With average annualised returns of over 20% across this 15 year period, it’s an area that most clients will have some degree of exposure to but many will have been historically limited or even prohibited by the average entry-cost. As prices for top tier Burgundy producers continue to soar they become ever more unattainable; but at the same time demand is increasing, reflected in a ~130% increase in Liv-ex market share since 2012. Furthermore, in the last three years alone Cult Wines has witnessed a 305% increase in client participation in Burgundy, with a total spend increase of over 1,100%.
More investors, spending more money.
This has had the result of giving more trade (volume and value) to a wider selection of producers at considerably lower prices with better liquidity, leading to a more sustainable, long-term trend for growth. In short: clients can reasonably access this high-performing strategy at more affordable prices.
I know what you’re thinking: “Win-Win!