As Patrimonial - Sep/Oct 2010
Land and Property Assets Investment
How to diversify your assets, optimize your taxation or organise your succession in the most effective manner? Those are recurring questions one might ask when it comes to assets management. There is one simple answer : invest in a Wine Investment Group.
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Magazine Investir – July/August 2010
Vineyards; more than just pleasure
The 2009 vintage has been described as exceptional, and for once the term is not misused. Partners in Wine Investment Groups are doubly delighted. For co-owners of vineyards of general high-quality, it’s good news for the value of their assets and don’t forget they usually receive an allocation of bottles too, free or at a reduced price. So, as long as the wine is good... The interest of private individuals in Wine Investment Groups is nothing new but the situation is more favourable now than it may seem, when everyone is talking about the genuine crisis in French viticulture. “It’s an excellent diversification tool” explains André Manière, founder of the Saint Vincent Wine Investment Group (see Expert Opinion).
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Le Revenu - – Summer 2010 – Special Issue
Property – Add some land to your assets
In order to diversify your assets and for your own enjoyment why not buy a few hectares of forest in the Vosges or vineyard in Morey-Saint-Denis.
The desire to go green in terms of assets by buying forests, vineyards or other agricultural land is very tempting for the French. These private investments should not be taken lightly. It’s pointless to expect a yield which runs into double figures, or tasty deals in just a few weeks, land bears fruit in the long term. That’s our advice for a good crop.
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Le Journal des Finances - Week of the 12 December 2009
Investors are dreaming of grands crus properties
Wine-growing holding groups wish to buy vineyards whilst taking advantage of tax breaks.
In an article dedicated to vineyard wine investment, the Journal des Finances lists the advantages of GFV, and especially the most favourable conditions for this type of investment. For this article, published under the heading of Placements, the editor notably relied on the contribution of André Manière, a recognised specialist in this sector and who was quoted on a number of occasions.
The publication’s conclusion coincided with one of the main principles of the Saint Vincent GFV: “OUR ADVICE Go for the GVF with the grandes appellations, who are not going through a crisis in the same way as some of the other wine-growers.”
Read this article, in French (new window)
Challenges - 26 November 2009
Use the anti-ISF weapons
It is in March, in the last rush before the submission of the wealth tax declaration (ISF) that asset advisors propose FIP’s, FCPI’s and other holdings which are specifically designed to lighten the burden of the wealth tax. This is a good reason to deal with it now and not when it is an emergency. In particular for the forest, art or wine. These pleasure investments enable the tax base to be reduced: 75% allowance, they will not be on the photo taken of goods on the 1st of January!
The formulae from forest holdings to vineyard holdings are the most accessible. Connoisseurs will appreciate being remunerated in part by grands crus... Example: the Saint-Vincent GFV opens the doors to exceptional plots in Burgundy.
Challenges - 8 October 2009
Make the love of wine and the love of profit rhyme
“Set up your cellar, invest in specialist funds, take a share in a GFV: these investments in bottles are worth find out more about.”
In its private Finance heading, Challenges magazine looked at the question of wine-making/growing investment, and notably the purchase of shares in a GFV. This is a field of expertise of André Manière, who has been consulted in the writing of this file.
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Le Nouvel Economiste - 8 October 2009
Enterprise and heritage - Vineyards
Join in what is profitable and pleasant
“Invest in land more that in returns. And then over the long-term: investment in vineyards only posts a return of between 1 to 3% which is very weak in relation to other investments and it is also very long term. However, demand is forever growing and in recent years the price for vineyards has exploded.”
In this eight page report, the Nouvel Economiste surrounds itself with specialists, including André Manière, in order to take a look at investing in wine-making, its growth and perspectives.
Read this article, in French (new window)
Investir Magazine - September/October 2009
Round Table: What strategy for your investments?
