Fine wine investment scheme uncorked

An Enterprise Investment Scheme (EIS) trading in wine of 'very good to outstanding vintages' will offer investors capital growth with low volatility, according to its provider.

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The Wine Enterprise Investment Scheme (TWEIS) is seeking to raise £2 million from investors and will trade in the physical stock of rare wines.

The company hopes to combine the tax advantages of an EIS with ‘investor appetite for physical assets which boast low volatility when compared to the equity markets, gold or oil’.

The scheme will be run by Anpero Capital, which launched The Wine Investment Fund in 2003.

In a statement, TWEIS said it would benefit from Anpero’s experience in the sector.

Andrew della Casa, director at TWEIS, commented, ‘TWEIS offers investors not only exposure to a lower risk, tangible asset, but also diversification through an asset class that has historically generated relatively high returns combined with low volatility, thus producing higher risk-adjusted returns than other assets.

‘It is also highly tax efficient with, incidentally, all the EIS benefits accruing entirely to the investor,’ he added.

The scheme has a minimum investment of £10,000 and a performance fee of 20 per cent of net profits if it achieves returns over a set watermark. It is eligible for income tax relief and exempt from capital gains tax.

It is the second fine wine EIS to be launched in quick succession.

Investment group Ingenious has just confirmed the launch of its Vindemia 2 EIS fund, following the successful close of the first Vindemia EIS fund in July 2011.

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