There was a news report yesterday on the closure of a wine investment company, Assets Wine Management (AWM).

Apparently, the staff of Assets Wine Management (AWM) have been uncontactable since around 15th June 2010. AWM’s office at Duxton Road is also vacated.

Affected investors have gone on to file reports with the police and CASE.

So we have another case of wine investment gone sour. Last year, Universal Asset Group (UAG) also collapsed, leaving thousands of investors stranded.

Avoid unregulated investments that promise you returns that sound too good to be true.

Police reports filed against wine investment firm (Today Newspaper)

Wine Deal Gone Sour (The New Paper)

Posting up this information for the investors of Universal Asset Group (UAG) wine.

Dear all,

Please be informed that a receiver has been appointed to look into the affairs of UAG. You may wish to log on www.ipto.gov.sg to list yourself as one of the creditors against Universal Assets Group Pte Ltd. The winding up number is 123 of 2009.

Maritime & Investment Fraud Branch
Commercial Affairs Department

And thanks to an investor who posted up the exact steps as below:

Login to www.iptoonline.gov.sg
Under Corporate Insolvency, select Proof of Debt for Company Liquidation
(Form 77)
Select Yes
Enter winding up no 123/2009

It asks for your details and $5 payment.

Wine for Asia (WFA) 2009 offers a one-stop opportunity to keep abreast of the latest opportunity to keep abreast of the latest wine offerings, complete with business, educational and networking opportunities.

Date: 22th to 24th October 2009
Venue: Suntec Singapore International Convention and Exhibition Centre

For more details, visit the Wine for Asia 2009 website.

Yesterday, the Straits Times reported that a group of Universal Asset Group (UAG) wine investors had lodged a police report for delayed payment of their investments.

These investors had participated in a one year “buy-back” scheme, where they purchased bottles of wine which was to be left with the company.

The company promised a buy-back of their wine after a year at a guaranteed return of between 10 to 12 percent.

Apparently, some of these investors who were supposed to get back their money in February or March this year have yet to do so. UAG has asked them to wait longer as they were having difficulties finding buyers for their wine due to the economic climate.

CASE recommends that investors to seek legal advice as investment products do not fall under the purview of the Small Claims Tribunal.

There are at least five companies which have set up shop here in the last five years, offering wine portfolios or opportunities to invest in wine.

Added: Please do not leave your email address on this board. You can visit this discussion group.

http://finance.groups.yahoo.com/group/sour_UAG_investment/

The first talk at the Smart Expo that I attended was delivered by Saeed Shah, the sales director of Australian Wine Index (AWI).

Australian Wine Index is a fine wine broker which sources and purchases fine Australian wine for investors. They will also help to find suitable storage space for your wine, and advise you on different exit strategies when the time is ripe.

The reasons given by Saeed why we should invest in wine include:

• Wine has outperformed other investments.
  • Recent UK report by Wine Asset Managers (WAM)
  • Return of 16% over last 7 years
• Wine is a relatively low risk investment.
• Finite commodity
• Limited supply & growing demand
• There is huge growth potential.
  • US no.1 wine consumption market in the world
  • China 45% growth over the next 10 years
  • Global demand
  • Auction houses: Christie’s & Sotheby
  • “Nuevo Riche” in emerging marketings like China, Russia, Eastern Europe

Wine is an area that I haven’t invested in before as it is something not close to my heart. Even though I was told that I don’t have to be a wine drinker to be an investor, somehow I feel that I would be at a disadvantage when it comes to the product knowledge.

So how exactly do you invest in wine? These are the steps shared with us:

1. Selection
2. Storage
3. Trading

1) Wine selection

• Ratings (Critics) – RPJ’s Wine Advocate
• Regions – South Australia & Margaret River
• Vintage, Vintage and Vintage
• Research
• Strong ties with vineyards
• Build collections with intrinsic value

2) Wine storage

• Home storage – bad idea
• Perishable product
• AWI has a tie-up with Cougar Express Logistics whereby investors can store their wines and have their own individual account

3) Trading

• Exit strategies – Friends, collectors, merchants
• Auctions offer best option

I can’t really elaborate on the points given in the presentation by Australian Wine Index as I’m pretty much a novice when it comes to wine investment.