Investment-grade wines can come from regions all over the world, but those that can be deemed ‘fine wine’ are subject to strict controls. Regulations vary from country to country, but are generally enshrined in law, with some classifications dating back more than 100 years.
Vintage Associates will build portfolios consisting of wines from the following six regions.
The global influence of the Bordeaux region in the fine wine investment market remains unsurpassed, with the top properties contributing near £2bn annually. Wine has been traded in the region since the 12th century and the high grade investment wine produced here today remains the cornerstone of the industry, Bordeaux Wines currently account for around 80% of fine wine traded worldwide. The best Bordeaux wines continue to dominate fine wine auctions and their names, with their noble lineages and international cachet remain essential currency for anyone involved in investing in wine.
The Liv-ex 50 index, which tracks the last ten vintages of the five First Growth wines (Lafite Rothschild, Mouton Rothschild, Latour, Margaux & Haut Brion) has increased by nearly 300% since its inception in 2000. The Liv-ex 50 index is the industry benchmark and is what many financial institutions will use to monitor the performance of fine wine. Although this view of the index can quite often dictate the global opinion of the market, it is important to understand that this is a snapshot of the overall market. With the market broadening now more than ever, diversification across more than just these five wines is imperative.