Q3 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 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.

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Q3 Fine Wine Market Highlights

  • Liv-ex 1000 reached new all-time highs in each month of Q2, netting a quarterly return of 3.0%. The Rest of World 60 and Burgundy 50 posted the highest regional growth figures.
  • The improving macro backdrop and the longer-term suspension of the US tariffs on European wines added tailwinds to fine wine’s performance.
  • As expected, Bordeaux 2020 EP release prices were higher than 2019, but a selective approach to both new EP wines and back vintages revealed exciting opportunities.

Q3 Financial Market Highlights

  • Global economic growth forecasts rose primarily due to an improved outlook for advanced economies.
  • Global equities advanced in Q2 as most markets overcame bouts of volatility due to inflation concerns. The accelerating roll-out of Covid-19 vaccines provided support throughout.
  • Government bond yields saw divergent performance. US 10-year yields fell (meaning prices rose) while yields rose in Europe. Corporate bonds outperformed government bonds. Commodities gained with energy again the strongest component.

Q3 Cult Wines Performance Highlights

  • The hot streak continues - after a strong first half of 2021, fine wine markets maintained their momentum into Q3, led by wines from Burgundy and Champagne.
  • Fine wine’s strong quarter came despite a mixed backdrop in the wider financial markets that triggered some equity market volatility late in the period. Fine wine continues to establish itself as a source of stable returns amid inflation concerns in the wider economy.
  • A series of new releases from Chile, Argentina, US, Australia, and Italy helped spur interest in a diverse range of wine regions.
  • Cult Wines’ portfolio delivered a 4.76% return, led by strong performance from our Champagne and Burgundy wines. Our research-based approach also helped our Bordeaux selections post healthy gain.

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Quarter Three Investment Overview 2021

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Quarter Two Investment Overview 2021

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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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