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Financiere d’Uzes launches Uzes Grands Crus fine wine investment fund


Building on the strong levels of interest generated by its first two funds invested in bottles of fine wine, Financiere d'Uzes is announcing the launch of a third specialised professional fund with the unique feature of being open – Uzes Grands Crus I.

This fund offers investors, as defined in Article 423-27 et seq of the AMF’s General Regulations, an opportunity to diversify their portfolios, while benefiting from the dynamic development of the global market for fine wine, symbolising French lifestyle and refinement.
Uzes Grabds Crus I is an alternative investment fund with quarterly valuations. Its assets, with at least 75 per cent invested in bottles of fine wine, will be managed in line with the risk management and conviction-led approach applied over the past 35 years on the equities markets by Uzes Gsestion, he specialised subsidiary of Financiere d'Uzes. The fund aims to outperform the annual rate for the five-year French treasury bond (OAT) with a minimum return of 5 per cent.
Characterised by a limited level of supply, due to very strict production rules, and growing demand, driven by the constant emergence of new consumers, collectors and investors,the global fine wine market is estimated at EUR3.5 billion per year. It consists primarily of French wines from the last 15 to 20 vintages and, to a lesser extent, Italian, Spanish, American and Australian wines of the same age, with 70 per cent of transactions focused on Bordeaux wines.
The fine wine market is benefiting from increased transparency and efficiency thanks to the numerous sales organised by leading auction houses, as well as the growing international presence of specialist online sales sites and, above all, the growing importance of the London International Vintners Exchange (Liv-ex).
The Liv-ex is an integrated trading and settlement-delivery platform for fine wine, created in London in 2000. Today, it has 440 members (merchants, brokers, distributors, import-export specialists and investment funds) from 35 countries who account for 85 per cent of transactions worldwide(1). The Liv-ex quotes prices for around 5,000 bottles of fine wine. Among the Liv-ex’s five indices, the Liv-ex Fine Wine 100, which is made up of the 100 most sought-after bottles on the secondary market with scores of 95 or over, is the industry’s leading benchmark for fine wine.
The economic climate, the level of demand from new markets – particularly China, the world’s leading importer of Bordeaux, and soon India – the quality of vintages, the ratings by critics and the brand are the key factors that influence fine wine prices.
After growing 93 per cent in 10 years, the Liv-ex 100 corrected 35 per cent between June 2011 and June 2014, linked in particular to the lower level of imports for China as a result of anti-corruption measures and three consecutive years with disappointing quality vintages (2011, 2012 and 2013), which followed two exceptional years (2009 and 2010). Since summer 2014, the Liv-ex 100 has been growing again (+2.1 per cent), driven by a number of positive factors. For instance, in 2015, imports of Bordeaux wine in China increased again for the first time since 2011, with 30 per cent year-on-year growth. In addition, professionals consider the quality of the 2015 vintage to be quite close to the exceptional vintages from 2009 and 2010.

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