Question 1

Is the fund regulated?

Accepted Answer

Not in the sense of being supervised. LeVinum OÜ, the fund's management company, is registered as a small alternative fund manager with the Estonian Financial Supervision and Resolution Authority (12.09.2022). Registration is not an activity licence: the management company holds neither a fund manager nor a small fund manager activity licence, and the Authority does not supervise its activities.What protects investors is independent and contractual rather than supervisory:the fund's assets are valued weekly against Liv-ex market prices;an independent auditor verifies the net asset value and physically inspects 10% of the fund's wines each year;LeVinum OÜ invests in the fund on the same terms as its investors.Investing carries risk. The fund uses leverage of up to 65% of the fund's volume, and previous performance is not a guarantee for future performance.

Question 2

How is the currency risk of the fund hedged?

Accepted Answer

The WineFortune Premium Selection LP Fund has only one type of unit, all denominated in euros. Most of the fund's assets are also denominated in euros.

Question 3

Does the fund use leverage?

Accepted Answer

Yes. The fund uses leverage up to 65% of the fund's volume.

Question 4

What is the size of the fund and how is the diversity of the fund ensured?

Accepted Answer

The volume of the fund is currently about € 250,000, of which 100% are wines purchased on the free market. Burgundy, Champagne and Italian wines, as the most actively traded wines on the market, account for more than 60% of the fund's portfolio. To mitigate the risks, the fund will initially invest in more than 100 different wines. No position (wine, producer) may exceed 10% of the fund's assets. The wines come from the world's top producers, mainly from France, Italy and the USA.

Question 5

What is the repurchase period?

Accepted Answer

The fund is closed, the fund does not repurchase units.

Question 6

Is it possible for an investor to order the fund's wines for personal consumption?

Accepted Answer

No. And yes, you can, if the investor makes an offer to the fund for the wine you want, which satisfies the fund's performance expectations set by the management company.

Question 7

What are the fund's fees and how is the management company motivated?

Accepted Answer

The fund uses a classic fund fee structure: a 1.5% management fee on invested capital and a 20% performance fee limited to a “high watermark” so that investors never have to pay double fees. In order to ensure that the interests of the management company coincide with the investors, Levinum OÜ is also an investor in the fund.

Question 8

What happens if a management company leaves or goes bankrupt?

Accepted Answer

The fund is designed in such a way that in the event of the departure or bankruptcy of the management company, the fund will remain intact, as all assets under management are actively tradable. As the management company is also an investor in the fund, it has no interest in leaving without first securing an equivalent replacement.

Question 9

How is a conflict of interest between the fund and LeVinum OÜ ruled out?

Accepted Answer

The WineFortune Premium Selection LP Fund has strict internal rules to protect the interests of investors.a. The correctness of the calculation of invoices and market value is checked by the auditor.b. The management company LeVinum OÜ is registered as a small alternative fund manager with the Estonian Financial Supervision and Resolution Authority (12.09.2022). Registration is not an activity licence and the Authority does not supervise the fund's activities, so investors are protected by the fund's own independent and contractual safeguards The investment strategy of the WineFortune Premium Selection LP Fund is independent of the interests of LeVinum OÜ;The management fees of Levinum OÜ as a management company are below the standard margins of wholesale trade (1.5% management fee vs. 5% + in wholesale trade; 20% performance fee, which depends on achieving the minimum return allowed to investors).Wines purchased from the producer are bought at a wholesale price at a discount and directly, without intermediaries, by the fund.The Fund's Supervisory Board (Rein Kasela, Samuil Angelov, Raimonds Tomsons) adds invaluable insight into the dynamics of the fine wines market, including:changes in consumer behaviour among top customers in the HoReCa sectoran overview of wine trade flowsdirect contacts with wine producers to assess wine quality and investment potential

Question 10

Are storage, transportation and other costs covered by management fees?

Accepted Answer

These costs are covered by the purchase price of the wine. The wines are purchased either from an excise warehouse or with price insurance.

Question 11

What is the minimum investment in the fund?

Accepted Answer

It is a closed-end fund, which means that the number of fund units is limited - in this case 2,500,000 units. The units are of the same type and denominated in euros (which is the fund's main currency, as most investments are also in European Monetary Union countries). The minimum required investment is 1 €.

Question 12

In which wines does the fund invest?

