Fine Wine as tasteful
addition to your portfolio
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Fine Wine for your portfolio
The history of wine begins as early as when humans began to colonise the land. The earliest traces of viticulture can be found around 11,000 years before our time in the South Caucasus. Wine has always had a special status. Honoured in ancient times as the drink of the gods and sacrificed to them, the vine is still one of the most important cultivated plants today.
Fine wines are not only a treat for the palate, but also have potential as an investment. Anyone who invests in a bottle of wine for enjoyment purposes and allows it to mature has a distinct, epicurean - but long-term - return expectation.
If you focus on the value of wine beyond its flavour, it quickly becomes clear that a similar but completely different tactic is required. As an investment, wine needs to be viewed in a differentiated way. The factors of scarcity, origin, quality and storage all play a role here.
While scarcity is familiar to anyone trying to acquire a certain vintage of a certain brand, the assessment of origin and quality - the so-called appellation - requires experience and expertise.
How do I benefit from the asset class Fine Wine?
As demand is constantly increasing, wines are gaining in quality over time and the already rare supply is decreasing due to consumption, prices are rising.
performance
The fine wine market can be characterized as stable and robust for many reasons. First and foremost, this is due to the long-term investment horizon, which has historically been at least five to ten years. Secondly, the illiquidity of the asset class supports value stability, as a sale is usually preceded by several weeks of intensive offer comparisons and negotiations. These factors mean that the risk of fluctuations in the value of fine wine is relatively low.
With every bottle of wine that is consumed, the available supply of the already rare vintages is reduced. As the quality of the wines also increases over time, their prices rise. In addition, the demand for fine wine has increased continuously in recent decades, while the initial supply has remained at almost the same level. The reasons for this are the increasing amount of capital and the development of new high-volume markets, for example in Asia.
DIVERSIFICATION
The addition of fine wine is a sensible consideration, particularly with regard to a balanced and diversified overall portfolio. The fine wine market is characterized by a low correlation to the equity or bond market. Particularly in times of high inflation, tangible assets such as fine wine retain their purchasing power or even increase in value, whereas financial investments lose value. As the wine market is not directly linked to currencies, fine wine can help to preserve the value of a portfolio.
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Profit from an investment in Fine Wine
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Fine Wine as an asset class for...
Investor
FINEXITY gives investors access to high-yield and tradable private market investments.
Issuer
FINEXITY offers issuers an efficient and cost-effective way to raise capital for their projects.
Trading Partner
FINEXITY offers trading partners the opportunity to give their clients access to private market investments.
Frequently asked questions.
Here you can find answers to the most frequently asked questions about FINEXITY.
What are the benefits of private market investments?
In recent years, investments in private markets have proven to be extremely successful. For example, private equity investments have regularly exceeded public market returns, which has significantly increased interest and access to these investment opportunities. The traditional 60/40 division between stocks and bonds is no longer sufficient to meet today's financial requirements. A balanced mix of public and private market investments is essential. A strategic allocation to private markets can diversify and optimize the portfolio regardless of the investment horizon. With the help of a trading venue, FINEXITY brings issuers and trading partners together, giving investors access to high-yield and tradable tokenized private market investments.
What does FINEXITY's range of services look like?
With the help of a trading venue, FINEXITY brings issuers and trading partners together, giving investors access to high-yield and tradable tokenized private market investments. Issuers of digital securities (security tokens and, in future, crypto securities) thus benefit from access to trading partners and investors, which leads to faster fundraising with lower asset management fees. FINEXITY offers trading partners, such as banks and asset managers, access to pre-qualified private market investments via a white label solution. This enables them to attract new investors, retain existing customers, and at the same time build up more crisis-resilient portfolios. Investors benefit from high-yield private market investments with lower capital requirements, improved liquidity, lower costs and greater transparency.
How do investments via FINEXITY work?
A digital security is structured via an issuer. This is offered to investors as an investment via a trading partner (e.g. Finexity Invest GmbH). To do so, investors must register on the trading partner's marketplace. Here they can find out more about the investment and view and download the documents provided by the issuer. After successful online authentication via the provider IDnow, they can make the investment. Payment can be made via bank transfer or via the integrated e-wallet solution. As soon as the financing volume of an investment has been reached, the tokens are issued into users' wallets. The investment now appears as an asset on each user's dashboard.
Who is the owner of the investment property?
The owner of the investment property is an object company provided by an issuer. This property company acquires the corresponding property with the capital provided by the investors' tokenized bonds and possibly bank financing. A trading partner (e.g. Finexity Invest GmbH, under the liability umbrella of Effecta GmbH) acts as a (bound) intermediary between the issuer and the investors. This enables investors to subscribe to tokenized bonds that are structured as economic as (pro rata) direct investments. Investors therefore participate in selected investment properties just like owners, but also bear certain risks, which are described in detail in the respective bond conditions and subscription documents.
How liquid are the shares?
Private market investments are inherently illiquid, as they require long-term capital commitments and typically cannot be sold quickly. This illiquidity poses a challenge for investors who need flexibility and quick access to their invested capital. However, via the secondary market operated by FINEXITY, investors can trade digital shares of tokenized private market investments independently and free of charge across all trading partners at any time. Over-the-counter peer-to-peer trading dissolves the magic triangle of investment - the competition between profitability, security and liquidity - and thus opens up new opportunities for individual portfolio management and flexible wealth creation. As soon as the initial financing phase for a project has been completed and digital shares have been issued in the form of security tokens, this is activated for the secondary market. There, all users have the opportunity to post both buy and sell offers and thus trade digital shares in the form of real-time transactions. Transactions are processed via an e-wallet integrated into the platform. The secondary market is a form of investment brokerage and is supervised by our liability umbrella Effecta GmbH.
How does tokenization work and which blockchain is used?
Tokenization allows legitimate ownership claims to be recorded and, at the same time, these claims can be traded. The investment property is acquired through the capital raised and potentially through bank financing. A digital share of one euro each is shown on the blockchain. After successful financing, tokens worth the entire investment amount are issued. Each investor receives a number of tokens according to their investment. This concept is implemented using smart contracts, which digitally define the conditions of the capital investment. After the tokens have been issued to investors, a logged order book is created, which enables the legal identification of current investors. The underlying blockchain is a private permissioned blockchain on Ethereum that meets the strict regulatory requirements in Germany. This ensures legal security for investors. Using a private permissioned blockchain avoids using a decentralized blockchain with hundreds or even tens of thousands of servers, which significantly reduces the environmental footprint. The few servers used are also located in CO2-neutral or compensated data centers.
Which tokens are used and how are they stored?
Security tokens are used that have the same or similar rights as “classic” securities. Securities-like rights are membership rights or debt claims with asset content, similar to shares and debt securities. They then generally represent securities (“Securities sui generis”) within the meaning of Regulation (EU) 2017/1129 (ProspektVO), the Securities Prospectus Act (WpPG) and the Securities Trading Act (WpHG) or financial instruments within the meaning of the Banking Act (KWG) and the Securities Institutions Act (WPIG). For the secure storage of security tokens, a wallet is available to every user as a digital locker for personal storage. No deposit is required and there are no costs for personal safekeeping. The wallet is connected to a login to the technical platform. Neither FINEXITY nor the trading partners have access to users' login data, and the private key to the wallet is also secured in encrypted form by an external authorization and authentication provider. A double opt-in procedure is used for users' email addresses, and every transaction approval is made via mobileTAN via mobile phone number (2FA procedure).