Sommtrust

Sommtrust

Sommtrust

Sommtrust

Sommtrust is the first-ever actively managed wine investment strategy available to all. They make it easier for people to participate in wine investing, without the hassle of trading and researching investment grade wines on their own.  Sommtrust automatically invests your capital directly in a selection of high-quality wines vetted by their Master Sommeliers.

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Highlights

+3.04%

Asset Class Return30d

#3 Rank

In Wine30d

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Invest from

$1K

Overview

Sommtrust removes all the hassle when it come to invest in wine. They conduct deep fundamental and quantitative research to identify high performing wines for the next 5+ years. Then they source wines from wineries, global wine exchanges, and merchants. Through their direct connections with producers and merchants, Sommtrust is often able to source wines for below retail price, always reliable and transparent. Sommtrust also stores the wines for you in their state of-the-art storage facilities which are humidity and temperature controlled and fully insured.

Things to Know

  • You make money on

    Value

  • Fees

    2.7%

  • Min Investment

    $1,000

  • Payout frequency

    Asset sold

  • Term of investment

    60+ months

  • Target Return

    Varied

  • Liquidity

    Hard

  • Open to

    All Investors

  • Mobile Application

    No

Top Perks

  • Fine wine has a negative correlation to traditional financial assets, making it stable even during times of economic uncertainty.

  • The best wines are highly restricted in supply and face increasing demand, which has pushed their value higher.

  • Diversify your portfolio by investing in an asset class that institutional investors and high net worth individuals have been investing in for decades.

See inside MoneyMade’s 6-figure multi-asset portfolio

6-Figures

12+ Assets

50+ Platforms

4yr+ Returns

How you make money

Sommtrust invests your capital in high-quality wines vetted through deep fundamental research by their Master Sommeliers and Research team. Your portfolio is updated when the they see a better risk/reward opportunity than an existing wine holding(s). Sommtrust is a long-term focused with low turnover.

How Sommtrust makes money

Sommtrust charges a 2.7% annual fee for their Basic plan. This includes wine buying, wine fraud detection, and selling as well as active management of your portfolio. They do not charge any buying or selling fee. Sommtrust’s fee is prorated across the year based on the average balance in your account, and a portion of this is charged monthly.

Is it safe?

Fine wine as an asset class has outperformed most global equities with 13.6% annualized return over the past 15 years. Furthermore there is a negative correlation between the wine market and traditional financial assets, reducing your portfolio risk exposure during times of economic uncertainty.
 

 

Sommtrust locates, acquires, authenticates and stores your wines in their state-of-the-art storage facilities. They also fully insure your wines against breakage and loss. 

  • Established

    2021

  • Country Available

    US Only

  • Assets Managed

    n/a

How You’re Taxed

Capital Gains

Capital Gains

Income Tax

Income Tax

If you are investing on a wine investment platform like Vinovest, where you own a fraction of a case or bottle of wine:

  1. Sale of wine: When your holding is sold, you receive the equivalent of a dividend. Your profits are then taxed as income.
  2. Secondary market: If you trade your shares on the secondary market, your profits are taxed as capital gains.

For those of you selling a bottle or case of wine you purchased, these investments are classified as 'collectibles.' Gains on cards held for one year or less are taxed as ordinary income—the same tax treatment as short-term capital gains (STCGs). Gains on cards held more than one year are taxed as ordinary income, except the maximum tax rate is 28%

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