Sure Wine Fund – Return on Investment Compared to Other Investment Classes
As we’re approaching the launch of our Sure Wine Fund, we’re interested to test how our wine fund would perform. Earlier, we saw that the Sure Wine Fund is a great way to diversify and reduce investment risk. Today, we’re performing a test run to compare how the returns for our Sure Wine Fund would compare to other investment opportunities available in the market.
Our Sure Wine Fund will bring together a collection of the finest wines in the market – Bordeaux First and Second Growth wines. Therefore, as a test run, we selected the Bordeaux First and Second Growth wines that we recommended to you three years ago (3 years = our recommended minimum time frame to hold onto wines) and tracked the growth of those wine values. (For simplicity, we assume an investment in 1 full case per wine.)
As a benchmark, we compare our returns to the Liv-ex 1000 Index which is a broad measure of the wine market. We also gather data on the returns in the stock market (e.g. share price = FTSE 100), the energy sector (e.g. oil price = Nymex ) and metals sector (e.g. gold price = Comex )
The wine market generated higher returns compared to alternative investments over the three year period. £100,000 invested in the wine market would be worth £134,146, whereas the next highest is the energy sector which would have a value of £125,249. There were modest returns on the stock market with a return of £113,903. The return on metals is negative.
The Sure Wine Fund, based on the returns of the wines that we recommended to you three years ago, outperformed all investments, including the wine market. £100,000 invested in the wine market would be worth £140,818 – an incredible 40% return over three years.
We hope this test run serves as a helpful demonstration of how you can benefit from the growth in value of a collection of the best wines in the market – without even having to invest in bottles of every wine. If you’d like further information, get in touch and we’ll send you our Sure Wine Fund prospectus.
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