The Australian wine investment group, the International Wine Investment Fund (IWIF), has reported a A$18m net loss for the full fiscal year.

The fund attributed the loss to an $8m write-down of its investment in Reynolds Wines, now in administration, and the A$14m in tax it paid on the profits of the sale of its stake in BRL Hardy as part of the takeover of that company by the US group, Constellation Brands.

Referring to an operating profit of nearly A$7m, Chris Day, chief executive of Berren Asset Management which manages the fund, said that the unusual events of the last year had overshadowed the real achievements of the fund.

"Put Hardy's aside from the special event that was Hardy's and just look at what was the continuing business of the wine fund, we had the most we've ever had," Day said. "It's disappointing that Reynolds had to be written off to the short term. But I can tell you if we can recover A$4m-A$7m of our Reynolds money in the next six months, that will all go to profit in the next six months."