WO 150 - June Analysis

2014-06-10

Wine Owners runs a number of fine wine Indices, with the goal of benchmarking to a representative basket of the world’s greatest, most representative and most traded wines.

Since Wine Owners opened its doors to fully integrated portfolio management and trading last June, the WO 150 index, with its heavy weighting towards Bordeaux, had fallen -2.06%, and since its August 17th 2013 12 month high, -4%. What’s pulled it down is predominantly a slew of classed growths.

The Wine Owners 150 comprises 150 Investment Grade Wines across the top 40 performers of the last 10+ years. The goal of the WO 150 is to provide a stable and reliable index for comparison periods over extended periods of time.

Chateau Ausone Saint Emilion Premier Grand Cru Classe A AOC	2000	-10.00%	£750.00
Chateau Pichon Baron Pauillac Deuxieme Cru Classe AOC	1996	-10.13%	£79.45
Chateau Pichon Longueville Comtesse de Lalande Pauillac Deuxieme Cru Classe AOC	2009	-10.20%	£81.67
Chateau Mouton Rothschild Pauillac Premier Cru Classe AOC	2000	-10.38%	£807.84
Chateau Yquem Sauternes Premier Cru Supérieur AOC	1996	-10.71%	£116.67
Chateau Pichon Baron Pauillac Deuxieme Cru Classe AOC	2009	-10.91%	£91.67
Chateau Mouton Rothschild Pauillac Premier Cru Classe AOC	2005	-11.91%	£306.67
Chateau Haut-Brion Pessac-Leognan Premier Cru Classe AOC	2001	-12.00%	£208.33
Chateau Ausone Saint Emilion Premier Grand Cru Classe A AOC	2001	-15.97%	£400.00

The best performing wines were not limited to Burgundy as the leaderboard shows.

Domaine Jean-Francois Coche-Dury Corton-Charlemagne Grand Cru AOC	2005	18.27%	£2,147.73
Chateau l'Evangile Pomerol AOC	2009	10.77%	£214.92
Chateau Le Pin Pomerol AOC	2009	9.78%	£2,115.65
Domaine de la Romanee-Conti Romanee Conti Monopole Grand Cru AOC	2001	9.75%	£7,494.54
Joseph Phelps Winery Insignia	1997	9.47%	£174.51
Domaine de la Romanee-Conti Richebourg Grand Cru AOC	2001	8.94%	£881.13
Domaine de la Romanee-Conti La Tache Monopole Grand Cru AOC	1999	8.29%	£2,529.43
Chateau Leoville Poyferre Saint Julien Deuxieme Cru Classe AOC	2009	6.89%	£120.83
Petrus Pomerol AOC	1998	6.25%	£2,000.00
Chateau Haut-Brion Pessac-Leognan Premier Cru Classe AOC	2000	5.88%	£425.00
Domaine Jean-Francois Coche-Dury Corton-Charlemagne Grand Cru AOC	2006	5.51%	£1,336.32
Chateau Palmer Margaux Troisieme Cru Classe AOC	2001	5.49%	£107.50
Giacomo Conterno Monfortino Barolo Riserva DOCG	2002	4.36%	£269.96
Dominus Estate Bordeaux Red Blend Napa Valley AVA	1999	4.35%	£74.92

With the very strong run of the top echelon in Burgundy, and a pronounced flattening of its growth curve since March, will the modest drop of the last month prove to be just a breather as last August and November proved, or the precursor to something else? The market appears resilient and scarcity plays its part. But scarcity alone is no cast-iron guarantee of value preservation, as the dual vintages of Ausone 2000 and 2001 show. With the buzz building around Northern Italy, that’s the next index on our list to create.