Alternative Outlook

Investors in fine wine see 10pc annualised returns over past five years compared to FTSE’s 0.03pc. Investors in fine wine have seen double digit annualised returns over the past five years – a period when the FTSE 100 has failed to grow at all.

The Wine Investment Fund, a closed-ended trust that invests only in Bordeaux wines, announced annualised returns of 10.04pc over the past five years compared to the blue chip index’s paltry 0.03pc. The Fund, holds an average of four tranches a year, locking investors in for five years has managed av…

Wine investing is seen as a diversifying element in a portfolio, with returns that are relatively uncorrelated to traditional investment markets.

But with volatility at unprecedented levels in the past five years it is no surprise wine markets have felt some of the upheaval.

This was clearly demonstrated in the second half of 2011 when the Liv-ex 100 Fine Wine index, which represents the price movement of 100 of the most sought-after fine wines for which there is a strong secondary market, fell by 21.5 per cent.

To take advantag…

Fine wine investment specialist,  (TWIF) predicts that the main wine index (the Liv-ex 100) will finish 2012 10% above its 2011 year-end level.

TWIF has published its first ever ‘fan chart’ showing the probability of various different wine market returns over the next 12 months, in the same format used by the Bank of England to forecast inflation.

The prediction comes on the back of previous markets (1998 and 2008) which saw the market hit a low point in December and recover sharply the following year.

With graphical analysis also…

One of the most popular, most talked about and most successful alternative investments has been fine wine. But is it a genuine opportunity for retail consumers or just the preserve of a few knowledgeable specialists?

Wine Investment

One of the reasons investors are so attracted to wine as an asset are the impressively high returns. Over the last ten years the Liv-Ex Fine Wine 100 index has enjoyed a 14.1 per cent compound annual growth rate. Last year, fine wines returned an impressive 40.5% and fine wine is continuing its strong start to…