Cult Wine Investment’s main index posted positive returns over the quarter as it remained removed from the day-to-day swings in the wider financial markets. Our Burgundy wines led the charge with an impressive 10.23% return amid the release of the region’s 2020 vintage wines. Our Champagne holdings also turned in a strong Q1.
Despite a solid start to 2022, our performance fell short of the rapid rise of the Liv-ex 1000 index (+7.25%). This largely stems from the latter’s greater concentration in a small number of top tier wines, which are experiencing strong price appreciation due to a supply-demand imbalance.
In reality, it is difficult to build a fine wine portfolio solely on these top names due to their scarcity. Such a concentrated portfolio would also pose a higher risk should market sentiment shift and prices for these top wines consolidate. Therefore, we remain focussed on building a broader base of diverse wines that can maintain performance through different markets and deliver outperformance over the long haul.
Cult Wine Investment's Performance
CAGR = Compound Annual Growth Rate
Source: Pricing data from Liv-ex, Wine-Searcher.com as of 31 March 2022.
Analysis by Cult Wine Investment. Past performance does not guarantee future returns.