2013 Luxury Assets and Investment Report by APW Asset Management

    LONDON, ENGLAND, October 24, 2013 /24-7PressRelease/ -- While most of us seek investments that will make our money work for us, there are those that invest simply to have something to brag about at events and dinner parties, or so it would seem.

Recent studies show that wealthy investors worldwide are looking for assets that satisfy three key areas; head, heart and wallet. Our report shows which collectable assets bridge the gap between investments and passion, and why the super rich are spending more than ever on bragging rights.

Figures show that between 2008 and 2012 investments of passion or luxury investments increased in value at a compound annual rate of 14.58%, from $210 billion to $362 billion, with big spending millionaires from developed countries leading the way. However, those from emerging countries registered the strongest growth with a compound rate of 22.24% in the same period.

Jamil Harris, Senior Portfolio Manager at APW Asset Management, one of the leading fine wine investment advisory agencies in the UK said, 'we believe the trend will continue. Recent reports show that between 2013 and 2017, the total luxury investments of the super rich is expected to grow at an annual rate of 10.34% and investments will reach as high as $621 billion. We have always considered fine wine to be an essential element of any investment portfolio. Fine wine not only offers diversification, its is a tangible asset and can generate good returns while reducing portfolio risk.'

Classic cars, Jewelry, fine art, watches, stamps, gems and fine wine were the most popular 'investments of passion' for the high net worth investors (those with net assets of GBP 20 million plus) in 2012. This class of investor allocated approximately 4-5% of their portfolios to these types of investments last year. These investments can be seen as "luxury" or "passion" in that they can be admired, worn, displayed, consumed or driven, while still appreciating in value.

One would think these people were simply throwing their money away or investing with little care of returns because they can afford to? Wrong. Over the last 10 years these collectable investment assets have grown by 175% with Classic cars leading the way, they rose by 395%, gold by 433%, and fine wine by 166%, compared with the 36% of the UK FTSE 100 index, including dividend. According to these figures it would seem contrary to popular belief, the rich have more brains than money.

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