Investir magazine got together five CGPI, including André Manière, manager of Gestion Finance Saint Vincent, “in order to decode the troubled context of the economy and savings. These experts deliver their advice for each asset class”
Read this article, in French :
page 1 & 2 | pages 3 & 4 | pages 5 & 6 (new windows)
Mieux vivre votre argent - July-August 2009
Investments: get off the beaten track
Get together to buy a vineyard
By becoming an associate in a vineyard holding company (GFV), you are buying a share in a non-trading company tasked with purchasing vineyards. The company then entrusts these to a professional who is responsible for running them. Let’ be frank about it: you will earn nothing, or next to nothing. This is because the value of the shares, index-linked to the growth in land prices, has a generally low annual revaluation which is close to 2%. Only the supply of bottles at a preferential rate allows you the chance of making a profit in the case of re-sale, at least in the case of the more prestigious appellations. However, the essence of this does not lie here. You will benefit from a number of tax advantages. The shares are also up to 75% exempt from wealth tax for up to a maximum of 100,000 Euros, and then for 50% above this threshold. The same exemption applies to gift or inheritance duties. In this case, the tool is ideal. It is just a question of finding the right group because these products are rare. At the present time, Saint-Vincent Financial Management is offering two which are in the process of being sold: the Les Tonnelles GFV in Bordeaux, is situated on the haut-médoc appellation and opens at 15,000 Euros, including costs. Even more prestigious is the Saint-Vincent GFV of the Morgeot Abbey which is dedicated to a dream burgundy terroir: Chassagne-Montrachet. Price 85,000 Euros.
Actifs - 14/20 November 2008 - Anne-Laure Declaye
Gestion Finance Saint Vincent, GFV specialist
- This asset management consulting company builds vineyard land holdings for its clients.
- A high quality vineyard and a renowned vintner are vital in order to guarantee a sustainable investment.
Far from the bustle of the stock markets, some niche solutions that are more peaceful are starting to come into play. This is notably the case with very beautiful vineyards that continue to trade at high prices, and position their wine as an asset uncorrelated to the financial markets. “New consumers are appearing across the world for whom French quality wines remain vital”, explains André Manière, founder manager of Gestion Finance Saint Vincent, with the conviction that the meeting of a known vintner and a high quality renowned vineyard are the guarantee of the success of such an investment.
A meeting of the supply and demand. Victims of their success, the very best estates are expensive and call for owner-operators, following inheritance or transmissions, to call on external investors who are part of a vineyard land holding (GFV) in order to pay the switching fees. From the side of the investors, it is the search for asset diversification or tax optimisation (read the frame), mixed with a love of wine which constitutes the reasons to set up a GFV.
Selection criteria. In order to make a sustainable investment, it is necessary to be selective. André Manière, who has been building GFV’s for more than 15 years for property clients, mainly in Bourgogne, underlines the fact that it is necessary “to combine the most prestigious vineyard possible with the best vintners. At the end of the day, these are the ones who will bring out the intrinsic qualities of the terroir”. But the difficulty is the size. On the one hand “the incredible attachment to prestigious vineyards and the grands crus implies a weak and discreet rotation of the ownership of the vineyards”, he states. On the other hand, production space is reduced. Therefore, according to the inter-professional bureau of Burgundy Wines (BIVB), the 33 Burgundy grands crus is shared out across only 560 hectares.
How a GFV works. The aim of a GFV is to holder a vineyard whose operating is subject to a long-term lease - 18 years minimum – to a vintner. André Manière prefers a lease of 25 years, this allowing the vineyard to be freely disposed of at the end of its term, which is not the case a lesser duration (1). The owner of shares receives rent called “fermage” which will be paid to him/her in both money and bottles. It should be note that the land should be contributed to the holding in kind.
“I have never known so many professionals interested in my activity” , explains André Manière. Despite a low return, the GFV remains attractive. Also, the manager, which also has CGPI partners, receives search mandates from some banks to which they provide, training on this topic.
(1) Rural code, articles L416-1 et. seq., and L411-46 et seq.
Aspects of GFA fiscality
Fermages are taxable within the fiscal category of land revenue.
In accordance with the provisions of articles 793 and 793 b of the CGI, asset which are given over to long-term lease are exonerated from transfer duties on donations provided that three quarters of their value is less than 76,000 Euros and at 50% over this for each beneficiary.
In relation to wealth tax (ISF), GFA shares give rise to the same provisions (subject to compliance with the conditions under article 885 H of the CGI).
