Where the rich are investing: how do you compare?


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How does your asset allocation compare to a typical Australian rich person?

A recent survey found that high net worth investors (HNWIs) or those with over $1 million in investable assets have increased their allocation to international investments over the past year, with 40% of them having some offshore holdings; mainly through Aussie direct international shares (34%), unlisted managed funds (33%) and ETFs (21%).

They also put more into cash and property, largely at the expense of direct Australian shares.

wealthy aussies invest compare

NAB Private, in conjunction with research house Investment Trends, identified the average asset allocation of HNWIs at the end of 2017. They had:

  • 34% property (residential, commercial and REITs)
  • 28% direct shares (mostly domestic)
  • 11% all other investments (including private companies)
  • 10% cash (including accounts/savings, fixed income)
  • 7% managed funds (excluding ETFs)
  • 7% term deposits
  • 2% ETFs.

The main investment goal of HNWIs today is to build a sustainable income stream (36%), followed by achieving a balance of capital growth and managing risk (34%), according to the survey.

Investment Trends' research found that there are an estimated 435,000 HNWIs in Australia with over $1million in investable assets.

They are responsible for $1,720 billion in investable assets excluding their own home, own business and own super but including SMSFs.

It found that only 7% of HNWIs have a private banker.

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Susan has been a finance journalist for more than 30 years, beginning at the Australian Financial Review before moving to the Sydney Morning Herald. She edited a superannuation magazine, Superfunds, for the Association of Superannuation Funds of Australia, and writes regularly on superannuation and managed funds. She's also author of the best-selling book Women and Money.

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