Fine wine is increasing in attractiveness for global private wealth investment. According to a recent report of Tellis Wine Investments, fine wines benefit from an annualised non-correlated return of 11.33% over the past 10 years.
This non-financial asset class grants low volatility which allows wealth managers to adjust the risk of other assets composing the portfolio. This valuable quality reinforces the attractivity and legitimacy of using fine wines in wealth management, especially considering the economic context.
Scarcity, which is due the to the restrictive classification system and zoning laws imposed upon the top producers in Bordeaux, combined with the booming demand driven by private wealth originating in China, Russia and other emerging markets contribute to fuelling the the consistent price appreciation of the investment grade wine market.
In order to address the need to efficiently manager this new type of investment, KeeSense® provides a smooth and powerful solution to valorise all kinds of non-financial assets. KeeSense® actually allows creating lines of non-financial assets such as fine wines, fine cars and arts and consolidating them with the clients’ other assets.