Q1 2021 Investment Overview

In this report you will find:

  • • Fine Wine Market Overview
  • • Fine Wine Market Outlook
  • • Global Financial Market Overview and Outlook
  • • Cult Wines Regional Performance

 

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Cult Wines Q1 2021 Performance Introduction

Fine wine markets delivered three straight months of positive returns to start 2021, maintaining their consistent upward trajectory since last May following the coronavirus outbreak in early 2020. Fine wine’s Q1 return came in at 2.41% with French regions posting some of the higher figures. A successful 2019 Burgundy en primeur campaign amid an improving economic backdrop fuelled global demand for the top tiers of the fine wine world.

In this report, we look at the key trends in the fine wine market and analyse the performance of major wine regions. We have also partnered with Hay Hill Wealth Management to bring a fresh perspective on the outlook for the wider financial markets.

Q1 Financial Market Highlights

  • Most global equity markets posted positive returns in Q1. Asian equity markets underperformed later in the quarter amid expectations of tighter monetary policies.
  • Concerns over the inflation outlook triggered some mid-period volatility, causing bond curves to steepen substantially.
  • The economic outlook is improving due to vaccine rollouts and stimulus measures. Rising inflation and stretched valuations remain risks to markets over the course the year.

Q1 Fine Wine Market Highlights

  • Liv-ex 1000 posted positive returns in each month of Q1, netting a quarterly return of 2.41%. The Burgundy 50 posted a 4.45% return, helped by a successful 2019 EP release.
  • US tariffs remained a key theme with a broadening of the levy on European wines in January followed by a four-month suspension of the tariffs in March.
  • The fine wine outlook remains favourable with Bordeaux’s 2020 EP campaign a central theme in the coming months.

Q1 Cult Wines Performance Highlights

  • CW Main index returned 0.8% in Q1.
  • CW Champagne and Italy were our top performing regions. Our exposure to Burgundy and Rest of World underperformed due to price consolidation following strong gains in 2020.

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Quarter One Investment Overview 2021

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Quarter Four Investment Overview 2020

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Quarter Three Investment Overview 2020

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Quarter Two Investment Overview 2020

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Quarter One Investment Overview 2020

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Quarter Four Investment Overview 2019

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Quarter Three Investment Overview 2019

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Quarter Two Investment Overview 2019

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