Nobles Crus: Wine Experts Ltd and the Ernst & Young report

Castlebar (County Mayo)  to Dublin: 241 Kms 3 hours 10 minutes driving 

I have to admit to being somewhat mystified by the role Wine Experts Ltd described as 'independent valuers' to the Nobles Crus wine fund might play. Part of my post on Friday explored the background of Wine Experts Ltd. I guess it is possible that some investors, too, may also be mystified.

'Independent valuer for the sub-fund' Wine Experts Ltd 

In the 2012 report on Elite's Exclusive Collection for the year 2011 Wine Experts are listed as the 'Independent valuers for the sub-fund – Elite's Exclusive Collection – Nobles Crus'.  

Wine Experts Ltd was set up on 14th October 2010. Its registered office is 7th Floor, Hume House, Ballsbridge, Dublin. There are two directors: Carmel Heverin and Ellis Treacy. They appear to be professional directors. Heverin is a director of 52 companies including Wine Experts Ltd, while Treacy is a director of 55 companies including Corplaw Ltd. Apart from the two directors the company has no employees. Heverin and Treacy both live in the town of Castebar in County Mayo – 244 kilometres (3 hours 17 mins by car) from the registered office at Hume House.

There appears to be no trading address for Wine Experts Ltd, telephone number or website and its email address is filing@pearsetrust.ie.

According to the Pearse Trust website: 'Pearse Trust Ltd is an independent advisor on corporate and trust structures.  Our service is distinguished by expertise, transparency and value. Our service excellence allows us to build lasting partnerships with our clients, some of whom have been with us for over 20 years.'

The Dublin offices of the Pearse Trust Ltd are 7th Floor, Hume House, Ballsbridge, Dublin 4. Their website states that the 'Pearse Trust Ltd is an independent advisor on corporate and trust structures.  Our service is distinguished by expertise, transparency and value. Our service excellence allows us to build lasting partnerships with our clients, some of whom have been with us for over 20 years.' One of the services the Pearse Trust offers is the filing of company documents in a number of jurisdictions in order to fulfil the company compliance requirements. 

Wine Experts Ltd had a turnover of 755€ between 14th October 2010 and 31st December 2011. It is not known what proportion of their turnover was dedicated to valuing the Nobles Crus wine fund, which was worth just over 67 million euros on 31st December 2012. Certainly Wine Experts Ltd appear to be offering remarkable value, so it is small wonder that a valuation through Liv-ex has little attraction. 

Ernst & Young report

Auditors Ernest & Young were asked to provide a second opinion on the valuation of the Nobles Crus wine fund. Deloitte Luxembourg were the original auditors.  

On Monday 22nd October 2012 paperJam, a business magazine and website based in Luxembourg reported that the Ernst & Young report would be published during that week and that ‘Elite Advisers l’attend avec impatience’ – Elite Advisers are impatient to see the report published.  

As far as I know the Ernest & Young report has not been published. I did ask Miriam Mascherin, one of the managing partners of Elite Advisers, on 26th October when the report would be published but have yet to receive a response. There were plans for Elite Advisers to be in London on 31st October and 1st November but their travel plans were delayed. 

I have no idea whether this postponement was linked to the Ernst & Young report taking longer than initially expected. It is always possible that representatives of Ernst & Young needed to travel to Castlebar to benefit from the valuation skills of the two directors of Wine Expertise Ltd – Heverin and Treacy. 

In the hope of having the role of Wine Experts Ltd clarified I emailed the following questions on Saturday (3rd November) to Miriam Mascherin and look forward to posting her responses on Jim's Loire.

Questions to Miriam Mascherin:   

There are some further questions I would like to ask about Wine Experts Ltd and the publication of the Ernst & Young report. 

Yesterday’s questions (slightly amended) on Wine Experts Ltd:

Wine Experts Ltd, a company set up in 2010 in Dublin, is listed as ‘independent valuer’ for the Nobles Crus fund in the ‘Rapport annuel « Elite’s Exclusive Collection » 2012 pour l’exercice 2011’.  What expertise in valuing wine do the two directors – Carmel Heverin and Ellis Treacy - have please? I see that according to their accounts (2012) the company has no employees. Also what role does Wine Experts Ltd play in the valuation process for the Nobles Crus wine fund?

Further questions on Wine Experts Ltd?

a) How often do Wine Experts Ltd produce an independent valuation for the Nobles Crus wine fund?

b) How many reports or independent valuations did Wine Experts Ltd produce in the period 14th October 2010 to 31st December 2011?

c) Michel Tamisier is quoted in paperJam (2.10.12) saying: “Les rapports sont nickels.” Is he including reports from Wine Experts Ltd here?

d) As Wine Experts Ltd’s turnover for 14.10.10 – 31.12.11 was €755, did the company actually value/write reports on Nobles Crus wine fund (valued at 67,200,503€ on 31st December 2011)? Or was the independent valuation and report done by someone else and signed off by Wine Experts Ltd? 

e) Who set up Wine Experts Ltd? Did Elite Advisers or an associate ask the Pearse Trust/ Carmel Heverin and Ellis Treacy or the two previous directors (Leslie Martin or Maite Zuzaeta) to set up the company in 2010?

f) Did the existence of Wine Experts Ltd persuade Deloitte Luxembourg to drop the Emphasis of Matter’ note from their latest report?

Ernst & Young report

paperJam reported on Monday 22nd October 2012 that the Ernst & Young report would be published during that week and that ‘Elite Advisers l’attend avec impatience’.  Has the Ernst & Young report been published? If it has could you let me have a copy please? If it hasn’t what is the publication date and what is the reason for the delay please?

Update: 6th November 2012
No response to date from Elite Advisers.