Invest in a portfolio of highly desirable wines
Invest in farmland
Investments
$35,000
Minimum investment levels start at $35,000 for the Premier Cru tier and go up to £1 million for the Black Tier.
Investments
$15,000
The minimum investment on AcreTrader varies by listing, generally starting at $15,000, with some past deals ranging from $3,000 to $100,000. This range is determined by factors such as the size of the offering and the price per acre.
Moderate Risk
3/5
Investing with Cult Wine Investment involves market risks, potential fluctuations in wine prices, and variable liquidity, which could impact the value and sale of the assets.
Moderate Risk
3/5
Investing in AcreTrader involves risks like casualty, condemnation, and eminent domain, common to real estate investments.
Minimum Liquidity
1/5
Cult Wine Investment allows for portfolio liquidation, typically within 8 to 12 weeks, through sales to global trade, collectors, and consumers.
Minimum Liquidity
1/5
AcreTrader investments are considered illiquid, meaning investors should be prepared to hold their investments for the specified duration. While it may be possible to sell shares in a private transaction after this period, there is no established market for them, making resale uncertain.
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Moderate Return
8 %
Cult Wine Investment has achieved a compound annual growth rate of 8% since 2009.
High Return
9.4-30.3 %
The returns from investing in AcreTrader vary, with historical examples showing realized internal rates of return (IRR) ranging from 9.4% to 30.3% over holding periods between 1.7 and 4.2 years. These variations highlight the potential for both moderate and significant returns, depending on the specific investment and market conditions.
Long-term Investment
3-10 years
Cult Wine Investment advises a 3-5 year minimum investment term, ideally extending to 5-10 years for optimal results.
Long-term Investment
3-10 years
AcreTrader investments target hold periods of 3 to 10 years, though this can vary based on market conditions and sale opportunities. Properties may sell earlier or extend beyond the target period, depending on whether favorable buying offers arise or if market conditions dictate a longer hold.
Who can invest
International
Cult Wine Investment accepts investors worldwide with no geographic restrictions. Minimum age requirement: 18 or legal drinking age in your country.
Who can invest
United States
Investing on the AcreTrader platform is limited to accredited investors, as defined by SEC regulations. Non-U.S. citizens can invest if they are legal residents of the United States.
Moderate Volatility
3/5
Fine wine values can fluctuate due to various factors, resulting in lower volatility compared to traditional markets, yet still subject to changes in market conditions.
Moderate Volatility
3/5
Farmland assets on AcreTrader typically exhibit lower volatility compared to stocks and bonds, offering a more stable investment option due to the steady demand for agricultural products and the land's intrinsic value.
Regulation and audits
Not Regulated
Wine investment is not regulated by financial authorities such as the Financial Conduct Authority or the Securities Commission.
Regulation and audits
SEC Regulated
AcreTrader is regulated by the Securities Exchange Act of 1934, SEC rules, FINRA rules, and state laws, reflecting its commitment to transparency and investor protection. As a registered Broker-Dealer, it must adhere to strict financial standards, undergo regular audits, and comply with ethical practices to maintain its standing and ensure the security of its investors' assets.
Insurance
Yes
Cult Wine Investment's stored wines are fully insured against physical loss or damage, kept in a secure facility near London.
Insurance
Yes
AcreTrader does not explicitly mention specific insurance coverage for investments on its platform. Generally, real estate investments, including farmland, are insured against risks like natural disasters and fire to protect investment value.
Payouts
Dividends
AcreTrader may distribute net cash from annual income to investors after operating expenses, typically once a year in December. These distributions, based on pro rata ownership, are not guaranteed. If distributed, funds go to the investor's AcreTrader wallet or, for SDIRA or IRA accounts, to the custodian.
Withdrawals
To receive funds from Cult Wine Investment, investors sell their wine, typically within 8-12 weeks, and then the proceeds are returned to them.
Withdrawals
Investors can typically get their money back when the property they've invested in is sold at the end of its expected hold period, which may range from 3 to 10 years.
Extra Fees
No
Cult Wine Investment charges an annual fee based on the investment tier, with the Premier Cru tier at 2.75%, Grand Cru at 2.50%, Cult Cru at 2.25%, and Black Tier at 2%. Fees are divided into monthly payments calculated from the portfolio's end-of-month value, rather than an annual lump sum.
Extra Fees
Yes
AcreTrader charges investors initial closing costs around 2% of the offering value and an annual 0.75% servicing fee of the land's value for management. The primary revenue comes from a 5% commission on the farm's sale, charged to the seller. There are no “carried interest fees.” Fee structures vary by deal, so reviewing offering documents is recommended for specifics.
Taxes
Annual Statement
Cult Wine Investment assists with tax documentation upon request or through a Relationship Manager for higher-tier investors.
Taxes
Tax Form
AcreTrader aims to provide K-1 tax forms electronically by early March, although delays can occur due to external reporting needs. Tax treatment varies: gains on land sold within a year are taxed at ordinary income rates, while longer holdings are taxed at capital gains rates. Depreciation on buildings or equipment may affect taxes.