May was a quiet month for the fine wine market, although volumes remained reasonable, according to The Wine Investment Fund.

The main indices fell by 0.3 per cent on the Liv-ex Fine Wine 100
index and dropped to a flat 0.0 per cent on the Liv-ex Investables
index.

The flat market came about despite a 3 per cent strengthening in the
Chinese renminbi against sterling, which should have boosted prices.
This was, however, counterbalanced by a slight weakening of the Japanese
yen.

TWIF said that Mouton Rothschild was the strongest of the first
growths, with price increases of around 1.5 per cent on average across
vintages. Margaux also rose slightly and Lafite was broadly flat, while
Haut Brion and Latour fell by approximately 1 per cent. The "Right Bank"
area of the Garonne Cheval Blanc also continued its strong start to
2013. Pétrus rose in value in post-1999 vintages, but fell for more
mature years. The younger/older distinction was broadly reflected across
most châteaux, although stronger vintages also outperformed lesser
ones, TWIF said.

One Hong Kong auction showed high prices across a range of wines. The
prices were as much as double the UK market price, with Pichon Lalande
faring noticeably well. Outside Hong Kong results were broadly in line
with expectations, TWIF said.

Meanwhile, economic news around the world was mixed. The key measures
of the economy of Japan saw a surge, with growth rising to 3.5 per cent
annualized, benefitting from the effects of the expansionist policy
over the last six months. The large potential market of India slowed
slightly, but still grew at 4.8 per cent annualized. With France
returning to recession, several other countries recorded negative
growth, and even Germany only managed minimal positive figures.

The Wine Investment Fund, which was launched in 2003, is represented
in London, Bermuda, Hong Kong and Zurich. Its founding directors are
Andrew della Casa and Rodney Birrell, while stock picking and analysis
is undertaken by investment managers William Grey and Chris Smith.