WINE INVESTMENT:
DIVERSIFYING AND DE-RISKING PORTFOLIOS
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ccording to the Office for National Statistics, the UK economy is currently 21.8% smaller than it was at the end of 2019. This decline prompted investors to look outside traditional asset classes to fortify and diversify their portfolios. Notably, against this backdrop of market turbulence, the fine wine market has continued to thrive, with little correlation between it and the wider economy. Wine investment differentiates, de-risks and strengthens investment portfolios. Up until recently, the wine industry’s lack of financial transparency had prevented it from benefiting from the investment drive that has buoyed nearly every other business sector. Gradually however, the wine market has become less ambiguous, and is gaining traction as a lucrative, alternative investment avenue that can protect and enhance wealth. Though there is strong evidence of increased transparency, wine investment is still an unregulated market, and it is crucial to choose a company
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with a trustworthy track-record and reputation. Step forward award-winning OenoFuture, shaking up the fine wine investment industry, offering expert knowledge to clients and building lucrative portfolio strategies to match. OenoFuture goes beyond its competitors, paying for the cost of storage and insurance at market price all within its offering. Using a London City Bonds state-of-the-art storage facticity, which is temperature and humidity controlled, investors wines are in safe hands. OenoFuture researches the market and offer various exit strategies, making it easier for investors to enjoy market-beating returns that consistently average at 10% to 15% per annum. But why invest in wine to begin with? Firstly, wine markets are experiencing strong growth, according to the latest wealth report from consultancy Knight Frank. Fine wine topped the charts in its latest Luxury Investment Index, outperforming other collectibles like high-end watches, cars,
jewellery and art. Knight Franks ‘fine wine icons index’ rose in value by 13% in the 12 months to the end of June 2021, highlighting that wine is surpassing other forms of investments. Watches were the nearest challenger, with this index up by 5%, followed by cars, up 4%. This presents an exciting opportunity to investors. Secondly, investing in wine is more profitable than leaving money in the bank. It is safer than investing in cryptocurrency. It offers reliable returns. While stocks can rise and fall for many reasons, the value of fine wine is determined by plain old, dependable supply and demand. Pricing is mostly determined by the simple supply and demand economic model. Demand for fine wine around the globe is rising, especially as more developing countries acquire a taste for luxury products. From an investment perspective, wine is part of a wider investment portfolio. It will help anchor other investments. Offering a consistent, steady growth forecast, wine is considered a
