Fees Explained
Commission and Fees – The '80/20' Equation
A transparent, four-step process from initial deposit to portfolio management.A transparent breakdown of how your investment is allocated to maximise returns while ensuring your portfolio is professionally managed and protected.
The Fine Wine Market is not regulated by the FCA. On that basis and in part the value for a case of wine can vary by up to 15% in its purchase price. This depends of course who you are buying the wine stock through.
Some traders and Brokers are able to access stock at lower prices than others. With demand and supply amounts changing on a daily basis and the ability of your broker to access the cheapest available prices, this will impact on what you pay for a case of wine.
At IWI we believe due to our sourcing resources, we will for the most part be able to purchase wines at the lower/cheaper end of the market price and therefore provide you with greater opportunities to profit in your Investment moving forward.
We do not hold wines meaning we have the flexibility to buy stock as and when orders by clients are made knowing that we are purchasing through our research the most investment worthy wines available on any particular day.
The Third Party Alternative
Third party brokers will charge you sell-on fees at around 12%
You will need to pay your own storage and insurance costs which can be around 6% of the end value over your investment term
Note
This is not to say that we have charged you 15 years storage and Insurance fees upfront! The real amount charged is for about 2 years. Any further years are paid by IWI through net profits that we will earn.
No Commission on Sale
IWI does not charge you a commission upon sale (saving around 12%
Storage & Insurance Included
Fees paid upfront give us the ability to cover your Storage and Insurance for up to 15 years
Indeed, the more that you invest then the more profit you can make above and beyond using the services of a traditional third party
Herewith, we have provided you with examples for £50,000 and £100,000 mixed region portfolios with regards to what services and fees you can expect to pay with an end figure provided using a 7 year holding.
£50,000 Portfolio Comparison
Example 1: Third Party Broker
£50,000
£47,000
The broker doesn't reveal they purchased at ~6% less than charged to you
£47,000
£4,700/year
£32,900
£79,900
Deductions:
-£9,588
-£3,000
£67,312
£17,312
34%
+5% per year
Example 2: Through IWI
£50,000
£40,000
£10,000
IWI does not mark up the wine price – you pay what we pay
£40,000
£4,000/year
£28,000
£68,000
IWI Benefits:
£0
INCLUDED
£68,000
£18,000
36%
+5.2% per year
£100,000 Portfolio Comparison
Example 3: Third Party Broker
£100,000
£94,000
The broker doesn't reveal they purchased at ~6% less than charged to you
£94,000
£14,100/year
£98,700
£192,700
Deductions:
-£23,124
-£6,000
£163,576
£63,576
63.5%
+9% per year
Example 4: Through IWI
£100,000
£80,000
£20,000
IWI does not mark up the wine price – you pay what we pay
£80,000
£12,000/year
£84,000
£164,000
IWI Benefits:
SAVING 12%
INCLUDED
£164,000
£64,000
64%
+9.1% per year
In Summary
You have seen that Investing with IWI can offer greater profit opportunities than using the services of third parties.
However the greater profit margins achieved could and should be slightly bigger than the examples set above. This is because IWI offers a multitude of services as clearly detailed within this website which when combined together can produce even more significant positive results.
Ready to Start Investing?
Speak with our team to learn more about how we can help you build a profitable wine portfolio.
