Fine Bordeaux wine matures well for investors expecting a 16% return

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The Independent Online

Investors in the 2005 vintage of the Wine Investment Fund are set to double their money this year, as physical goods continue to outperform the labouring equities markets.

Over the five-year life of the fund, which invests in cases of the finest wines of the Bordeaux region, investors are expected to reap an annualised return of more than 16 per cent.

William Grey, an investment manager for the fund, said that this result was similar to the first fund which matured in 2008 and made an annualised 15.84 per cent net of fees. Even the 2004 fund, which was hit by the credit crunch, brought yearly returns of more than 13 per cent.

"We looked long and hard for an asset class that had a low correlation to equities," said Mr Grey, explaining that wine should perform well when the stock market slips. We advise people to invest the last five-to-10 per cent of their portfolios in wines."