IDEAS home Printed from https://ideas.repec.org/a/wsi/ijtafx/v28y2025i03n04ns0219024925500128.html
   My bibliography  Save this article

Cheers To Enhanced Portfolio Performance: Wine As A Unique Asset Class

Author

Listed:
  • MESIAS ALFEUS

    (Department of Statistics and Actuarial Science, Stellenbosch University, Stellenbosch 7602, Western Cape, South Africa2National Institute for Theoretical and Computational Sciences, (NITheCS), South Africa)

  • ANTON BLIGNAUT

    (Department of Statistics and Actuarial Science, Stellenbosch University, Stellenbosch 7602, Western Cape, South Africa)

  • JEAN-PIERRE VILJOEN

    (Department of Statistics and Actuarial Science, Stellenbosch University, Stellenbosch 7602, Western Cape, South Africa)

Abstract

This study has two main goals: first, to construct a new South African Fine Wine (SAFW10) index using a repeat-sales regression methodology [M. J. Bailey, R. F. Muth & H. O. Nourse (1963) A regression method for real estate price index construction, Journal of the American Statistical Association 58 (304), 933–942] based on the 10 best performing wines that confirm high-quality and liquidity and are highly desirable assets. Second, it examines the effects of adding this new wine index to a broader investment portfolio. Our analysis reveals that including South African wine assets can improve portfolio growth rates and diversification in line with the literature on wine investment [P. Masset & C. Henderson (2010) Wine as an alternative asset class, Journal of Wine Economics 5 (1), 87–118; L. W. Sanning, S. Shaffer & J. M. Sharratt (2008) Bordeaux wine as a financial investment, Journal of Wine Economics 3 (1), 51–71]. This study is the first attempt to develop a wine index in the South African market, adding a valuable option to the financial instruments available to investors in developing markets.

Suggested Citation

  • Mesias Alfeus & Anton Blignaut & Jean-Pierre Viljoen, 2025. "Cheers To Enhanced Portfolio Performance: Wine As A Unique Asset Class," International Journal of Theoretical and Applied Finance (IJTAF), World Scientific Publishing Co. Pte. Ltd., vol. 28(03n04), pages 1-21, June.
    • Handle: RePEc:wsi:ijtafx:v:28:y:2025:i:03n04:n:s0219024925500128
    DOI: 10.1142/S0219024925500128
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0219024925500128
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0219024925500128?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijtafx:v:28:y:2025:i:03n04:n:s0219024925500128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijtaf/ijtaf.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.