Passion Asset Management white label platform for wealth concierge

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1 Passion Asset Management white label platform for wealth concierge A personal wealth management platform and peer to peer trading exchange for the things that wealthy people love designed for the management and trading of non-fungible passion assets. Wine Owners Ltd The Vineyard Vine Hill London EC1R 5DW United Kingdom t: +44 (0) w: contact@wineowners.com Company Registration Number: VAT Registration Number: Today we re focused on wine as the most widely held collectible in the world among high net worth individuals. The majority of collections are built on a foundation of passion or interest. Passion begets knowledge and knowledge reduces the perceived risks around a category. This leads to individuals thinking about wine as a store of value, and diversifying wealth preservation activities into the things they personally understand and enjoy. The fringe of activity around an individual s total net wealth once considered marginal is becoming much more significant. Wine Owners serves the needs of this demanding group by offering a complete solution cataloguing, tracking, analysis, and market pricing - all of which is integrated with an assured peer to peer exchange for those who wish to participate. Engineered from the ground up as a white label tech platform, it s own brand-able and functionally exceptionally configurable for any relevant business requirement. The white label platform offering allows Wealth Managers/Family Offices, insurers and loan providers to deliver an own branded and highly configurable service to further engage their private clients. KEY FACTS In the 3 years since we launched, 15,000 individuals use the Personal Wine Management platform to manage US$900 Million of fine wine, representing a small proportion of the $35- $40 billion held privately worldwide. Today 16 partner companies use the platform to engage with, and add value to their client relationships: our white label partners include wine merchants, portfolio managers and concierge, specialist storage, bridging loans provider and news media. END-TO-END SOLUTION Comprehensive cataloguing, portfolio management and tracking tools focused on fine wine Complete information set to educate and inform key decisions Price discovery Assured peer to peer trading Logistics tracking and reconciliation Detailed permissions management, data protection compliant and thoroughly secure WEALTH MANAGEMENT VALUE PROPOSITION Improve client retention through delivering a solution that permits private clients to manage and gain more enjoyment out of their passion assets Referral acquisition tool since collectors are socially networked and commonly make recommendations to one another More complete view of stored wealth helps with asset allocation decisions, in a world where a higher percentage of invested net assets is put into passion assets Fine wine can be collateralised Part of a jurisdictional diversification strategy

2 Wine is the most widely held passion asset in the world, due to widespread interest by high net worths as a collectible, market accessibility, high net worth lifestyle and attractiveness in terms of perfomance over the last 20 years. As the chart below illustrates, The main Wine Owners Fine Wine 150 index outperformed major indices over the last decade Positioning Wine lovers and collectors increasingly choose to self-direct. To do this, they require an endto-end platform encompassing portfolio management and a peer to peer trading environment where they can confidently take informed decisions, thanks to a combination of must-have information, market transparency, low-cost trading, and assured, efficient settlement procedures. Wine Owners is the first Internet-based platform to address portfolio management, price discovery and safe peer-to-peer trading in a comprehensive and integrated manner, designed specifically for tangible assets. The platform allows users to create a portfolio of wines they own across multiple cellars and jurisdictions. The audit function within the platform automatically provides valuation of wine collections. In addition, the platform allows users to make informed decisions about what to hold, consume, lay down or offer for sale. The trading exchange function makes it easy for users to trade in and out of their portfolios. Every decision is transparent thanks to robust market pricing on some 250,000,000 wines. Wine Owners orchestrates settlement between counterparties and tracks post trade, pre settlement logistics. Business description Wine Owners is a UK-based financial technology platform and information business, specifically developed to meet the needs of collectors globally. Wine Owners is an authority on Price discovery, the essential precondition for consumers to self-direct in a secondary market. Today the core platform and its white label derivatives manage over $750M of fine wines comprising average collection size of $75,000 held across 15,000 individuals. The wine management platform powers a number of discovery, inventory management and analysis offerings too. The Wine Management Platform is used by fine wine merchants, specialist storage, membership clubs, wine fund managers, advisors and bridging loans providers.

