Vintage returns for Asia's first wine fund

Asia's first wine fund, launched five years ago in Hong Kong by Chateaux Management Group (CMG), has earned a 73% return for investors. The earnings represent an annual return of nearly 12%. The group's first fund to mature, Wine Performance Inc, is one of four currently under management for clients including tycoons, celebrities and private banks.

Launched in 2002, the fund's profitable investments included cases of Chateau Lafitte-Rothschild 1986 purchased at US$3,400 and sold for $14,200 _ more than four times the original price and equivalent to a 33% annual return. Another case of La Tache (from Domaine de la Romanee Conti) purchased for just under $4,000 sold for $15,750.

A unique aspect of the fund is that investments can be redeemed in wine, cash or an equal quantity of each.

Benjamin Huneau, the managing director of CMG, said the fund was a very small prototype. ''But the successful maturation of our first fund demonstrates that wine investment works, when it is managed properly.''