Liv-ex Director James Miles discusses the advantages and limitations of fine wine as an alternative asset class. He also outlines recent market trends and shifts.

1. James Miles Director, Liv-ex.com The Fine Wine Investment Market – An Inside View Saturday 5 th November 2011 Hong Kong International Wine & Spirits Fair

2. What is Liv-ex? HKIWSF 2011 Liv-ex is the global exchange for fine wine merchants. 400 members in 33 countries Global marketplace Price data, info and analysis Storage & transport Our customers account for 85% of world market.

7. Factors that influence price Factors that influence price In the last few years, the key influence on price has been China. Economic conditions New markets Vintage quality Critical opinion Brand

8. Emerging market influence

10. Best in class SWAG: S ilver W ine A rt G old Wine is the best in class over a 20-year period, combining high returns with low volatility.

12. A correction underway HKIWSF 2009 On the turn: After three years of uninterrupted growth, the market is down 15% in three months.

13. Lafite drives the market up... HKIWSF 2009 Lafite Rothschild was the main driver of the market, vastly outperforming its First Growth peers in the five years to June 2011.

14. ...and down HKIWSF 2009 Since then, Lafite has also led the market down, with all recent vintages decreasing sharply in price since the summer.

15. A buying opportunity? HKIWSF 2009

16. Where next: The “Magical 20” HKIWSF 2011

17. A further broadening: DRC HKIWSF 2009