A typical 30-something's investment portfolio may feature shares, unit trusts and property. But for Kong Fook Keong, 37, a project manager in an IT company, his portfolio reads 30 per cent stock, 70 per cent wine.

'I started buying a little at first, $2,000 to $3,000 worth, to get a feel of the investment,' he said. 'It seemed like a good investment, especially since I've been burnt on the share market before.'

Having been drinking wines for five to six years, and having completed wine tastings and appreciation classes, Mr Kong was quite receptive when Australian Wine Index (AWI), which provides fine-wine sourcing and investment advice, talked to him about an 'investment strategy' for wines.

His first label - a case of Torbreck Descendants 2001 - was followed by Parker Terra Rossa First Growth 1999, then Clarendon Hills Astralis 2000. He's since sold off the Parker and Clarendon for about 10 per cent profit, Mr Kong says - 'not bad for a one-year investment,' he reckons.

With some $80,000 invested in wines now, Mr Kong is redefining 'liquid assets'. 'At least they are tangible investments, and if I don't sell it, I can always just drink it,' he quips.

Mr Kong is part of a growing breed in Asia, says AWI. The Sydney-based company, set up in 2002, moved its base to Singapore in 2003 because it saw growing demand in wine buying and collecting in Asia.

'We act as a brokerage for our clientele, accessing premium, rare, hard-to-source vintage Australian boutique wines for them,' says Justin Alexander, 33, who used to be a private-client stockbroker in London. Starting off as a wine lover and avid collector himself, he met like-minded Jeremy Kasler in Sydney and set up AWI.

Demand for Australian was unbottled some 10 years ago with influential critic Robert Parker giving strong recommendations for Australian labels like Penfolds Grange, says Mr Alexander. 'Since then, we've seen a growing band of cult, boutique wines emerge,' he says.

Wine investing isn't really the same as dabbling in shares or property, Mr Alexander says, but 'it is one area which is showing healthy returns.'

For instance, Australian wine auction and exchange operator Langton's 2002 Fine Wine Index showed a basket of 28 leading 'blue-chip' wines putting in a compound growth of 12 per cent a year over the last six to seven years.

AWI has some 1,000 clients in the Asia Pacific today, with over half in Singapore. Clients invest at least $5,000 - shipping, insurance and three years of storage included - and the wines are kept at the temperature-controlled Cougar Warehouse in Boon Lay Way. As long as the bottles don't leave the warehouse, they don't get taxed.

Investors can be as speculative as they want, says Mr Alexander, as wines have blue-chip, cult and emerging categories as well. And Australian wines are becoming more serious players in the market with the country's first en primeur sale this year by Penfolds - the label sold its 2004 Bin 60A and Block 42 before bottling, much like futures.

Australian Wine Index
3 Pickering St,
#01-66 Nankin Row
China Square Central
Tel: 6327 8975