Australia’s population of high net worth investors (HNWIs) has reached a record of 760,000, collectively holding more than $4 trillion in investable assets, according to a recent report by Investment Trends. The report highlights significant growth in the wealth segment, particularly among ultra-high net worth individuals. Investment Trends is a research company that provides insights and analysis on the financial services industry. It offers data and consulting services to help businesses make informed decisions.
According to Investment Trends chief executive Eric Blewitt, the number of ultra-high net worth investors – those holding more than $10 million in assets – grew by 19 per cent over the past year, reaching approximately 32,000 individuals. The average portfolio values for this group also increased, rising by 14.5 per cent. This growth indicates a strong performance in the investment strategies employed by these high-net-worth individuals.
Listed assets remain the most popular allocation for HNWIs, accounting for 53 per cent of their portfolios. Property follows with 25 per cent, while cash holdings represent 10 per cent. Alternative investments, including private markets, have seen a notable increase, doubling to an average of 10 per cent of HNWI portfolios. However, Blewitt noted that transparency remains a significant concern for HNWIs investing in private markets, despite their expectations of higher returns.
The research also revealed an increasing demand for financial advice among HNWIs. The number of HNWIs using financial advisers has risen from 22 per cent to over 26 per cent, now reaching 200,000 individuals. Despite this increase, 58 per cent of HNWIs report unmet advice needs, particularly in areas such as wealth transfer and estate planning. While digital advice can address simpler needs, human advisers remain crucial for handling more complex financial matters.
