Aussie high-net-worth investor numbers steady

According to the 2022 High Net Worth Investor Report, a study of Australian high-net-worth investors’ (HNWI) investing behaviour, product needs and advice needs, the population of those who control over a million dollars in investable assets was 625,000 in 2022, down from 635,000 in 2021, but still much larger than 485,000 in 2020.

Despite this decrease from the rapid period of asset growth in 2021, the total investable assets were largely steady. Collectively, HNWIs control $2.82 trillion, up from $2.72 trillion in 2021.

“Investors continue to have substantial exposure to property and direct shares, key pillars of their investment portfolio,” said Dr Irene Guiamatsia, head of research at Investment Trends.

“Over recent years, they’ve also significantly increased their allocation to ETFs.”

The research also revealed that for the second year running the proportion of HNWIs making substantial asset allocation changes to their portfolio has dipped. In 2022, 37 per cent changed at least 10 per cent of their portfolio, compared with 41 per cent in 2021 and a record high of 50 per cent in 2020.

“Looking ahead, HNW investors have recalibrated their investment goals in line with a more subdued outlook for the next twelve months, and increasingly more are looking to protect their wealth against a market downturn,” noted Dr Guiamatsia.

“Correspondingly, demand for asset classes is evolving, with fixed income emerging as an area of particular interest.”

Financial advisers can expect to help these investors when it comes to inter-generational planning discussions, with HNWIs expecting to pass down close to $2 trillion worth of assets to the next generation.

“This annual research always explores in a great deal of detail how product issuers, advice providers and technology providers can best support high net worth investors. This year’s report shines a light on the sharper focus HNW families are placing on wealth preservation across generations,” added Dr Guiamatsia.