London, UK - The Knight Frank Luxury Investment Index (KFLII) rose in value by 10% during 2014, according to data in the latest edition of The Wealth Report.
Classic cars (+16%) were again the top annual performer in the index, which tracks the price growth of 10 luxury investment sectors. (See table below)
However, the performance of cars was markedly slower than in 2013 and they only just overtook art (+15%), which has bounced back strongly after several years of limited or even negative growth, to take pole position.
Coins (+13%) were the only other asset class to record double-digit growth, although Chinese ceramics and wine performed more strongly than in recent years, rising by 9% and 7%, respectively.
Furniture was the only component of the index to lose value, sliding by a further 9%.
Wealth Report Editor Andrew Shirley said: "Last year our luxury investment index outperformed the FTSE 100, gold and the prime central London housing market, so it not surprising that these kinds of luxury investments are becoming increasingly popular with UHNWIs.
"Over 60% of the respondents to this year's Wealth Report Attitudes Survey said their UHNWI clients were becoming more interested in collecting investments of passion.
"However, it would be wrong to assume that continual growth is guaranteed in the short term. Both wine and art have been particularly volatile since the global financial crisis.
"Changes in fashions and tastes can also have an impact, which helps to explain why antique furniture has performed so badly over the past 10 years."
Sources: Art Market Research (Art, Watches, Furniture, Jewellery, Chinese Ceramics); Stanley Gibbons (Stamps, coins); HAGI (Classic cars); Wine Owners (Wine); Fancy Color Research Foundation (Coloured diamonds)
*Except coloured diamonds (Jan 2005 to October 2014)
**KFLII is weighted based on the contribution of each component
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© Press Release 2015
