Institutional Asset Manager Newsletter 28.06.24

Bring on the champagne

Julius Baer has published its Global Wealth and Lifestyle Report 2024 this week which reveals that despite a challenging macro-economic backdrop, there is still appetite for the good things in life among the wealthy.
The report says that in London ‘stylish individuals will not be pleased that fashion and luxury goods such as shoes (+15 per cent), handbags (+11 per cent) and jewellery (+11 per cent) have all seen double digit price increases in the last year, greater than in rival European fashion capitals such as Milan and Paris’.
The firm also notes that, for those in London who prefer a fine Whisky or Champagne, there is some good news as the price of Whisky (-19 per cent) has significantly decreased YoY, while for Champagne the city is among the most relatively affordable places in the world to pop a cork.
Sustainability is also featuring, with the report saying: "While personal enjoyment remains a key pursuit, sustainability plays a greater role in investment strategies in 2024 for almost all HNWIs in APAC, the Middle East, and Latin America. More responsible investments have been made in these three regions, with the majority of HNWIs having reviewed their portfolio to understand the ESG impact of their investments, with a significant higher ESG orientation than in Europe and North America. However, what is true for investments is not true for goods, as sustainability still plays a minor role in actual purchasing habits."
Our opinion piece this week sees Anton Tonev, head of strategy, Trium Larissa Global Macro writing that the weakness of the Japanese Yen (JPY) is becoming disorderly to the extent it is starting to worry the Ministry of Finance (MOF), prompting it not only to ask the Bank of Japan (BOJ) to intervene directly in the currency market but also putting pressure on the central bank to expedite and increase the pace of interest rate hikes.
The Julius Baer report found that the fall in the Yen had pushed Japan down from 15th to 23rd in the rankings, causing APAC to drop behind EMEA as the most expensive region.

Beverly Chandler, Managing Editor, Institutional Asset Manager
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