1 General Description
Waud Investment Wines Ltd acts as both broker and manager for Subscribers and Individual Subscribers who wish to invest in wine.
2 Definitions
WIW – Waud Investment Wines Limited (company number 9458972) of 4-6 Dudley Road, Tunbridge Wells, Kent TN1 1LF trading at 44 Loman Street, London SE1 0EH
Individual Subscriber – an individual or limited company or limited liability partnership investor
Syndicate Subscriber or Syndicate Subscribers – a group of more than one Individual Investor
Subscriber or Subscribers – Individual Subscriber and Syndicate Subscribers who have appointed WIW
Wines – the wines chosen purchased by Subscribers on the recommendation of WIW and managed by WIW
Written Instruction – any instruction from a Subscriber given by letter or electronic submission
Fees – 10% of the money subscribed by each Subscriber for the fees of WIW covering administration and portfolio updates.
3 Investment Criteria and Strategy
The objective of WIW is to advise Subscribers on the investment in wines of superior quality from established producers and of very good to outstanding vintages and the achievement of capital growth from those investments, as measured in Pounds Sterling, and to facilitate the purchase, storage, distribution and management of the Subscribers acquisitions.
Typically En Primeur investments are kept in bond for 5 years before sale.
All advice and recommendations will be given in writing by electronic submission.
Wines suitable for purchase will be limited production wines produced under a recognised system of classification. WIW will seek to find and recommend wines primarily from the Bordeaux wine region of France. WIW aim for diversification of purchases via a selection of producers and highly rated wines from vintages rated at least as very good to outstanding. Undue concentration on one producer or one vintage will be avoided.
WIW will generally only recommend purchases from;
- the most reputable and highly sought after vintages;
- only wines that have excelled themselves in that vintage;
- wines with the best reputation for ageing ability;
- stock that has been purchased direct from the Château or either perfectly stored in a bonded warehouse;
- wines that have not just recently risen disproportionately in value;
- whole units where a unit means one original case of either 12 x 75cl or 6 x 75cl bottles or 6 x 150cl or 3 x 150cl magnums or equivalent large formats.
Waud Investment Wines will not recommend:
- wines that are over-hyped and do not have a recognisable track record;
- wines that are coming to the end of their natural life span;
- split cases (Unless Domaine Romanée Conti);
- wine with US slip labels or US slip labels removed;
- wine with no traceable provenance
Wines will normally be bought in Bordeaux, France (“Bordeaux”) or in the United Kingdom (“UK”).
Wines will be stored under optimal and secure conditions at a professional, UK wine storage facility and will be insured at full replacement cost. Wines will not be moved, sold or traded except in exceptional circumstances (and only at the Subscriber’s Written Instruction).
4 Syndicate Subscribers
Syndicate Subscribers will appoint WIW by completion of the application form, agreement to these terms and conditions and confirmation of the lead party in each syndicate.
All commitments and deposits (10% of commitment) must be received by the close of business on 1st June each year for that years En Primeur campaign.
If an application is accepted, WIW will write to the Syndicate Lead Party at the email address given on the application form confirming the opening value of that particular investment.
If a subscription is received in a currency other than Pounds Sterling, it will be converted upon receipt by the WIW into Pounds Sterling at the Syndicate Subscriber’s cost at the then prevailing exchange rate available to the Syndicate Subscriber.
The subscription proceeds are deposited in the WIW Client Escrow Account.
As soon as is reasonably practicable following the receipt of the subscriptions, WIW will use the subscription proceeds of the Syndicate Subscriber less the applicable fees to buy the Wines for the Syndicate Subscriber for investment. WIW will buy the Wines for the Syndicate Subscriber at a time and in a manner determined in line with the Syndicate Subscribers instructions.
WIW after Written Instruction from the Syndicate Subscriber, will sell all or some of the Wines held in the Syndicate Subscriber portfolio in line with their specific instructions.
Upon sale of all or some of the Wines, the realised profit (if any) of the Wines after deduction of any Fees outstanding will be distributed to the Syndicate Subscribers Distributions will be made by cheque or credit transfer and will be sent to the lead member of the Syndicate Subscriber at the address given on the subscription application form. If a Subscriber changes address WIW must be notified in writing.
No distribution will be made without Written Instruction from the Syndicate Subscriber.
5 Individual Subscriber
For Individual Subscribers a minimum of £5,000 is required as the minimum subscription otherwise the terms of the Syndicate Subscribers apply.
