Bringing you live news and features since 2006 

Fine wine enters summer lull


Despite substantial falls in most major equity markets, fine wine prices remained broadly flat in June, pointing to resilience in the fine wine market.

The Wine Investment Fund (TWIF) found buying interest generally concentrated on the 2000 vintage. The returns on the first growths were all closely bunched, with Latour just managing to break into positive territory. The others all showed a fall of around 0.5 per cent on the month.  The top right bank wines fared better, as they have done throughout 2013: in June both Pétrus and Cheval Blanc rose by around 0.5 per cent.
There were signs of a revival of the American market as the annual charity “Auction Napa Valley” raised USD16.9m, 61 per cent more than the previous record set in 2005.
Following the more than disappointing en primeur season which is now over, the overall impression is now of a market seeking direction.  Demand remains reasonable, but participants have limited appetite for taking positions.  This seems unlikely to change over the summer as the wine market enters its traditional seasonal lull.
The threat of import duties on wine which came under the spotlight in June as China muted the possibility of increasing taxes as part of a wider trade dispute with the EU, appear to have receded.  The timescale for any move (if the dispute is not settled) has been shifted well into 2014, and the extent of any increase may be less than first thought.  Meanwhile, the signals from India are also positive: federal import taxes may be cut more sharply than expected, and could be accompanied by moves to standardise state duties.
“We are delighted to be celebrating The Wine Investment Fund’s 10th anniversary this year. We have been through volatile markets and world-changing events, and many funds have disappeared (not just wine funds).  We believe that our clearly defined investment process and our genuine independence (which allows us to operate free of any conflicts of interest) have been fundamental to our longevity and success and we look forward to the next ten years with confidence and optimism,” says Andrew della Casa, founding director, TWIF.

Latest News

As the ETF industry reaches a milestone of USD12.71 trillion in global assets, Brown Brothers Harriman writes that its 2024..
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin closed last week at approximately USD66,300, marking a 7.8 per..
HSBC Asset Management’s (HSBC AM) ETF and Indexing business has passed USD100 billion in assets under management (AUM), reflecting its..
Amundi’s ETF Market Flows Analysis for April reveals that investors added EUR54.1 billion to global ETFs in April with equities..

Related Articles

Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Sean O' Hara
Pacer ETFs has announced the launch of three Cash Cows UCITS ETFs. The firm writes that this will give European...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by