The fine wine story has garnered a fair bit of investor attention recently and Standard Bank Wealth and Investment is looking to get a slice of this elite business.

The wealth and investment business of Johannesburg-listed Standard Bank is teaming up with fine wine merchants Berry Bros & Rudd to quench investors' thirst for luxury assets. 

The association will allow the wealth manager to help clients, both seasoned wine investors and those buying simply for enjoyment, to build their own investment “cellars”. The service will also include educational courses and events as well as trading functionality through online wine trading marketplace BBX.

“While we have real in-house expertise in the more traditional asset classes which continue to be at the core of their portfolios, we can’t ignore the fact that our clients are also interested in alternatives and luxury investments,” said Deon de Klerk, head of Standard Bank Wealth and Investment, Africa and International.

Over recent years, the fine wine market has flourished alongside growing wealth levels, most notably in the Western world and in Asia. People in the growing middle class are investing in fine wine, taking it up as an enjoyable, albeit expensive, hobby. And as market gyrations cast a shadow over more traditional investments, investors are increasingly looking to diversify their portfolios with "alternative" asset classes.

The Knight Frank Luxury Investment Index, which tracks assets including art, classic cars and wine, has soared 205 per cent over the past ten years. Wine overtook the index with a growth of 234 per cent over this time. Last year, wine rose 13 per cent, compared to 10 per cent for the index.

“Wine collection and enjoyment form part of many of our clients’ chosen lifestyles. We have recognised this increasing interest in tangible investment assets due to their scarcity, ability to hedge against inflation and the fact they are uncorrelated to the financial markets. I am pleased to say that our association with Berry Bros & Rudd will now give our clients direct access to top class expertise in this field,” said Klerk.