Sotheby's Super Tuscans Sale Proves Investment and Diversification Benefits, Says APW Asset Management

LONDON, ENGLAND, April 23, 2013 (Press-News.org) It is well known that Bordeaux is the main focus when investing in fine wine, some opt for cult or boutique new worlds from Australia and The United States, others prefer to security of Burgundies as a way of diversifying and sometimes out of sheer love or personal taste. Over the last few years more and more investors are turning their attentions to the Super Tuscans of Italy, such as Masseto, Tignanello, Sassicaia, Ornellaia and Solaia.

The history of Burgundy is widely known and most investors are aware that the regions wines are as highly regarded as those from Bordeaux, both in quality and market performance. Tuscany however, has performed strongly for several years now and offers proven diversification benefits. The Super Tuscan 50 Index, which consists of the last ten vintages of Masseto, Sassicaia, Ornellaia, Solaia and Tignanello, has outperformed the Liv-ex 50 since June 2007, seeing a five-year return of 76%, up to June 2012.

Premium Italian wines are currently showing some strong returns for investors. Some believe it is a trend that will continue and this is the right time get in there early. Thanks to a general trend towards experimentation, diversification and collectors wanting to expand their wine portfolios, Italian wines have emerged as a strong alternative to Bordeaux and Burgundy for wine collecting in recent years.

A recent sale of Super Tuscan wine could shine a light on the region for its investment potential. Sotheby's in New York sold a 15-litre bottle also known as a Nebuchadnezzar, of Masseto for $49,000 (GBP30,800) after "fierce" bidding, APW Asset Management reported. According to Nicholas Gibbs, Head of Private Client Sales at APW, "the performance of Masseto has steadily improved over the last decade along with the other Super Tuscans, but this sale could lead to a sudden surge in demand for this winery and other Tuscans of a similar quality."

"Masseto confirmed its highly desirable status with bidders from Asia, Europe and the Americas fiercely competing to win this very rare Nebuchadnezzar of Masseto," Jamie Ritchie, chief executive and president of Sotheby's Wine in Americas and Asia, was quoted as saying.

He explained that the lot was just one of only eight produced, five of which remain at the winery. The auction house also stated the value of Masseto has increased by 446 per cent since 1998. Bordeaux Index, one of the largest wine brokerages in Europe, reported last month that it has seen a 63 per cent rise in demand for Italian wine from investors this year.

Super Tuscans are enjoying a strong run of success, so much so, that the owner of Chateau Pavie, Gerard Perse recently revealed he might be interested in buying land in Italy. Perse was said to have told his guests that he'd love to invest in Italy, perhaps in Tuscany, at a dinner party that celebrated his estates elevation to a premier grand cru classe A status.

"When it comes to fine wine collection, trends can make a huge difference to the popularity of certain regions, and APW Asset Management look for ways to capitalise on these changes, "concluded Gibbs.

The top five Super Tuscans and their top vintages:
1. Masseto 1997, 2001 and 2006
2. Ornellaia 2006, 2007 and 2008
3. Tignanello 1990, 1995 and 2006
4. Sassicaia 1985, 2006 and 2007
5. Solaia 2001, 2001, 2004 and 2007

Website: http://apwassetmanagement.com