HNWs invest heavily via SMSFs

Written by Staff Reporter Thursday, 20 March 2014

High net worth (HNW) investor numbers have climbed by nearly 10 per cent in 12 months, with a third of their collective $1.39 trillion in assets via SMSFs, according to Investment Trends.

Investment Trends, in its 2013 High Net Worth Investor Report, stated that the number of HNW investors increased by eight per cent from 370,000 in 2012 to 400,000 in 2013, with HNW investors considered to be those with more than $1 million in investable assets outside of their home, business or superannuation.

Investment Trends included SMSFs as an investable asset for HNW investors and found that $430 billion, or 31 per cent of HNW investors' collective assets, were invested via an SMSF.

The report also found that HNW investors, for the first time since 2009, have shifted their investment focus away from defensive assets towards direct shares, exchange traded funds and hybrid securities.

HNW investors increased their proportion of assets in direct shares from 26 per cent to 32 per cent during the year.

The number of HNW investors with assets in direct shares also increased, rising from 85 per cent to 90 per cent while the average amount invested in direct shares rose from $950,000 in 2012 to $1.15 million in 2013.

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