Jennifer Williams-Bulkeley of AOC Investment Advisors provides a summary of an event featuring fine wines. The event included sparkling and white wines from areas like New Mexico and Bordeaux, as well as reds from California and Rhone. Williams-Bulkeley then discusses tips for acquiring fine wines, noting regions and vintages that provide good value. She explains how wine prices differ between restaurants and retail, with many well-regarded bottles costing less when purchased rather than drunk out.

1. AMERIPRISE
Is My Wine Fine?
The Investment Grade Wine Market
AOC Investment Advisors
Jennifer Williams-Bulkeley AIWS
20 Park Plaza, Suite 447
Boston, MA 02116
617 948 2147
#wineassetmgr
www.wineassetmanagement.com
jwb@aocadvisors.com
Copyright 2014 AOC Investment
Advisors - All rights reserved

2. THE WINES OF THE NIGHT

3. Sparkling
GRUET, Demi-Sec, Albuquerque, New Mexico, NV
Varietal: 50% Pinot Noir, 50% Chardonnay
White
CLARENDELLE, Graves, Bordeaux, 2012
Varietals: 71% Semillon, 24% Sauvignon Blanc, 5%
Muscadelle
Reds
DOMAINE CHANDON, Carneros, 2011
Varietal: Pinot Noir
PAUL AUTARD JABOULET, Crozes-Hermitage, 2010
Varietals: Syrah,Viognier 3
2011 Domaine Chandon, Pinot Meunier $45 x 3 = $135
4) 2010 Paul Jaboulet, Rhone Blend (Syrah, Grenache)

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5. 5

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7. Top Tips to Owning the List
Start with Geography 101
Varietal, think region, if its hot, if its cold, basics of wine expression
Don’t play the margin game, Italian wines, lots of good but not great
Just because its from France or Napa it does not need to be expensive
Vintage matters in top wine, not as much in New World
Be willing to step outside of your varietal comfort zone
Be wary of Pinot from hot climates, 14% Pinots are an 80/20 proposition
Value Regions - Jura, Languedoc, Spain, Southern Italy,
Finger Lakes New York, Argentina, Austria, Ontario,
Sud-Ouest, Savoie, Rhone
7

8. Wine Menu Restaurant versus
Retail
Chardonnay Cabernet Sauvignon
• Hedges, 2011, Red Mountain,
Yakima Valley, Washington $58/$20
• Colgin, Herb Lamb Vineyard, 2004,
Howell Mountain, Napa Valley,
California $775/$265
• Château Margaux, Premier Cru,
1995, Margaux $1200/$450
• Pichon Longueville-Comtesse de
Lalande, Réserve de la Comtesse,
2006, Pauillac $150/$40
8
• Au Bon Climat, Sanford &
Benedict Vineyard, 2010, Santa
Ynez Valley, Santa Barbara
County, California $70/$44
• Aubert, Lauren Vineyard, 2011,
Sonoma Coast, California
$225/$120
• Chevalier-Montrachet, Jean-
Marc Pillot, Grand Cru, 2008,
Côte de Beaune, $650/$300
• Bouzeron Aligoté, Aubert de
Villaine, 2010, Côte
Chalonnaise, $54/$20

9. WHAT

10. 10
Through
Provides
ADVISE
CONNECT
RESEARCH
VALUE

11. 11
Through
Provides
WHAT
HOW
WHY
WHO

12. 12

13. What Wine?
13

14. The Secondary
Market for
Investment Grade
Wine
14

15. Liv-ex Market
Recent Trades
Latest 25 Trades on Liv-ex
Source: Liv-ex as of 12/05/14. GBP. Current exchange rate 1.65. 15
Liv-ex 100 Index
C Region Wine Vin Size Last Eu/btt Qty
SIB bdxr Ducru Beaucaillou 2011 12x75 636 66.9 3
SIB bdxr Leoville Poyferre 2010 6x75 390 82.0 1
SIB bdxr Montrose 2010 12x75 1,550 162.8 1
SIB bdxr Haut Brion 2009 12x75 5,200 546.0 1
SIB bdxr Mission Haut Brion 2009 6x75 2,000 420.3 2
SIB bdxr Petit Mouton 2009 6x75 535 112.4 2
SIB bdxr Pontet Canet 2008 12x75 565 59.4 2
SIB bdxr Mouton Rothschild 2007 6x75 1,315 276.2 2
SIB bdxr Mouton Rothschild 2006 6x75 1,565 328.9 1
SIB bdxr Lafite Rothschild 2005 12x75 5,400 567.4 1
SIB bdxr Margaux 2005 3x75 1,200 504.4 4
SIB bdxr Pichon Baron 2005 12x75 935 98.2 2
SIB bdxr Mouton Rothschild 2004 12x75 2,645 278.1 1
SIB bdxr Mouton Rothschild 2003 12x75 3,035 318.7 3
SIB bdxr Pontet Canet 2003 12x75 670 70.4 1
SIB bdxr Petrus 2001 6x75 7,400 1,554.5 1
SIB bdxr Cheval Blanc 2000 6x75 2,750 577.9 1
SIB bdxr Giscours 2000 12x75 640 67.2 1
SIB bdxr Latour 2000 12x75 6,700 704.1 1
SIB bdxr Gruaud Larose 1998 12x75 475 49.9 39
SIB bdxw Yquem 1996 6x75 595 125.1 2
SIB bgnr Joseph Faiveley, Latricieres Chambertin 2008 6x75 395 83.0 1
SIB ital Ornellaia 2010 6x75 573 120.4 9
SIB ital Ornellaia 2009 6x75 547 114.9 2
SIB ital Sassicaia 2008 6x75 550 115.6 4

