Australia’s wealthy now command a record $4 trillion in investable assets, according to Michael Chisholm of LGT Wealth Management. Chisholm points to an 18% increase in the wealth pool and a 10% annual jump in the number of high net worth individuals, now standing at 760,000. The ultra high net worth cohort has grown 19%, and on average each now manages just under $19 million. Despite economic uncertainty and external shocks such as the introduction of new tariffs by Donald Trump, Chisholm describes this group as increasingly adopting an institutional approach, displaying discipline and avoiding major portfolio changes during turbulent times.
Chisholm notes a notable shift in how these investors are allocating their assets, with a much greater focus on private markets. High net worth investors now allocate about 10% of portfolios to private markets, almost double last year’s level, while the ultra-high net worth segment has almost tripled its allocation to 17%. The draw is diversification and higher return potential, with a growing interest in private credit, which Chisholm views as poised to attract more inflows than private equity in the coming year.
Intergenerational wealth transfer is a growing focus, with nearly 60% of high net worth investors beginning to plan or already engaged in transferring wealth. Structure, tax strategies, and long-term legacies are key priorities, but Chisholm sees estate planning advice as a significant need yet to be fully addressed.
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