The allowance practice of 30% at the start of the lease for long-term leased assets is allowed by jurisprudence and that of 10% for minority shareholdings is accepted by the authorities.
Le Journal des Finances Hebdo 11-10-2008
Wine moves on to become a refuge commodity
Since the start of the year, their funds have grown 17.48%. Any advance on that? Miriam Mascherin and Michel Tamisier, who founded Elite Advisers in 2007, do not speculate on gold or the fall of the stock market. Their Luxembourg based fund Nobles Crus is exclusively dedicated to wine. “Grands crus are sought-after but they are rare, and demand for these luxury products is growing”, explains Michel Tamisier. Moreover, the fund assets are nice and very tangible. Mouton-Rothschild 1945, Château d'Yquem 1921, or Ausone 1961 are some of the 20,000 bottles which are patiently waiting to grow in value in the cellars of the Geneva free port.
And, despite the financial crisis, the market remains active. Auction sales results covered in the latest newsletter for Nobles Crus are simply a dream. “A double magnum of Petrus 1990 estimated at between 10,000 and 15,000 dollars was sold for 17,000 dollars, 12 bottles of Lafite-Rotchschild 1982 estimated at between 19,000 and 31,000 dollars sold for 35,000 dollars.” This type of fund is not isolated. “For some years now we have been witnessing an increase in the power of investment funds ” states Pascal Kuzniewski, an accredited expert in wines in Mougins. “Similarly, we are seeing more and more professionals becoming real private consultants for investors who wish to personally get involved in the wine market.”
This type of fund remains reserved for a happy few who are able to invest a minimum of 125,000 Euros, the amount needed to purchase a Nobles Crus share. However, this is not the only way of investing in this niche. It is even possible to own vineyards by proxy. Vineyard land holdings (GFV) are often proposed as financial products. This is a non-trading company whose aim is to purchase vineyards to make available to a farmer to operate. In consideration, the investor will benefit from a number of fiscal advantages which enable him to optimise his asset position (read above also).
Diversifying your assets
If the operation involves numerous tax advantages, it should not be considered by the yardstick of expected tax savings. “Above all, this is an asset diversification operation,” specifies André Manière, manager of Gestion Finance Saint Vincent. “In theory, its return is relatively weak. It does not exceed 1.5%. But this can be slightly increased when the group wishes to acquire part or all of the revenue in bottles.” The choice of farmer is therefore critical.
On of the GFV managed by André Manière has entrusted its vineyards to Jean-Nicolas Méo, one of the most famous vintners of Vosne-Romanée. “The rent of wine-growing land is indeed to the price of the hectolitre of wine. For these premiers crus of this appellation, this is the equivalent of 17 Euros a bottle. However, its Les Chaumes premier cru is selling for six times this amount according to the vintage” The resale of bottles received in payment for the fermage therefore enables to return on the operation to be improved.
Investir Magazine, September-October 2008
The vineyard, a relevant investment, according to a study
“If it is the love of a fine wine which lies at the origin of an vineyard investment, financial arguments also make it an intelligent investment”, according to a study conducted by Baker Tilly France, independent auditors network, chartered accountants and consultants, for whom vineyards are becoming a security investment thereby enabling exemptions from tax and allowances during transfers. Jean-Claude André, and associate of Baker Tilly France for the field of wine-growing, is analysing this craze. In recent years, the price of French vineyards has exploded. Suddenly, for both operators and owners, it is often difficult, in the event of a family holding, to buy back the vineyards or to compensate co-heirs, and for this reason it is necessary to identify funding. From the side of the investors, demand is growing, despite the fact that an investment in vineyards only offers a return of between 1 to 2%. “We are seeing a clear attraction from a certain type of investor in the range of Burgundy fine wines”, explains Baker Tilly France, “such as the whites of Beaune, the Chardonnay grape in of Meursault, Puligny, Chassagne, for example, as well as the great reds of Nuits-Saint-Georges, a pinot noir grape, in Gevrey and Vosne-Romanée for example.”
The rarity of these wines leads to high prices, from a few thousand to a few hundreds of thousands for an «ouvrée» (428 m2) based on the types of appellation, including several hundreds of thousands of Euros for the most prestigious. Investors often need to come together in order to acquire a plot, thereby forming a vineyard land holding (GFV).
