International property investment specialists, Knight Frank have just published their annual wealth report providing a review of the current investment trends of ultra high net worth investors around the world.
The 2017 Wealth Report studies the performance of asset classes with a particular focus on property but KF have also created an interesting market guide to the performance of a collection of luxury assets attracting significant investor attention. These are all monitored in the Knight Frank Luxury Investment Index (KFLII), which includes classic cars, fine wine, art, rare coins and stamps, vintage watches, jewellery, Chinese ceramics and antique furniture.
(Source: Knight Frank Wealth Report 2017)
Fine wine’s stellar performance in 2016, resulted in the asset topping the KFLII, recording 24% growth in the Knight Frank Fine Wine Icons Index, outstripping previous luxury investment leader, classic cars which saw 9% increase in the same period.
Regional wine performance was monitored, with blue-chip Burgundy maintaining its on-going strong performance at 31% growth and the most expensive auction sale in 2016 of £129,250 for a case of 1988 Romanée-Conti was also recorded. The continued growth in investment-grade Californian wines was also picked up in the report where they record a 34% growth last year along with Italy at 28%.
The Attitudes Survey measured investment motivators, the most important being recorded as:
- Wealth preservation
- Capital growth
- Passing wealth to the next generation / succession planning
- Income return
- Portfolio diversification
- Minimising risk
- Minimising tax liability
- Portfolio Liquidity
To read the fascinating detail in full – please click here http://www.knightfrank.co.uk/blog/2017/03/01/liquid-assets-wine-tops-luxury-investments