{"id":4673,"date":"2020-06-19T12:14:10","date_gmt":"2020-06-19T03:14:10","guid":{"rendered":"https:\/\/wealth-park.com\/?post_type=wealthpark&p=4673"},"modified":"2022-08-03T15:39:51","modified_gmt":"2022-08-03T06:39:51","slug":"investing-lessons-from-the-ultra-wealthy","status":"publish","type":"wealthpark","link":"https:\/\/wealth-park.com\/en\/wealthpark-blog\/investing-lessons-from-the-ultra-wealthy\/","title":{"rendered":"Investing Lessons from the Ultra-Wealthy"},"content":{"rendered":"

\"\"<\/p>\n

In this article, we will take a macro view of the world\u2019s wealth and asset composition.
\nAccording to The Wealth Report (2020 \u2013 14th edition), published by Knight Frank as a Global Real Estate Consulting Company, America dominates the top spot for being the country with the most UHNWIs (individuals with a net worth of over US$ 30 million or more) in the world (Figure 1). The report also forecasted the highest growth of UHNWIs (ultra-high net worth individuals) in Asia driven by India, China, Vietnam, and Indonesia.<\/p>\n

Figure 1 \u2013 UHNWIs (net worth exceeding US$ 30 million [ approx. JPY 3 Billion ])
\n\"\"<\/p>\n

Source: The Wealth Report (2020 \u2013 14th edition), Knight Frank
\nFrom the asset allocation breakdown of these UHNWIs (Figure 2), we see real estate investments account for one-third of their total asset.
\nIn the equity investments segment, we witnessed double-digit growth in the US, Germany, and Australian market and significant increase in the UK and Japanese market. This globally equity markets boom in 2019 contributed significantly to the increase in assets of the UHNWIs.
\nAlthough investment in gold and precious metals accounts for less than 3% of the total, investments in gold, a standard for safe assets, increased last year.<\/p>\n

Figure 2 \u2013 Asset Allocation of the UHNWIs
\n\"\"<\/p>\n

Source: The Wealth Report (2020 \u2013 14th edition), Knight Frank
\nThe collectables in Figure 2 refer to whiskeys, antique cars, coins, artworks, wines, handbags, jewelry, colored diamonds, stamps, and watches. This asset class requires a relatively long time to see the rate of return and Knight Frank has provided us insights into the top 5 collectables comparing the value increase for the past year versus the past decade (Figure 3).<\/p>\n

Figure 3 \u2013 Value Growth of Collectables (Past 1 year vs Past 10 years)
\n\"\"<\/p>\n

Source: The Wealth Report (2020 \u2013 14th edition), Knight Frank
\nWhiskey fell 2.7 percent in the first half of the year due to an oversupply of whiskey from market leader Macallan. But whiskeys\u2019 secondary market boomed in the second half of the year, with prices such as Scotch rising by 5% over the past year. There has been a high demand for whiskeys from the following distillers: Dalmore, Springbank, Ardbeg, Lagavulin, Bowmore, and Brora.
\nOver the past year, art prices centered on works by impressionist painters and contemporary artists, have risen by 5 percent. Milestone transactions include the sale of Invader\u2019s Mosaic TK_119 (Sotheby\u2019s expected sales price: JPY 10 million; Final sales price: JPY 120 million) and Banksy\u2019s Devolved Parliament (Sotheby\u2019s expected sales price: JPY 200 million; Final sales price: JPY 1.3 billion).
\nIn the wine asset class, while Bordeaux and Burgundy prices fell, Champagne and Northern Italian wines rose by 6-8%. The relatively high growth rate of -8% contributed to an overall increase of 1% compared with the last year.
\nThis time, we\u2019ve taken a look at the UHNWIs and their asset allocation. Although real estate and listed company equity constitute a major portion of the asset allocation, the ownership of private equity and collectables are extremely interesting and material.
\nWe’ve only scratched the surface this time, but we’ll be going into more detail on each asset class in the future.<\/p>","protected":false},"featured_media":38183,"template":"","categories":[41],"tags":[49,69],"class_list":["post-4673","wealthpark","type-wealthpark","status-publish","has-post-thumbnail","hentry","category-articles","tag-cio","tag-propertymarket"],"acf":[],"_links":{"self":[{"href":"https:\/\/wealth-park.com\/en\/wp-json\/wp\/v2\/wealthpark\/4673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wealth-park.com\/en\/wp-json\/wp\/v2\/wealthpark"}],"about":[{"href":"https:\/\/wealth-park.com\/en\/wp-json\/wp\/v2\/types\/wealthpark"}],"version-history":[{"count":1,"href":"https:\/\/wealth-park.com\/en\/wp-json\/wp\/v2\/wealthpark\/4673\/revisions"}],"predecessor-version":[{"id":8921,"href":"https:\/\/wealth-park.com\/en\/wp-json\/wp\/v2\/wealthpark\/4673\/revisions\/8921"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wealth-park.com\/en\/wp-json\/wp\/v2\/media\/38183"}],"wp:attachment":[{"href":"https:\/\/wealth-park.com\/en\/wp-json\/wp\/v2\/media?parent=4673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wealth-park.com\/en\/wp-json\/wp\/v2\/categories?post=4673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wealth-park.com\/en\/wp-json\/wp\/v2\/tags?post=4673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}