3 The white label solution S The personal wine management platform has been developed to allow partners, whose clients collect - or have an interest in - fine wine, to offer a branded platform, where users can discover, track, monitor and develop their interest and holdings in wine. The tool serves as a means of acquiring, retaining and adding value to private client relationships. This is currently the only global platform that allows brand partners to gain visibility of, and provide management tools and services for, circa US$35 billion of wealth stored in fine wine. Client acquisition A branded wine platform offering complimentary subscriptions to high net worth individuals can be used to attract new wealth management prospects, enabling a private bank to target wealthy private client. Campaigns may, for example, involve wealth managers asking whether prospects know how much of their wealth is stored in passion-led collectibles such as wine, and whether they think that they have the right balance of core v fringe holdings and a palatable volatility/ risk profile. Current clients utilising the solution will influence their peers and friends who also collect wine: the principle that birds of a feather flock together is especially true of passion-led collectibles. Client retention Research conducted by Spears, a leading information provider and publisher serving the needs of service providers for high net worth individuals, indicates that 51% of their clients globally store part of their wealth in wine collections, whether purely for pleasure or as an investment. Wine Owners offers a branded extension to the wealth manager s core service in a collectible category that will delight those private clients who collect fine wine. Collateral Wine is increasingly used as collateral by high net worth individuals. The wine management platform makes a full offering practical, thanks to access to robust market valuations, an understanding of which wines are suitable to lend against and prudent LTV ratios. Wine Owners can introduce clients to specialists in custodian pledge accounts within optimum storage conditions. Customer insight At the administrator level, the platform provides account contact information as well as a full suite of content management, configuration and customer analysis functionality.

4 Technology details The personal wine management platform is a cloud-based tool that uses the following technologies: Microsoft asp.net framework with SQL server database; Fully normalised database model; Responsive website design supporting PC, laptops, tablets and mobile devices; Multi-lingual and multi-currency; White labelling built in through all functions (style, content and behaviour); Modularised approach for all the major application components, including, user administration, account/trading functions, access control functions, audit trail of website activity. Third Party penetration tests have been (and continue to be) performed and the products are certified. Strategy for Multi Passion Assets The WMP was from it s inception engineered on the basis that wine would be the first of many passion assets. The white label architecture concept was extended to the notion that the asset type could be modified as well. The WO team have various designs for additional asset types and are seeking appropriate customers/partners to implement these asset types into the platform. Passion asset types envisaged in the near term include Cigars, Cars, Watches, Antiques, Jewelry, Coins and Stamps. Our analysis suggest that there are no constraints to the full breadth of assets we can eventually manage including Real Estate, Art etc. Our implementation model will be first to implement the portfolio management capabilities for the asset type, followed by trading exchange capabilities as a phase 2 project for that asset type. Implementing a wine management white label platform Wine Owners has now implemented 15 white label websites. Our project management process is sophisticated and streamlined. Milestones and deliverables are clearly communicated to all concerned. Below is a typical project schedule and set of activities: Configuration scoping each white label wine management platform can be adapted to the client s preferences a proposed set of standard functionality is used as a starting point and then reviewed. If the client requires integration with existing systems, the requirements are determined, scoped, priced and signed off. This takes approximately two to three weeks. Brand and messaging relevant branding is created that mirrors a client s existing online brand. Relevant text is written, which describes the offering to clients. This also takes some two to three weeks.

5 Implementation The Wine Owners team implements the platform on its SaaS cloud and conducts integration activities as required. Client data is also imported from existing/relevant sources. If no integration is required, this takes approximately two to three weeks. Testing the system functions as required This process takes one to two weeks. Implementation/production turnover The slow ramp introduction of clients to the Wine Owners system takes approximately one week. Pricing models Wine Owners has established a simple set of pricing options for its white label partners. It follows a typical software as a service (SaaS) pricing model of a setup fee coupled with a recurring annual sliding scale use fee, based on number of customers who sign up. The pricing model is made up of three core components: 1) An initial setup fee for branding, configuration; 2) Engineering for integration with existing back office systems (one-off fee priced according to scope; optional, depending on client s requirements); 3) Annual use fee, based on the number of clients under management with the platform. There is a sliding scale of volume discounts for larger customer groups.