Cult Wines, a global fine wine investment adviser, as opened a new Singapore office in response to increasing demand for investing in fine wine among local and regional-based clients.
Cult Wines’ Singapore opening further strengthens the firm’s growing presence across Asia, having established offices in Hong Kong and Shanghai in 2016 and 2017 respectively. The new office marks Cult Wines’ foray into the burgeoning Southeast Asian market, to meet the surge in demand for investment-grade fine wine among buyers based in Singapore, Thailand, Indonesia, Malaysia and the Philippines.
A network of partnerships with leading global and regional banks, private wealth managers and investment advisors has been key to Cult Wines’ growth. In Singapore, Cult Wines has established relationships with a large number of private banks and wealth managers over several years, which have proved to be very successful for the end clients of these institutions.
Sam Mudie has been appointed General Manager of the new office and will be relocating from Cult Wines’ London headquarters, where he has spent six years as Senior Portfolio Manager.
Tom Gearing, Managing Director of Cult Wines, says: “The launch of a new office in Singapore underlines the success we have had in building an investor base here and the tremendous growth potential we’re seeing throughout the wider region. With proven expertise of the fine wine market and in portfolio construction, Sam and his team are well-positioned to ensure the business goes from strength to strength, providing local and regional investors with access to fine wine investment opportunities.
“With its low correlation to asset classes such as equities and bonds and track record of capital appreciation, investment grade fine wine is not just a passion asset but a proven portfolio diversifier.”
Steve Knabl, COO and Managing Partner of Swiss-Asia Group, adds: “We have partnered with Cult Wines for a number of years in Hong Kong and more recently in Singapore. Increasingly, our clients are looking to diversify into alternative assets, and investment grade wine is becoming ever-more popular as an asset class. Cult Wines has impressed us with their high levels of customer care and analytical approach in view of maximising client returns.”
For the financial year ending 30th August, Asia was Cult Wines’ fastest growing region, with revenues rising by 84 per cent to £20m / S$35.8m. Within this, the South East Asia sub-region grew by 100 per cent with double and treble figure increases across Singapore, Thailand, Indonesia, Malaysia and Philippines.
Fine wines that are considered to be investment-grade are increasingly being seen as a stable, defensive asset class, and recent research by the company highlights how the asset has consistently outperformed equities and gold during periods of economic uncertainty. The report also reveals distinctive qualities that protect investors from some of the risks inherent in an equity-based portfolio.