Australia’s high-net-worth population is growing – fast – and the wealthiest of those saw their portfolios rise across 2025 despite episodes of volatility, a new LGT Wealth Management Report shows.
Key Takeaways
- There are an estimated 760,000 high-net-worth (HNW) investors in Australia collectively holding about $4 trillion in investable assets.
- Within this group, the ultra-high-net-worth (UHNW) (those with over $10 million) segment grew the most, and recorded the strongest average portfolio increase (14%).
- Two-thirds of HNW investors made no significant portfolio changes during the year, and directly-held equities remained the core holding.
- HNWs are broadening their horizons in 2025 with more exposure to alternative investments like private markets, infrastructure and cryptocurrency.
- HNWs have about $2.26 trillion earmarked for transfer to the younger generation.
Key background
Against a backdrop of geopolitical tensions and market volatility (primarily due to US tariff announcements in April this year), the number of Australian high-net-worths (HNW) continued to grow, and their portfolios rise and ultra-high-net-worths (UHNWs) (those with more than $10 million in assets) recorded the strongest average portfolio increase (14%).
Big number
760,000.
That’s how many HNW investors there are in Australia that collectively hold around $4 trillion in investable assets. 34,500 of these are categorised at UHNW (those with $10 million or more), and this segment experienced 19% annual growth, deepening the concentration of wealth at the top end.
Top investments in 2025
Direct Australian shares.
Among all HNWs, direct Australian shares were the largest segment of investment portfolios (29%), followed by property (25%). While the portion of property investments remained steady in UHNWs and advised HNWs, the portion of direct Australian shares increased to 35% in advised HNWs, and decreased to 22% in UHNWs (UHNWs held a larger share of direct international shares).
Where the money’s going
Alternatives.
The report found that – compared to previous years – HNWs were broadening their horizons in 2025 with more exposure to alternative investments like private markets, infrastructure and cryptocurrency. UHNWs had an even higher appetite for alternatives (17% compared to 10% for HNWs).
Private market investments are also on the rise, with the number of HNWs invested growing from 146,000 in 2024 to 171,000 in 2025 (an increase of 17%). This is being driven by the desire to generate healthy income flows as interest rates trend down.
The report also found that allocation to property fell in 2025, particularly among advised HNWs, though looking at forward investment intentions, this is the sector investors are likely to be most active in over the coming year.
Potential risks
The intergenerational wealth transfer.
HNWs have about $2.26 trillion earmarked for transfer to the younger generation – and sooner than they thought, thanks to rising house prices and cost of living pressures.
Almost 60% of HNWs say they’ve either already commenced, or intend to commence, the transfer of their wealth to younger generations. But the report says that the rise of blended family structures has escalated the risk of transfers being disputed, and potentially wealth-eroding legal battles. Beneficiary readiness is also a large concern for HNW investors.
Surprising trend
Sustainable investing.
Investors say they’re increasingly investing in alignment with their personal values and ethics. In 2025, 230,000 HNWs (or 30% of the cohort) reported holding sustainable investments – and a further 70,000 (9%) say they plan to start investing sustainably in the coming year. Female HNWs are driving the charge, with 37% selecting investments on ethical or ESG-related grounds, compared to 29% of male HNWs.
The report found that UHNWs are also proportionately more motivated to make an environmental or social impact relative to HNW investors overall, perhaps being in a stronger position to focus on creating a legacy with their wealth.
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