Australian investors have an undeniable bias towards property. New research from NAB’s private bank shows this is no different at the top end of the food chain.
Having teamed up with researcher Investment Trends, the bank conducted a study in which found there are an estimated 435,000 Australians who they consider “high-net-worth” (HNW), meaning they have $1 million to invest or more.
The research also showed what the average investment portfolio of these wealthy Australians looks like. And while you might think the richest among us would be invested in fancy or complex products like hedge funds, turns out the top 1.7 per cent also subscribe to the ‘safe as houses’ philosophy.
Here’s what the average HNW portfolio looks like:
34 per cent – Property (residential, commercial and real estate investment trusts)
28 per cent – direct listed shares (mostly domestic Australian)
11 per cent – all other investments (including private companies, etc.)
10 per cent – cash (including accounts, savings and fixed income products)
7 per cent – managed funds
7 per cent – term deposits
2 per cent – exchange-traded funds (ETFs)
(NB: Numbers as at end of 2017)
Wealthy Australians have increased their allocation to property and cash over the past year, pulling funds out of the stock market, the research found.
They have also increased their exposure to international investments such as shares and offshore managed funds.