Information is key to investors, no matter what sector you are investing in and one of our top priorities is collating and providing market data essential for optimising the performance of our clients’ wine investment portfolios.
The asset performance of fine wine is nothing new, the communication of it is. Historically, you previously had to be in the trade, or a keen collector, of fine wine to appreciate that it is one of the best performing asset classes. High profile fine wine investors include Sir Alex Ferguson who, amidst much press interest, realised over £5million from his fine wine portfolio in 2014.
Liv-ex has been instrumental in opening up the fine wine market to investors by delivering services similar to those found in financial markets. A stock exchange function for trade members and equivalent pricing information of wines traded on the market has created much greater transparency and market liquidity. The 400 plus global trade members of Liv-ex now benefit from analysis on individual wines, market trends and performance comparisons to other commodities and financial markets.
The fine wine market trade press recognises the very real interest investors have in the asset performance of fine wine and are now providing relevant commentary, helping to further educate and inform.
Specialist publications, such as Knight Frank’s Annual Wealth report features fine wine in its Luxury Investments Index, the KFLII, and the wealth managers it polls around the world endorse the fact that there is growing global interest in investing in fine wine. Knight Frank are, of course, property investment specialists, but they recognise the value of understanding investor interest in other asset classes. They report that fine wine is the top performing luxury asset in their KFLII in the last year and excellent long-term performance. We have commented on this previously but, in case you missed it, you can read their latest comparison with classic cars and jewellery at the links below.
We established Vin-X to make investing in fine wine straightforward and accessible to anyone interested in owning a fine wine portfolio. Key to this is understanding the market and where the opportunities lie. We publish an easy to consume, round up on the key news and events in the fine wine market every month to help keep investors informed and make them aware of factors which may influence the performance of existing fine wine portfolios or point them to where future value may lie. This along with our blogs and weekly newsletters all aim to grow knowledge, engagement and value.
Please see the links to reports prepared by Knight Frank on Luxury Investments below:
- Fine wine performance outstrips diamonds, classic cars and fine art:
- Fine wine compared with classic cars:
- Fine wine compared with Jewellery: