ahem, well - you will hold full title to your wine, so the fortunes (or otherwise) of Albany Portfolio Management have no bearing on your investment. Annual stock reports will be provided and each of your cases will be marked with your name and account number.
Can I view my wine?
We would be delighted to accompany you on a visit to the bonded warehouse. Please provide at least 48 hours notice.