Accepted Answer

The WineFortune Premium Selection Trust invests in wines purchased from the open market, which the management company estimates have the greatest potential for price growth.The fund only invests in investment grade wines that have been rated 95+ points (or equivalent) by at least 3 top critics. Investment grade wines generally come from the wine regions of Burgundy, Bordeaux, Champagne or Tuscany, and to a lesser extent the United States and elsewhere.

Question 13

What are the fund's biggest investments and the most valuable wines?

Accepted Answer

The WineFortune Premium Selection Trust regularly provides investors with an overview of the fund's overall strategy and placements by region, vintage and wine variety. We also provide an overview of major transactions.

Question 14

How much of the wine is sold in the fund each year?

Accepted Answer

About 10% to create liquidity to pay dividends.

Question 15

What is the share of wines with long-term maturation potential in the fund?

Accepted Answer

Approximately 90% of the fund's assets have a maturity of more than 10 years and 75% have a maturity of more than 15 years.

Question 16

How is the fair price of the fund's investors ensured if the fund buys wines through LeVinum OÜ?

Accepted Answer

The fund does not buy wines through Levinum OÜ. The fund buys all assets directly.

Question 17

Who values the fund's assets?

Accepted Answer

The fund's accountant / manager evaluates the fund's assets on a weekly basis using Liv-ex market prices. Each year, the auditor inspects 10% of the Fund's physical assets to ensure their quality, as well as the accuracy of the calculation of the net asset value. These two independent companies ensure that the interests of investors are protected at all times.

Question 18

How is the investor protected against counterfeiting and fraud for wines purchased on the open market?

Accepted Answer

In the case of investment wines purchased on the open market, the Fund makes every effort to verify and certify the historical background of the assets.

Question 19

Is there a difference between the prices of wines with historical documentation and those of undocumented wines on the secondary market?

Accepted Answer

Yes, it is increasingly important. Investors in quality wine want to be sure that the wine in the bottle is really what is allowed on the label. There have been a number of high-profile scandals and lawsuits involving fraud and counterfeiting that have affected the wine market. As a result, concerns about the documentation and security of the historical background of wines have come to the fore for investors. As investors pay significant sums for specific wine brands over 10 years old, documentation guaranteeing the history of wine is very important for investors, top restaurants and wine lovers.

Question 20

Why consider investing in wine?

Accepted Answer

The principle of supply and demand makes wine a good investment object. Over time, as the wines ripen and reach the "drinking window", the number of the best wines and vintages on the market decreases because they are consumed too early. The declining supply of the most sought-after wines is driving up prices. The WineFortune Premium Selection LP Fund targets wines with the best potential for price growth.As the wine market has its own operating dynamics, this "alternative" investment has a low correlation with the performance of financial assets such as shares and bonds. This is important for investors who want to diversify their portfolio to reduce risk. Read more in our blog post: "Fine wine vs alternative assets - what are the differences?"

Question 21

What does the red sign %/€ next to some wines on the marketplace and in your portfolio?

Accepted Answer

It means that this wine is bought out already with 20% VAT. It's important that when you buy that wine, then it can't be sold to companies, because they buy only in bond wines at 0% VAT. These wines are meant for yourself in future or already now for enjoyment.

Date	NAV per share	Assets under management
2022-10-17	1€	608,696€
2023-01-02	1.03€	653,197€
2024-01-01	1.07€	789,782€
2025-01-06	1.04€	765,384€
2026-01-05	0.94€	740,488€
2026-08-31	0.88€	703,885€

Region	Share by value	Cases
Bordeaux	22.6%	227
California	20.1%	110
Tuscany	17.7%	185
Champagne	11.9%	53
Burgundy	11.4%	40
Rhone	5.6%	36
Piedmont	4.5%	37
Central Valley	1.5%	19
Mendoza	1%	16
South Australia	0.8%	13
Castilla y Leon	0.8%	4
Yunnan	0.5%	3
Veneto	0.4%	6
Aconcagua	0.3%	5
Western Australia	0.3%	2
Coastal Region	0.3%	3
Oregon	0.2%	3
Hawke's Bay	0.1%	1
Cape South Coast	0.1%	2

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Fine Wines Asset Class

First Fine Wine Fund*

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Funding round

Published NAV history

What the fund holds

Progress of the funding round