At a time of huge financial stresses and the onward march of inflation, canny investors have continued to find value in so-called alternative investments. The success of assets like watches, fine art, classic cars and whisky ebbs and flows from year to year, but it is the remarkable stability of Fine Wine which makes it worthy of serious inspection.

At Clos Fine Wine we know the strength of a diversified portfolio of wines which as physical assets act as a hedge against both risk and inflation. In uncertain times, more recently global pandemic and the war in Ukraine, the key Fine Wine markets have remained buoyant, retaining value even as other markets tumble.

Not only does Fine Wine have a consistently low correlation to equity markets, burnishing its credentials as a true investment diversifier, but it is also driven by the notion of inverse supply, that over time as bottles from a sought after producer are drunk or discarded, the wine improves with age and becomes ever more desirable, even as stocks dwindle, pushing up value. Inverse supply for Fine Wine is matched by no other physical asset market (discounting rare single cases of whisky), making it one of the key drivers for portfolio success.

Wine has long been viewed by HMRC as a ‘wasting chattel’, rather like a thoroughbred racehorse in that there is inherent risk across the life of the asset, and so it is currently viewed as Capital Gains Tax exempt, though a strict framework applies for this and investors should always consult the views of a tax specialist.

Should you be interested in investing in Fine Wine then our approach is different to all other competitors, rather than asking for your capital and telling you what you’ll get in return, we consult on your investment aims (length off investment, appetite for risk etc) and produce a detailed, data-driven proposal. Only once you are satisfied with and clear about our rationale do