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17. WHY

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19. Wine – Growing Demand,
Rare and Regulated
19
Source: International Organization of Vine and Wine, IWSR. Demeter Group

20. Investment Grade Wine
20
Source:Liv-ex
Liv-ex Investables vs. S&P 500

21. “IOP” Demand
21Source: World Wealth Report 2013. HAGI.

22. 221 year change Q3 ‘12 to Q3 ’13, Art, -3%, Furniture -2%, Chinese 3%, Jewelry 3%, Watches 4%, Wine 3%,
Cars 28%, Stamps 5%, Coins 10%, Index 8%

23. The Wealth Management Market
The Wealth Market
23
Source: 2013 World Wealth Report.

24. HOW

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26. The Catalysts Top storage – further
from the vine the lesser
the wine
Entry point, relative
price, too expensive to
drink, upside
Parker Points, PPP,
production, brand
History of aging,
consistency of vintages
Provenance
Price
Profile
Performance
26

27. The Circle of Wine
•Wine producers, collectors and investors have an obligation to steward
the understanding of fine wine and future growth in the market
•Proper vintage management can support this process
•Engagement with younger demographics can help grow demand 27

28. Market Trends
Diversification away from
Bordeaux
Bordeaux now stabilizing,
new demand
Super Tuscans finding favor
Vintage champagne trading
well
Climate and price are
creating relative value in
back vintages
28
Source: Liv-ex as of 9/12/14
Market Expands Beyond Bordeaux

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30. Sell off in Bordeaux
Creates Opportunity
 The 2009 and 2010 First Growths had an
average rating of 99 points, two of the top rated
vintages of all time in Bordeaux.
 Since the release of the 2009 vintage en primeur,
Lafite Rothschild has contracted over 40%,
Mouton Rothschild 28%, Margaux 22%, Haut-
Brion 19%, and Latour 5%.
 Looking at the return profiles of the 2000 and
1990 Lafites, there appears to be substantial
upside, with returns of 533% and 1,410%,
respectively.
 2009 and 2010 Haut-Brion is the second least
expensive per Parker point at $98 and $99
respectively.
 En primeur pricing appears to be a major driver
of volatility and market perception.
30Source: Liv-ex as of 9/17/13. Constant
currency of 1.55 USD/GBP
En Market
Production % Change Primeur Price RP EP$/PP MKT$/PP
Lafite Rothschild 20,000 (43) 18,600 10,540 98 190 108
Mouton Rothschild 15,000 (17) 12,013 9,920 98 123 101
Margaux 10,000 (22) 12,276 9,610 99 124 97
Haut-Brion 10,500 (16) 11,774 9,920 100 118 99
Latour 18,000 2 17,050 17,360 100 171 174
Average (19) 14,342 11,470 99 145 116
En Market
% Change Primeur ($) Price ($) RP EP$/PP MKT$/PP
Lafite Rothschild (41) 20,150 11,974 99 204 121
Mouton Rothschild (28) 12,090 8,680 99 122 88
Margaux (22) 13,175 10,230 99 133 103
Haut-Brion (19) 12,090 9,765 100 121 98
Latour (4) 17,050 16,275 100 171 163
Average (23) 14,911 11,385 99 150 114
En Market
% Change Primeur ($) Price ($) RP EP$/PP MKT$/PP
Lafite Rothschild 635 2,868 21,080 98 29 215
Mouton Rothschild 364 3,410 15,813 96 36 165
Margaux 370 2,472 11,610 100 25 116
Haut-Brion 192 2,868 8,370 99 29 85
Latour 359 2,868 13,164 98 29 134
Average 384 2,897 14,007 98 30 143
2010 First Growths Return Profile
2009 First Growths Return Profile
2000 First Growths Return Profile

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Cos d’Estournel 2009

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Ducru Beaucaillou 2009

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Montrose 2010

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Guigal La Mouline 2005

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Chapoutier Ermitage l’ Ermite Blanc, 2009

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DRC, DRC 2009

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Grange 2008

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Vega Sicilia 2004

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Sassicaia 2010

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Dom Perignon 1996

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Screaming Eagle 2010

42. WHO

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44. AOCIA What We Do
Advise
Vintage Management
Research
Educate
Connect
Consult
Import
Taste – a lot
44

45. What Clients Want Access to wine
Easy to understand
process
Trustworthy knowledge
Transparent inventory
Valuation services
Vintage management
Actionable content
Risk controls
45

46. The
Differentiato
r
46

47. 47
SAMPLE STATEMENT

48. 48

49. 49
Jennifer Williams-Bulkeley
AIWS
20 Park Plaza, Suite 447
Boston, MA 02116
617 948 2147
#wineassetmgr
www.wineassetmanagement.com
jwb@aocadvisors.com