The Fund


Fund:
 Wine Growth Fund
Structure: A Luxembourg société d'investissement à capital variable – fonds d'investissement spécialisé. The Fund is an Investment company with variable capital established as a specialised investment fund subject to the Luxembourg act of 13 February 2007 on specialised investment funds, as amended.
Fund Jurisdiction:
Grand Duchy of Luxembourg. The Fund is in the process of being admitted by the Luxembourg supervisory authority, the Commission de Surveillance du Secteur Financier to the official list of specialised investment funds pursuant to article 43 of the act of 13 February 2007 on specialised investment funds, as amended.
Subscriptions:
 Quarterly (last business day)
Redemptions:
Quarterly (last business day, 60 days notice)
Base Currency: Euro
General Partner/Fund Manager:
Wine Growth Fund GP S.à r.l .
Central Administrative Agent: Banque Privée Edmond de Rothschild Europe
Registrar and Transfer Agent: Banque Privée Edmond de Rothschild Europe
Domiciliary Agent: Banque Privée Edmond de Rothschild Europe
Logistic Manager: BWB France Sàrl
Auditors:
Deloitte S.A.
Legal Advisers to the Fund:
 Allen & Overy Luxembourg
Minimum Investment:
Class A Class B Class I
 
€125,000 €500,000 €5,000,000
Initial Sales Charge:
5% (Class A) 4% (Class B) 2.5% (Class I)
Management Fee: 2.5% per annum
Performance Fee: 20% above High Water Mark
Exit Fee: NIL
Bloomberg codes:
WINEGFA WINEGFB WINEGFI
ISIN:
TBA TBA TBA
   


Investment Objective

The Fund has an umbrella structure consisting of one or several Sub-funds. A separate portfolio of assets is maintained for each Sub-fund and is invested in accordance with the investment objective and policy applicable to that Sub-fund. The Fund is currently comprised of one single sub-fund, the Wine Growth Fund – Investment Grade Wines (the “ Initial Sub-fund ”) the objective of which is to achieve high capital growth by buying and selling Investment Grade Wines at wholesale prices, from various sources including Châteaux/domaines, French négociants and wine merchants.

The General Partner acting for the account of the Initial Sub-fund will use various proprietary strategies to make investment decisions. These strategies may include, but are not limited to, price/availability ratio, valuation and potential upside, past performance, active portfolio management, obtaining updated information on the châteaux current and future plans and strategy, scores & ratings, making use of price inefficiencies and quality control. The strategies employed are explained in the Initial Sub-fund's Sub-fund Section.

The General Partner will, in general, buy for the account of the Initial Sub-fund:

1. Wines from the most reputable and highly sought after Châteaux/domaines with proven track records. All wines must have Five Star Provenance
2. Wines from outstanding to exceptional vintages
3. Wines that have received high ratings from renowned wine critics
4. Wines with long aging potential
5. Wines that are in pristine condition and that have been stored in professional storage facilities since bottling
6. Wines from Châteaux/domaines that have good current management and future plans
7. Wines in their original wooden case as an entire case
8. En Primeur wines (wine futures) - these are wines purchased while still in the barrel (but already tasted and rated by renowned wine critics), typically 2 years before bottling and public release at a discount off release prices.

Wines will be purchased within strict quality guidelines and will generally be stored in temperature and humidity controlled conditions in professionally-managed warehouses in France/Europe.


Bordeaux Winebank

Bordeaux Winebank Group (BWB Group) is the holding company of Bordeaux Winebank and incorporated in Luxembourg. As the pioneer of infallible ex-chateau provenance, Bordeaux Winebank offer an all-important point of difference in comparison to other Bordeaux negociants, as 100% of the wines sold by Bordeaux Winebank and its subsidiaries have certified “Five Star Provenance” – a term that they patented in 2009.


Five Star Provenance

1. All wines must be sold exclusively in original wooden case (OWC)
2. All wines must have documented “ex chateau” provenance
3. All cases must remain in professional storage in Bordeaux since bottling
4. Professional storage facilities must be temperature and humidity controlled and monitored 24/7
5. Annual certification of procedures by qualified auditor

BWB Group now includes subsidiaries in Luxembourg, Norway, France, Singapore and Hong Kong and latest inventory estimates their stock under management at 80 000 000€ (HK$850M/S$155M).

For more info, see: www.bordeauxwinebank.com


What Are Investment Grade Wines?

Wines from a top class Château/domaine from outstanding to exceptional vintages which are able to generate steady returns due to their increasing global demand and structurally limited supply. According to industry experts, it is estimated that less than 1% of the world's wine production is considered Investment Grade Wine.

Investment Grade Wine is an improving asset, as they age, they improve in quality and begin to be consumed, which increases the scarcity factor, fuelling higher and higher prices. The majority of all Investment Grade Wines come from Bordeaux, France. This is owing to their proven track record, long aging potential, high quality, limited supply and strong secondary market among many factors.

Demand for Investment Grade Wines of superior quality often exceeds supply, causing substantial price increases both for new and older vintages. If this market scenario continues, the Fund could make substantial profits according to its business strategy.

It is notable that Investment Grade Wines, as a capital asset, have performed well when compared to traditional equity and fixed income securities with low correlation to these traditional investments.


Who Can Invest?

All investors in the Wine Growth Fund must qualify as a Well-Informed Investor within the meaning of article 2 of the 2007 Act (i.e., as an institutional investor, professional investor or experienced investor as described below).


What Are The Risks?

A fund represents a speculative investment and involves a high degree of risk:

•
 The investment manager of a fund may have certain discretionary authority over the fund's assets.
•
 A fund may employ leverage and other investment techniques, and such leverage and other investment techniques may result in increased volatility of the fund's performance and increased risk of loss.
•
 A fund may invest in a limited number of securities or instruments, which could result in a limited degree of diversification and higher risk.
•
 There are likely to be a number of conflicts of interest or potential conflicts of interest in connection with an investment manager's management of fund assets.
•
 Annual certification of procedures by qualified auditor.

The above listed risk is not a complete list of the risks and other important disclosures involved in investing in funds is described in the offering memorandum.