It wasn’t long ago we read story after story about investment managers opening up wine funds or art funds or something like that. Sometimes they’d pretend to be combining their wine and money, and other times they’d feely admit to not giving a damn about wine.
We hope these managers don’t have to mark their bottles to market.
Bulletin Wealth: Buoyed by his own enthusiasm, Leonhard, treasurer to the British Violin Making Association, raised £12.5m (€15.8m) for his Fine Violins Fund early this year. But having reached its first closing date, Leonhard has got no closer to his £40m target.
Elsewhere, First State Investments has found it tougher than expected to market a fund that owns a portfolio of song copyrights, such as John Denver’s Take Me Home, Country Roads, to a nervous wealth community.
First State will be lucky to raise half its targeted $300m (€205m), with private banks reluctant to risk client cash on such an esoteric area.
William Beck, founder of Wine Asset Management who began his career with UK broker Cazenove, confirms prices of wine have stabilised since July last year, having risen rapidly in recent years. “Wine prices can be volatile and they have been impacted by the slowdown,” he says.
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