Reuters - Wine retains punch amid global turmoil

CHRIS VELLACOTT  16th Dec 2010

A fund investing in fine wines is outpacing other asset classes as Asian drinkers develop a taste for the finest vintages and compete for supplies with aficionados in Europe and the United States.
The Wine Investment Fund buys up fine wines from the Bordeaux region of France where there are only 35 producers of “investment grade” wine.
Such a narrow pool of eligible assets translates into a permanent supply constraint and keeps prices high, the managers said.
On the demand side, traditional connoisseurs in Europe and North America now have to compete for supplies with new drinkers as fine claret emerges as a status symbol among the nouveau riche of Asia, the fund’s director Andrew della Casa told Reuters.
“They do not even like the taste in a lot of cases. They just like to be seen to be buying the wine or drinking the wine ... Nevertheless, from our point of view as investors they are still taking stock out of circulation,” he said.
While true wine lovers might once have been dismayed at the finest tipples in the world being drunk by the uninitiated, the new consumers are learning to appreciate what they are drinking, Mr. della Casa said.
“In some cases, famously they will mix 7UP or Coca Cola with it. (But) that is changing. I have not seen that happen now for a few years,” he said.
Investors in the Wine Investment Fund, mainly rich individuals and families, as well as an increasing number of institutions, have enjoyed impressive returns since it launched in 2003.
According to a statement released on Monday, a five-year investment made in 2005 has yielded an average annual return of 17 per cent. In contrast, the blue-chip FTSE 100 British equity index averaged a 0.3-per-cent annual loss over the period, which was dominated by the credit crisis.
Wines held by the fund during the past five years, include a Lafite 1986, bought in October 2005 at £2,754 pounds ($4,371 U.S.) per case, and sold in September for £16,000.
Looking ahead, the fund has on its buy list the Latour 1996, which is “approaching a drinking window“, Mr. della Casa said.

Also appealing to the fund managers is the Haut Brion 1990, beginning to hit full maturity, and likely to see increasing demand against diminishing supply as more people drink their stocks.
Among wines on the sell list is the Lafite 2004, which has risen almost fourfold in the past two years to nearly 8,000 pounds per case, beyond the point at which demand is underpinned by European and U.S. drinkers.
The managers themselves keep cool heads when dealing with assets coveted by the world’s connoisseurs, viewing wine as any other commodity.
“We come from the finance world, not from the wine world. In a sense we do not care that it is wine,” Mr. della Casa said.

一个优质葡萄酒投资基金的其他资产类别已超过了亚洲饮酒者作为发展最好的年份，为品味和竞争与欧洲和美国爱好者用品。
投资基金购买的葡萄酒从法国波尔多地区的美酒那里只有35个“投资级”葡萄酒生产商。
这样一个符合条件的资产转换成一个永久的供给约束狭窄池，并保持价格高，管理人员说。
在需求方面，在欧洲和北美的传统鉴赏家现在必须为新的竞争，饮酒用品罚款红葡萄酒作为一种身份的象征出现在亚洲，暴发户基金的导演安德鲁德拉卡萨告诉路透社记者。
“他们做得一样，在很多情况下不是滋味。他们只是喜欢被认为是购买或饮用葡萄酒的酒...然而，从我们的角度来看，投资者仍然利用他们流通股，“他说。
而真正的葡萄酒爱好者可能曾经一直感到不安的世界上最优秀的醉酒在tipples的门外汉，新的消费者正在学习欣赏他们喝，德拉卡萨先生说。
“在某些情况下，他们将混合著名的可口可乐七喜或与它可口可乐。 （但）这种情况正在改变。我还没有看到这种情况发生了好几年了，“他说。
在葡萄酒投资基金的投资者，主要是富有的个人和家庭，以及越来越多的机构，有着可观的回报，因为它在2003年推出。
据周一公布的一份声明，五年投资在2005年取得了17取得了平均每年百分之回报。与此相反，蓝筹股英国金融时报100股票指数平均比时期，这是由信贷危机主导0.3每百分之年度亏损。
由基金持有的在过去五年的葡萄酒，包括拉菲1986年，2005年10月买了英镑二千七百五十四磅每箱（四三七一美元美国），9月为1.6万英镑售出。
展望未来，该基金在其买进名单的拉图尔1996年，是“接近饮用水窗口”已德拉卡萨先生说。
还呼吁基金经理是浩特布利昂1990年，开始打完全成熟，并有可能看到更多的对此消彼长的需求越来越多的人喝他们的股票。
在销售名单上的拉菲葡萄酒是2004年，已上升了近三倍，在过去两年几乎每件8000英镑的需求超出了在欧洲和美国是饮酒基础点。
保持自己的经理在处理与世界的鉴赏家梦寐以求的资产，将其视为任何其他商品葡萄酒冷静的头脑。
“我们来自金融世界，而不是从酒的世界。在某种意义上，我们并不关心它是酒，“德拉卡萨先生说。
路透社