By its own admission, the cash-rich International Wine Investment Fund (IWIF) is at a ‘fork in the road’. Simply put, the fund now has $192 million in cash and $50 million in Constellation Wines scrip and is wondering what to do with itself now that its former largest asset, its interest in BRL Hardy, is no more. The IWIF actually spun out of the Wine Trust of Australia, the entity formed as owner of the de-cooperatised BRL, which used to operate the Renmano and Berri wineries in South Australia, and which purchased Thomas Hardy & Sons before listing in 1992. The listing diluted the WTA’s shareholding in BRL Hardy Ltd to 20.6%, but the WTA listed itself in 1996. It became the IWIF when its unitholders decided to make it a diversified wine industry investment fund. The business has been operated by Berren Asset Management since Berren’s incorporation in October 1989. Such is the extent of the turmoil within the IWIF that a General Meeting has been called in July to discuss issues such as: whether or not the fund should be wound up, its current investment strategy persevered with, other strategies taken on board, or whether the merger’s cash proceeds should be divvied up amongst its unitholders at a rate of at least one dollar per unit. The date of the meeting has yet to be announced, but Adelaide is the likely venue.
