LONDON, April 21, 2022 /PRNewswire/ -- WineCap has today announced it is opening wine investing to a wider range of clients by using new technology to substantially reduce charges, increase transparency and boost returns in the fast-growing market.
London-based WineCap's proprietary technology analyses over 400,000 wine prices a day to identify the right, undervalued wines to buy and sell across the global market at the right time and price. The company has developed an algorithm that aggregates the most influential critics' scores into a single number for clearer insight. By automating the process, WineCap can pass large cost savings to investors.
Unlike other wine investment firms which charge annual management fees, performance fees and trading costs, WineCap levies a modest annual storage fee based on the number of bottles in a portfolio and a 5% commission on sales.
Competitor annual fees average at around 2.5% and are based on market values during the time an investor holds the wine. WineCap investors with a £10,000 portfolio could save £2,500 in management charges over 10 years before any capital appreciation is considered and up with £18,550 in total with performance and trading costs added.
WineCap clients can choose from five different investment portfolios to reflect their risk appetite and benefit from a technology-driven service which analyses past data to predict future trends. Wines are stored in bonded warehouses in the UK and Europe under carefully regulated temperature, and humidity environments.
WineCap's US and Bordeaux-based parent, Westgarth Wines, has a 10-year investment track record and has comprehensively outperformed the Liv-Ex 100 and the Liv-Ex 1000 indices over the last three, five and 10 years, with a five-year hold delivering a 70% compounded annual growth on a £10,000 investment.
WineCap also benefits from Westgarth Wines' heritage as a wine merchant by leveraging its network of leading producers across the world. Westgarth Wines' buying power means WineCap can pass on highly competitive prices on rare and sought-after vintages to clients.
Alexander Westgarth, CEO at WineCap: "By removing annual management and performance fees and reducing the entry level portfolio to £5,000, we're challenging the status quo and making wine investing more affordable and accessible to all types of investors. Lower fees mean WineCap investors can enjoy more of the returns produced by their portfolios while benefiting from cutting-edge technology and a highly knowledgeable, efficient and personalised service."
"Following a very strong 2021, where average sector returns averaged 16%, we expect fine wine to continue to post a healthy performance and deliver robust returns this year and beyond. In periods of market volatility and high inflation, fine wine can benefit from being uncorrelated to mainstream asset classes and can act, much like gold, as a safe heaven."
WineCap provides investors with regular and detailed valuation reports, and expert consultations. It has also launched the WineCap Academy, an online wine education resource providing investors with a wealth of high-quality content including blog posts, webinars, interviews and videos as well as general advice suitable for beginners to experts.
To mitigate the risk of fraud, WineCap runs a risk profile on every case of wine added to the inventory and carries out additional authenticity checks internally and by independent advisers. Additional protection is provided by the company's tech platform, to ensure each bottle's authenticity.
WineCap's annual storage fee is based on the number of bottles it stores and charges 5% commission on the market value of the portfolio when clients decide to sell. It also offers collection management, storage solutions, fine wine valuation services and support with sourcing rare and hard to find wine.
