How Do Superyacht Owners Manage their Global Assets?
We look into the typical lifestyle of a UHNWI with a superyacht, private jet and multiple properties across the globe. How they spend their money and the huge Foreign Exchange fees they incur.
The following demonstrates the potential savings that the Voly platform could offer based on the real-life demands of a UHNWI.
7 Global Assets of a UHNWI
THE SUPERYACHT
A 70-metre motor yacht, with an annual operation cost (including crew payroll) of €13.3 million. Chartered in the Mediterranean for €650,000 per week and is booked for eight weeks, resulting in an income of €5.2 million. In the winter season it has a €12.3 million refit, which was paid in eight instalments to the refit yard.
THE PRIVATE JET
A Gulfstream G650. This costs $5.725 million per year, of which 37.5% is out of currency (for a total of $2.146.875).
THE MEDITERRANEAN HOLIDAY HOME
The mediterranean is a must location for a superyacht owner, with a villa set on the coastline near Porto Cervo costing €2.4 million per year, funded with €200K worth of currency bought monthly.
DAUGHTER’S ACCOMMODATION AT UNIVERSITY
The UHNWI has a daughter is based in Singapore, and he pays for her accommodation at a cost of S$252,000 per year.
THE LONDON PAD
Often in London for business the UHNWI decided to make sure he has a permanent base in the capital. This costs him £3.156 million per year, which he funds in sterling currency that he buys monthly.
THE NEW YORK HOME
With a main house in New York, this is where the UHNWI officially calls home, in a stunning Manhattan apartment which costs $3.65 million per year.
THE FLORIDA PALM BEACH HOLIDAY HOME
A must have for every UHNWI, a beach front holiday home in West Palm Beach at the cost of $3.527 million per year.
TIME SAVING
The family office of the UHNWI could save huge amounts of time for the client’s personnel admin by using Voly. Processing all these assets would have resulted in 4,903 invoices, when auto reconciled within Voly at a saving of five minutes per invoice. Meaning that a total of 24,515 minutes, or 51 working days, could have been saved by using Voly’s Financial Management Platform. This time saving demonstrates the impact that Voly can also have on streamlining the financial process of a UHNWI family office and operations.
TOTAL SAVING
The UHNWI has $12,877,000, €33,200,000 and S$252,000 worth of exposure annually.
With live exchange rates, Voly estimates that the client would have been able to save a total of $417,603 if he had been using Voly’s Financial Management Platform.
FINDINGS
Our analysis of a UHNWI proves, the amount of money that can be lost by not considering foreign exchange fees can quickly add up to a significant sum. To help deal with these high levels of exposure Voly has recently launched a specific treasury management team, alongside the Voly platform, provides a full end-to-end solution.
Voly Money - Multi-Currency Accounting & Payment Platform
One platform for all accounting including, cash, card, invoices, payments,
FOREX and financial reporting which includes:
Enjoy the benefits of making flexible payment directly to suppliers in 37 currencies
Buy and sell currency at competitive rates
Reconcile transactions across multiple currencies
Convert transactions into single reporting currency
Accurate, live daily exchange rates
Real-time account valuations
Find out more about Voly’s Treasury Financial Management Platform