Insight into the fine wine & global markets
Q3 2021 Performance Introduction
The fine wine market kept on rolling in Q3 with three months of positive returns leading to a 5.16% quarterly rise, as measured by the Liv-ex 1000, the broadest measure of the market. The strong quarter came from a diverse base with each wine region seeing healthy demand and rising prices amid the return of more normal economic activity in most countries.
Fine wine’s ability to perform amid uncertainty was on display in Q3. The economic backdrop was mixed due to inflation concerns, supply-chain issues in some countries, and central bank policy uncertainty. However, fine wine prices kept climbing with three straight months of widespread growth.
+5.16%
Liv-ex 1000 all-time high returns in Q3 due to the return of normal economic activity in most countries.
+4.76%
Cult Wine Investment Performance Q3 returns led by strong performance from Champagne and Burgundy
+158.05%
Cult Wine Investment Performance returns since inception in October 2009 - CAGR 8.28%
Fine Wine market summary
- The fine wine market kept on rolling in Q3 with three months of positive returns leading to a 5.16% quarterly rise, as measured by the Liv-ex 1000, the broadest measure of the market.
- Fine wine’s ability to perform amid uncertainty was on display in Q3. The economic backdrop was mixed due to inflation concerns and supply-chain issues in some countries.
- Champagne and Burgundy emerged as the top performing regions over the quarter with 8.99% and 8.19% figures, respectively.
- The Rest of World 60 maintained its strong 2021 pace with a 5.88% return. A slew of new California, South America, Australia fine wine releases in September spurred interest in these regions’ wines, possibly contributing to certain back vintages rising in value.
Fine Wine market outlook
After an excellent first three quarters of 2021, conditions remain in place for fine wine to continue to post strong returns. The economic backdrop is supportive and rising inflation adds upward pressure on fine wine prices as investors flush with cash will likely continue to seek out real assets as a potential hedge.
Although temporary periods of price consolidation can follow rallies, fine wine market fundamentals appear healthy.
Cult Wines Performance Highlights
- Cult Wines’ main index returned an impressive 4.76% in the third quarter of 2021 amid the broad-based rally of the wider fine wine market. Our research-based approach helped us uncover relative value opportunities.
- Over the past 12-month boom period for fine wine, our wine selections have outperformed the Liv-ex 1000 index by over 200 basis points (2.00%).
Data-driven investment
To reach investment goals, we identify wines with the best relative value and growth prospects. We do that by using proprietary AI-driven statistical models derived from millions of data points.