6 Bank Accounts
WIW operates a client escrow account. WIW will keep detailed records which will be available to the Subscribers and which will define the actual combination of cash and assets in the portfolio at any one time.
7 Fees
WIW shall receive a management fee of 2.0% per annum of any subscription, which shall be paid from the Subscribers five-year investment in advance. No portion of such management fee shall become repayable in any circumstances.
In addition to the management fee WIW shall receive a performance fee following the successful sale of Wines. The performance fee shall be payable at the rate of 10.0% of increase between the sale price of the Wines sold from the acquisition price.
WIW is remunerated from the management and performance fees. No other fees or charges will be levied by WIW to its Subscribers.
Liv-ex Charges
Where possible we will sell syndicate wines through our private channels. Ie: other syndicates, other private clients, or Waud Wine Club may purchase stocks.
WIW are members of Liv-ex – which is the global marketplace for the buying and selling of fine wine. The Liv-ex commission fees are taken from the price the goods are sold at.
Commission on sales and purchases are charged at 2% as standard. There is an additional £4 + VAT settlement charge.
Storage Charges
Your wines are stored in temperature-controlled conditions at our LCB Vinotheque bonded warehouse.
Storage costs per case per year (6×75): £5 + VAT
Storage costs per case per year (12×75): £10 + VAT
8.1 If the Subscriber fails to make any payment on the due date then, without prejudice to any other right or remedy available to WIW, WIW shall be entitled to:-
- cancel the order or suspend any services to the Subscriber;
- appropriate any payment made by the Subscriber to such of the Wines as the Supplier may think fit (notwithstanding any purported appropriation by the Subscriber); and
- This condition applies if:-
- the Subscriber fails to perform or observe any of its obligations hereunder or is otherwise in breach of the terms and conditions; or
- the Subscriber becomes subject to an administration order or makes any voluntary arrangement with its creditors (within the meaning of the Insolvency Act 1986) or (being an individual or firm) becomes bankrupt or (being a company) goes into liquidation; or
- an encumbrancer takes possession, or a receiver is appointed, of any of the property or assets of the Subscriber; or
- WIW reasonably apprehends that any of the events mentioned above is about to occur in relation to the Subscriber and notifies the Subscriber accordingly.
- Liability
- WIW provide advice, recommendation and management only and shall not be responsible for any losses or consequential losses suffered by any Subscriber
- Communications
- All communications between the parties about the service shall be in writing and delivered by hand or sent by pre-paid first class post or sent by electronic mail:
- (in the case of communications to WIW) to its registered office or such changed address as shall be notified to the Subscriber by WIW; or
- (in the case of the communications to the Subscriber) to the registered office of the addressee (if it is a company) or (in any other case) to any address of the Subscriber set out the subscription application or such other address as shall be notified to WIW by the Subscriber.
- Communications shall be deemed to have been received:
- if sent by pre-paid first class post, two Business Days after posting (exclusive of the day of posting); or
- if delivered by hand, on the day of delivery; or
- if sent by electronic mail on a Business Day prior to 4.00 pm, at the time of transmission and otherwise on the next Business Day.
- Force Majeure
- In the event that either party is prevented from fulfilling its obligations under these terms and conditions by reason of any supervening event beyond its control including but not limited to war, national emergency, flood, earthquake, strike or lockout (subject to Sub-clause 11.2) the party shall not be deemed to be in breach of its obligations under these terms and conditions. The party shall immediately give notice of this to the other party and must take all reasonable steps to resume performance of its obligations.
- Sub-clause 11.1 shall not apply with respect to strikes and lockouts where such action has been induced by the party so incapacitated.
- Each party shall be liable to pay to the other damages for any breach of these terms and conditions and all expenses and costs incurred by that party in enforcing its rights under these terms and conditions.
- If and when the period of such incapacity exceeds 6 months then this Agreement shall automatically terminate unless the parties first agree otherwise in writing.
No waiver by WIW of any breach of the terms and conditions by the Subscriber shall be considered as a waiver of any subsequent breach of the same or any other provision.
If any provision of these terms and conditions is held by any competent authority to be invalid or unenforceable in whole or in part the validity of the other provisions of these terms and conditions and the remainder of the provision in question shall not be affected thereby.
A person who is not a party to the terms and conditions shall have no rights under the Contract pursuant to the Contracts (Rights of Third Parties) Act 1999.
- Governing Law and Jurisdiction
These terms and conditions shall be governed by the laws of England and Wales and the parties agree to submit to the exclusive jurisdiction of the English and Welsh courts.
