Introducing the 1855 Club - an investment in fine wine
The global demand for fine wine has increased enormously over the last 2 decades And this growth looks likely to continue with new emerging markets such as Russia, India and China now looking to buy Bordeaux's finest wines.
Wine can, and often has, out performed the FSTE 100 and the Dow Jones, offering significant returns without the volatility of the stock market.
Historically the best performers for wine investments are the top 30 Châteaux in Bordeaux. Bordeaux produces some of the best wine in the world and still remains the only wine in the world with a wine classification system which dates back to 1855 and remains in its entirety today.
Bordeaux Fine Wine is now recognised as a real alternative asset class. It is uncorrelated to the FTSE and is a finite product. Demand is outstripping supply as a Château can only produce a finite quantity each year which then diminishes over time as the wine is consumed. In turn this leads to limitations on availability and prices can subsequently rise. The fine wine market is growing. It’s worth approximately £500 million a year in the UK and a sizeable part of that goes straight into the cellar.
Source: www.liv-ex.com
The global demand for fine wine has increased enormously over the last 2 decades. This is likely to continue with new emerging markets such as Russia, India and China now looking to buy Bordeaux's finest wines. Wine can, and often has, out performed the FSTE 100 and the Dow Jones, offering significant returns without the volatility of the stock market. There are inherent risks with most opportunities and professional advice should always be sought, but as an asset backed company The 1855 Club could be seen as a more limited risk opportunity when compared with more general EIS offerings.
Historically the best performers for wine investments are the top 30 Châteaux in Bordeaux. Bordeaux produces some of the best wine in the world and still remains the only wine in the world with a wine classification system which dates back to 1855 and remains in its entirety today. Their experience in wine making goes back many centuries with their traditional methods of wine making being handed down from generation to generation. Their wines can be more complex than most and we have been enjoying it since Henry II married Eleanor of Aquitaine, bringing claret (or Clairet as it was known then and still remains in production) with her as part of her dowry.
Now for the first time you can invest in wine under the EIS.
Under the Enterprise Investment Schemes (EIS) there is a provision for income tax relief of 20% if you hold the investment for at least 3 years. In addition if you have previously crystallised capital gains attracting a tax rate of 40%, the gain can be deferred if you invest into an EIS company within 3 years of creating the gain. You still have to pay capital gains tax on the deferred gain but only when you sell the shares in an EIS company. However under current rules this is at a reduced rate of 18% resulting in a further saving of 22% on past gains.
Shares held in EIS companies for the relevant period are also exempt from capital gains tax and inheritance tax. The recent budget has further enhanced their benefits as investors now have the option to treat an investment made in this tax year as eligible for relief against their tax bill for 2008/09, so the benefits are received earlier.
Nick Stephens a recognised wine expert has now created the 1855 Club a company trading in Fine Wine under the EIS rules. The 1855 Club has been designed to offer a unique opportunity as a first of its kind, for those of you who are interested in investing in Bordeaux Fine Wines.
The ethos of The 1855 Club is not only to obtain good returns for shareholders but also to deliver knowledge and enjoyment to those who wish to gain a wider appreciation of great cuisine and the world of Bordeaux Fine Wine through visits to the top Châteaux, dinners, tastings with the wine makers, quarterly newsletters - and even the grape harvest should you be so inclined!
Not only is it an attractive lifestyle investment but shareholders can participate and influence the success of the business – how many investments do you know of where you can do that?
For further information please complete the form below.
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