Opportunities for vintage growth

Christopher Silvester says you don’t have to be rich to invest in fine wine, and the rewards can be handsome

Wine as an investment asset class intimidates most people, who mistakenly assume it is a rich man’s game when in actuality it is open to anyone who is prepared to commit a few thousand quid and wait for a few years. In the distant past the only game in town was to buy through wine merchants, but in the last quarter of a century a new breed of wine investment company has emerged. These are much the same as advisory stockbrokers, in that they choose a portfolio for you and trade it on your behalf. In the last ten years a handful of wine investment funds, operating on a similar basis to long-only equity funds, has joined the party. These buy or sell memberships, a bit like unit trusts, and co-own the cellar with their clients.