praemium

An annual survey of high-net-worth investors shows an increase in the richest Australians over the past year, even as the share of those receiving financial advice has fallen. With the largest intergenerational transfer of wealth in history on the line, a better-aligned approach may be needed.

With higher interest rates and inflation upending investment dynamics, advisers say they’ve already begun transitioning their clients toward fixed income and defensive assets following a long period when duration didn’t have much to offer.

While advisers are still the first choice for investment advice – especially among the emerging affluent – the needs of Australia’s growing cohort of high-net-worth investors are evolving, as more seek validation of their own investment ideas rather than holistic advice, platform provider Praemium says.

Disruptor wealth platforms like HUB24, Netwealth and Praemium have been taking market share from the mostly bank-aligned platforms for years. While waning investor sentiment has hurt inflows recently, analysts say these platforms are still well positioned in the shift away from incumbents.

Platform provider Praemium hosted their latest Key Market Drivers for 2022, focusing on inflation, interest rates, how to position a portfolio in these market conditions and what to tell your clients for your upcoming end-of-year client meetings.

Inflation fears are ripping through markets again with experts suggesting a correction may already be underway after the US Fed prepares to end the easy money era of the pandemic. US Federal Reserve member James Bullard spooked markets with his hawkish tightening monetary policy comments. He sees the ‘first interest rate rise as soon as…