In last year’s edition of The Wealth Report we introduced the Knight Frank Luxury Investment Index (KFLII).
KFLII combines the performance of nine luxury assets including art, classic cars, watches and stamps, into one composite index.
This year we have updated the index, which, showed growth of 8% in the 12 months to Q3 2013 and 179% over a 10-year period, outperforming many more mainstream investments such as the FTSE 100.
Overall, classic cars have shown the strongest 10-year performance, while furniture has actually fallen in value. See the table below for the performance of the individual segments of KFLII.
The Knight Frank Luxury Investment Index (KFLII)
As well as KFLII, our analysis of luxury spending trends also includes a new Luxury Opportunities Index compiled by Ledbury Research for The Wealth Report.
The index pinpoints the 10 countries with the fastest growing potential for luxury spending in the short and medium term. It tracks the growth in four sectors: Luxury footprint, Wealth Creation, Premium air travel and Economic growth.
Africa scores highly in the index, accounting for five of the 10 locations, but the Middle East takes the top three slots with Qatar in pole position. The US is the only developed nation to feature and there are no Asian countries on the list.
The Luxury Opportunities Index
For more detailed information on the index and other luxury spending trends download The Wealth Report 2014.