690,000 Australian HNWs control $3.4t

690,000 high net worth (HNW) Australians collectively managed around $3.4 trillion in investable assets, according to new analysis conducted by Investment Trends and sponsored by platform provider, Praemium.

The analysis said there had been record growth in the number of HNW individuals and the wealth they controlled, with the 690,000 number having risen by 8.7% over the past 12 months.

It said that, against the background, the need for specialised advice is increasing as the HNW shift their priorities.

“As the financial landscape changes, HNW investors are shifting their priorities from income generation to a more balanced investment approach that includes capital growth and wealth preservation,” the analysis said.

“The growing interest in private markets is evident, with 146,000 HNW investors currently engaged in private market investments and an additional 32,000 planning to enter this space within the next year. This trend reflects a desire for diversification and higher returns, particularly among UHNW individuals, who are drawn to the potential of private equity, venture capital, and private debt funds.”

It noted that despite the rise in wealth and sophistication among HNW investors, there remains a substantial demand for specialised advice.

“Key areas that HNWs say they require advice include estate planning, tax optimisation, and investment strategy reviews,” it said.

“A sizeable proportion of HNW investors, particularly those in the $5 – $10 million range, are seeking expert guidance to navigate the complexities of managing substantial wealth and preparing for intergenerational transfer. Additionally, as more investors take a self-directed approach or seek episodic advice, the role of advisers in providing targeted, specialised advice becomes even more critical.”

Commenting on the research results, Praemium chief strategy officer, Denis Orrock noted the shift in the investment and advice requirements for HNWs.

“As these investors grow in number and wealth, the advice and wealth management sector have a significant opportunity to provide tailored, high-value services that address their evolving priorities,” he said.

“By focusing on personalised strategies, building collaborative, engaging services, and addressing tax and estate planning needs, advisers can play an integral role in helping clients navigate the complexities of wealth management.”