A new report published by Praemium in association with Investment Trends reveals the number of high net worth individuals in Australia has grown to 690,000, marking an 8.7% increase on the previous year’s figure of 635,000.

Together, these investors now control $3.4 trillion in investable assets, up from $2.98 trillion in 2023.

According to Praemium, this remarkable expansion highlights the vigorous accumulation of wealth among Australia’s wealthy, with ultra-high net worth (UHNW) individuals enjoying double-digit growth in their portfolios over the past year.

"High net worth investors in Australia remain a dynamic and ever-evolving segment and this year's research highlights a marked shift in their investment and advice requirements," said Dennis Orrock, Chief Strategy Officer of Praemium.

"As the number and wealth of these investors grow, the advisory and wealth management sector has a significant opportunity to provide high-value, personalized services that meet their evolving priorities."

The report also highlights a shift in investment priorities among HNWs. Namely, while income generation was previously the primary focus, investors now prioritize a balanced approach that emphasizes capital growth and wealth preservation.

The growing trend towards private market investing is evident, with 146,000 HNW investors currently engaged in this space and another 32,000 planning to invest in private equity, venture capital and private debt funds over the next year.

"This trend reflects a desire for diversification and higher returns, particularly among UHNWs who are attracted to the potential of private equity, venture capital and private debt funds," the study said.

Despite the rise in wealth and sophistication among HNW investors, the research also pointed to "significant demand for specialist advice". Key areas that HNWs say they need advice on include estate planning, tax optimization and reviewing investment strategy.

Additionally, the report reveals that $1.9 trillion is expected to be passed down to the next generation, placing significant emphasis on wealth transfer planning. Additionally, a growing number of investors are integrating philanthropy into their financial strategies, with 40 percent intending to give away some of their wealth to charitable causes.

This shift provides new opportunities for advisors to help clients align their financial legacy with their personal values ​​through strategic philanthropic planning.

The research is based on a quantitative online survey of high net worth investors conducted by Investment Trends between June and July 2024, with a total of 1,530 validated responses.