“A wine investment offers an interesting leverage effect”, notes Baker Tilly France. “In effect, the initial investment, allied to heavy financial charges, frequently leads to deficit which allows the investor to achieve a tax exemption on revenue from land rental. For some people total or partial funding by a bullet loan could also be looked at.”
Intérêts privés, juin 2008
Happiness is in the vineyards
This June 2008, Intérêts Privés magazine has dedicated a particularly substantial article to the operating principles of GFV. Having selected our company from the two largest players in the market, the magazine interviewed André Manière, manager and founder of the company as well as a holder of shares in one of our GFV’, Saint Vincent des Chaumes - GFV to which reference is frequently made in this article. This, in a synthetic and independent manner, deals with all of the implications and effects of holding shares in a vineyard land holding. This is why we think that it is useful to cover it fully here despite the fact that it cannot be reproduced directly here owing to its length. If you wish to read it, please click on this link (a mini-window will then open on this page, not a new window in your browser).
LES ÉCHOS, 30 June 2008 - Nessim Ait-Kacimi (extract)
Investment to escape the stock market slump
Art, wine, paintings, stamps or old books, investments for “fun” or “escape” can sometimes lead to significant returns, based on the extent on the risks incurred. Their weak correlation to the traditional markets, make them tools of diversification which are appreciated during periods of financial turbulence.
In the current market turmoil, the investor may be tempted more to an “evasion investment”, wine, art, books to find shelter, a reason for hope. These alternatives to classical investments also offer some significant return over the long-term. Over thirty years (1976-2006) art, wine, books and violins have offered a return of between 8 and 11% per year (wine 11.1% of average annual return - source: Emotional Assets.)
Far from being only ceremonial investments, they also offer the virtue of diversification. Why is this? They generally have a positive correlation, albeit it weak, with financial products (shares, bonds).
A longer investment period than for other products is suggested by the different studies. Some advice up to twenty-five years, in other words, close to five times as long as for the holding of funds invested in shares. Therefore, those looking to make quick and profitable returns should stop to think...
Mieux Vivre Votre Argent, December 2006
“Invest close to where you live”
Invest in Saint Vincent des Vignes GFV
This vineyard land holding (GFV) allows you to become a part-owner of a vineyard for twenty-five years. Turn-key: an allowance on inheritance duties and wealth tax of 75% up to 76 000 Euros and of 50% over this. Entry ticket: 30 000 Euros.
Distributors: Banque Populaire Lorraine-Champagne or Gestion Finance Saint Vincent
Invest in the Saint Vincent Le Puy GFV
Does getting off the beaten track by acquiring a share in a vineyard tempt you? If so, think about vineyard land holdings (GFV)! Gestion Finance Saint Vincent is offering shares in the top of the range bordelaise domain which is cultivated using biodynamic techniques – or working the soil, the vintage cutting and the processing of the vines being made on the basis of lunar cycles - on the Côtes de Francs appellation. Warning: the GFV is a pure inheritance tool, and not a traditional investment. Entry ticket: 115,000 Euros.
Contact: Gestion Finance Saint Vincent
Mieux vivre votre argent, avril 2006
15 NUGGETS TO GET RICH
Original and profitable products from 1,000 to 50,000 Euros
Saint Vincent des Vignes, to reduce the burden of your wealth tax (ISF)
Becoming the owner of a vineyard is not only something to dream about. But being a vintner or estate manager is not something you just improvise. What is the interest in vineyard land holdings (GFV). Aimed at investments of over a million Euros, these collective products allow you to acquire a share in a vineyard. The advantage does not lie in the return: land revenues are mainly in the form of fermage. From a fiscal point of view, this investment notably offers partial exemption from inheritance, donation and wealth tax. In this universe, products are rare. Gestion Finance Saint Vincent, an independent company established in Dijon, is offering 3 GFV’s for subscription. Our choice: Saint Vincent des Vignes, an investment group in Champagne. Accessible starting at 30,000 Euros, this GFV is available from certain independent asset management consultants or from the Banque Populaire Lorraine Champagne.