Lunzer launches fund to invest in wine

Peter Lunzer, previously co-founder and director of the Wine Investment Fund, has today launched Lunzer Wine Investments.

Lunzer already looks after portfolios valued at £10m (€12.6m). He doubles up as LWI chief executive and chief investment officer and has joined forces with commercial director Neil Rafferty.

A minimum investment of £100,000 from high net worth individuals compares with an average of £20,000 at the Wine Investment Fund.

The minimum institutional investment is fixed at £500,000 and Lunzer intends to extend this to third-party providers¡¯ funds next year.

LWI will only invest in wine produced in the French Bordeaux district. Lunzer says: ¡°Bordeaux produces a sufficient quantity of the finest wines. It is less risky than other regions where production is less consistent.¡±

He said he believes in a ¡°wine-price-ratio¡±, which suggests certain fine wines increase in value over a four-year to eight-year period. He added that 20 years is the average life of a fine wine and limits his risks accordingly.