Now in its fifth year, the study suggested a shift in investor behaviour marked by greater discipline, broader diversification, and increasing reliance on professional advice.
That sentiment was tested earlier this year when new US tariffs under Donald Trump drove investor concern to 7.9 out of 10 – above the 7.2 peak recorded during the Covid period.
The findings are based on a survey of 1,191 Australians with more than $1 million in investable assets, including 168 ultra-high-net-worth respondents with more than $10 million. The report examines how wealthier Australians are adjusting investment strategies amid global uncertainty and the country’s largest intergenerational wealth transfer.
Australia’s HNW cohort grew 18 per cent over the past year to 760,000 individuals. The UHNW segment grew slightly faster at 19 per cent, with average wealth rising to $18.9 million.
Despite that growth, investors were more cautious through 2025. The tariff shock in April pushed concern levels to 7.9 out of 10, though most respondents opted against major repositioning.
Two-thirds reported making no significant portfolio changes, marking the lowest rate of alteration in a decade. Use of professional advice continued to increase, with 26 per cent now advised – accounting for $1.41 trillion, or 35 per cent, of HNW assets.
“What’s striking is how calm investors have been,” said Michael Chisholm, CEO of LGT Wealth Management in Australia.
“Staying the course takes discipline and perspective, and Australia’s wealthy are showing both. They’re thinking more like global institutions – measured, diversified, and focused on long-term goals – while leaning on advice and making informed decisions with family and legacy in mind.”
The report estimates that $2.26 trillion of the expected intergenerational wealth transfer is already underway. A majority of HNWs now discuss inheritance and estate planning with advisers (61 per cent), and 70 per cent of advised HNWs have either begun transferring wealth during their lifetimes or plan to do so.
However, gaps in support remain. More than half of wealthy Australians say they lack adequate guidance on tax and estate structures, administrative requirements, long-term wealth preservation and preparing beneficiaries.
“With a historic transfer of wealth now reshaping Australia’s financial landscape, clients are seeking guidance that brings both clarity and purpose to their decisions,” Chisholm said.
“The role of quality advice has never been more vital.”
Private markets continued to gain traction among wealthier investors. Allocations now average 10 per cent across HNWs and around 17 per cent among UHNWs. Participation rose to 171,000 investors in 2025, up from 146,000 last year.
The report suggests that increased dispersion across private market strategies is intensifying the need for deeper adviser involvement – particularly in assessing manager quality, risk controls and due-diligence standards.
“Private markets are now a core part of portfolio construction,” Chisholm said.
“We’re seeing a real flight to quality – investors are prioritising resilient income opportunities and experienced managers who can manage risk through the cycle.”
Sustainable investing has become a mainstream feature of HNW portfolios. Thirty per cent of investors now adopt sustainability strategies, with around 35 per cent of their assets aligned to responsible investments. Personal values remain the primary motivator, cited by 65 per cent of HNWIs and about 60 per cent of UHNWs, with performance expectations also rated highly.
Advisers appear to play a notable role in adoption, with advised clients significantly more likely to integrate responsible investment approaches.
“At its heart, this is about values as much as returns,” Chisholm stated.
“Investors expect market-level returns at a minimum. What’s changing is that many now also want their money to reflect what matters to them.”
The report highlights that women are driving much of this momentum. Thirty-seven per cent of female HNWIs select investments based on ethical or ESG considerations, compared with 29 per cent of men, and allocate a greater share of their portfolios to responsible investments.
“Women stand to become a defining force behind the next wave of wealth creation,” Chisholm said.
“They’re using that influence to back investments that perform well and make a difference – proving that performance and purpose can go hand in hand.”
Overall, the 2025 State of Wealth report points to a wealthier but more deliberate investor cohort. Respondents appear increasingly focused on diversification, long-term planning, and using advice to support decision-making as global conditions become more complex.
“As the world becomes more complex, wealthy Australians are taking a steadier, more purposeful approach,” Chisholm concluded.
“They’re diversifying, planning ahead, and making sure their wealth carries meaning for the next generation.”
