AAA speaks out in support of China red wine investment fund

Reports of China’s first red wine investment fund have been welcomed by Alternative Asset Analysis, an organization that promotes alternative investments.

In a move that reflects the growing appetite for the most alternative of alternative asset classes, the DeRouge Fund plans to raise $156 million through its investment in fine red wines.

A consultancy, Z-Ben Advisers, claims that the new fund is a sensible response to the growing demand from the affluent Chinese population for a chance to invest in assets that are much less affected by the performance of the equity markets, and often the strength of the economy itself.

AAA said that this type of super-alternative investment is growing in popularity as more people realise the money to be made from such investments. Anthony Johnson, AAA’s analysis partner explained “Similar funds based out of London have seen their returns rise by almost 70 per cent over the past eight years, so it’s clear that returns can be strong despite the risk being lower.”

High value storable good that are in limited supply, such as red wine, are the latest alternative asset class to hit the market and it is proving an interesting and popular choice among those committed to reducing their exposure to traditional investments.

Mr Johnson added, “More and more people in China are seeing their cash reserve increase as their economy grows. However, they are also aware that the global economy is anything but stable and that a safe haven for their cash is extremely valuable.”

AAA advocates investments in a variety of interesting alternative assets classes, including real estate, impact investment projects and sustainable forestry in emerging economies, such as Greenwood Management's forestry project in Brazil. “You don't need to look too far these days for an investment opportunity that is as ethical as it is profitable,” stated Mr Johnson.

About Alternative Asset Analysis:
The remit of Alternative Asset Analysis is to analyse and provide news on the global performance of a wide range of alternative asset classes including, but not restricted to, commodities, real estate, forestry, foreign exchange, hedge funds, private equity and venture capital.

Media Contact:
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Alternative Asset Analysis
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