Australian UHNWIs more optimistic than global peers

16 March 2023
| By Laura Dew |
image
image
expand image

Almost two-thirds of Australian ultra high-net worth individuals are expecting their wealth to rise this year despite rising inflation and interest rates, significantly higher than the global average.

Research by Knight Frank's Wealth Report surveyed more than 500 private bankers, wealth advisers, intermediaries and family offices who between them managed over US$2.5 trillion of wealth for UHNWI clients.

Some 65% expected their wealth to rise, 29% expected it to stay the same and just 6% thought it would decrease.

This figure was higher than the global average with 86% globally expecting wealth to remain the same or increase compared to 94% in Australia. 

Knight Frank chief executive, James Patterson, said: “Australia is considered a safehaven to growth wealth and we tend to be more shielded from global economic factors than other countries around the world, which goes a long way to explaining why Australian UHNWIs are more optimistic about wealth creation this year than their global counterparts”.

Their expectations were based on past performance with 71% of Australian UHNWIs indicating their wealth had increased in 2022 compared to 40% globally.

This was the result of allocations to residential and commercial property which was cited as the number one driver of wealth performance in 2022.

Knight Frank head of residential research, Michelle Ciesielski, said: “Property is a perceived inflation hedge and is seen as a safe and secure investment in times of uncertainty, as well as offering diversification benefits.

“Alongside real estate, the other top three drivers of performance in 2022 were currency trades, market timing and the return of cash, for the first time in more than a decade.”

However, Australian UHNWIs were more worried than their global peers about the impact of rising inflation at 94% compared to 80% globally and it was cited as the top risk for 2023 followed by interest rates.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 2 weeks ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 6 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

1 day 3 hours ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 4 days ago