Assets held by Australia’s wealthy have reached record levels as Trump’s tariff shock triggered investor concern surpassing Covid-era highs.
Australia’s high-net-worth (HNW) population has risen to 760,000, controlling a record $4 trillion in assets, according to LGT Wealth Management’s 2025 State of Wealth report released today.
Investor concern also spiked this year, with sentiment reaching 7.9 out of 10 during Donald Trump’s April tariff announcement, eclipsing the 7.2 peak seen during Covid, while stockmarket expectations fell to -10.7 per cent.
However, this decline proved temporary, with expectations rebounding into positive territory by June as markets stabilised.
The report, now in its fifth year, surveyed 1,191 Australians with more than $1 million in investable assets, including 168 ultra-high-net-worth participants. It details how wealthy Australians are managing risk amid global volatility and the largest intergenerational wealth transfer in national history.
The HNW population grew 18 per cent over the past year, while the ultra-wealthy cohort expanded by 19 per cent, with average wealth rising to $18.9 million.
Despite heightened concern, two-thirds of HNWs made no major portfolio adjustments during the year, sending substantial changes to a decade low. Overall, two-thirds (66 per cent) of all HNW investors made portfolio changes of 10 per cent or less through 2025, the lowest level since 2017.
Interest rates and market volatility were the dominant drivers of investment decisions, cited by
63 per cent and 60 per cent of investors respectively. Geopolitical tensions, global economic uncertainty and regulatory changes were also top of mind for HNW investors.
Adviser reliance has grown, with 26 per cent of HNWs now receiving professional guidance, representing $1.41 trillion or 35 per cent of assets.
Chief executive Michael Chisholm said this investor discipline was the standout trend for the year.
He noted that “staying the course takes discipline and perspective,” and said wealthy Australians were behaving “more like global institutions” by remaining focused on diversification and long-term goals.
Looking at asset allocation trends, directly-held equities were the dominant core holding with 35 per cent of HNW portfolios being exposed to the asset, up from 30 per cent in 2024.
But it varied by demographic with HNW investors significantly increasing their exposure while UHNW ones held significantly lower exposure than their HNW counterparts at 22 per cent and 29 per cent respectively.
Exposure to property fell, especially for advised clients where it dropped from 32 per cent to 25 per cent.
LGT commented: “The willingness to hold overseas equities directly, rather than via managed funds, was also noteworthy, with 6 per cent aggregate exposure. Particularly enthusiastic about direct international shares were the UHNW clients, who allocated 8 per cent of their portfolios to this class, clearly taking an optimistic longer-term view of the opportunities beyond our shores.”
“Across all asset classes, significant growth was seen in exposure to alternatives (private
markets, infrastructure, and the increasingly mainstream cryptocurrency), which doubled to
around 10 per cent across all HNW, and exposure to ETFs, which increased by around one third – to 7 per cent. UHNW investors exhibited an even higher appetite for alternatives, with exposures closer to 17 per cent.”
Reasons for their increased alternatives exposure ranged from higher expected returns, exposure to unlisted assets and portfolio diversification.
Allocations to private markets have also grown, rising to 10 per cent overall and around 17 per cent among UHNWs, with participation increasing to 171,000 from 146,000 last year.
Chisholm said private markets had become “a core part of portfolio construction” and emphasised that investors were increasingly seeking “resilient income opportunities and experienced managers who can manage risk through the cycle.”
He added that strong due diligence was essential as dispersion widens across private markets.
Sustainable investing has further entered the mainstream, with 30 per cent of HNWs holding responsible investments and, on average, 35 per cent of portfolios aligned to sustainability. Values and ethics remain the top motivation, cited by 65 per cent of HNWIs, while adviser-supported clients are far likelier to integrate responsible strategies.
Chisholm said many investors now expect their money to reflect their priorities, noting that environmental or social outcomes are seen as an additional benefit rather than a trade-off.
The report also highlights that women are driving much of this shift, with 37 per cent of female HNWIs prioritising ethical or ESG considerations compared with 29 per cent of men, and allocating a greater share of their portfolios to sustainable investments.
Chisholm said women are poised to become “a defining force” in the next wave of wealth creation as they inherit and control more capital.
