The fine wine market shifted from an emerging market in 1980s to established investment market in the 1990s. In the past decade we have seen massive growth in fine wine consumption in new markets on all continents. Fine wine now also attracts the attention of sophisticated international investors who have come to appreciate that this market of sustained growth, coupled with the limited and decreasing nature of the commodity, provides opportunities for the realization of above average financial returns. Until fairly recently the market for the consumption of fine wine has been in France, the French colonies, the UK, continential Europe, and the US. Interest in wine has now spread to new markets all over the world. It is now predicted that Eastern Europe will very shortly match the current US market share of 15%, due especially to demand groth in Russia. Increasing demand in Asia, particularly in China, is also a major growth phenomenon that is expected to continue. Over several periods of economic trend analysis, fine wine is shown to be relatively non-correlated to traditional investment markets. In times of prosperity, high fine wine consumption increase demand and reduces supply of the best investment grade wines. In more difficult periods of equity market performance, meanwhile, we see a fight of example, following the recent (2007) credit squeeze, we see the Liv-ex 100 fine wine index is up by 50.3% year-on-year. The performance curve of fine wine investment since 1992 is significantly higher than that of the FTSE 100 and is showing an increasing real and comparable acceleration. Recently commentary from Jancis Robinson, Master of Wine and Wine Correspondant for the Financial Times, encapsulates well this worldwide shift in the fine wine market. All over the world now, a wine collection is regarded as a desirable, even expected, accoutrement to financial success, just like membership of the right golf club or investment in significant real estate. New interest from Asia, Russia and, increasingly, Latin America has put extraordinary pressure on prices of the traditional trophy wines, the Bordeus first growths and most sought-after grand cru burgundies. Eighteen 55 Clarets Limited recognizes the propensity for these conditions to continue throughout the life of the fund and beyond. Please see the left.