News & Insights

As the largest generational wealth transfer in history unfolds, philanthropy is moving from the margins to the mainstream. With more HNW individuals choosing purpose-driven giving, advisers have a unique opportunity to guide clients through meaningful, strategic legacy planning.

Australia’s financial advice sector is undergoing a strategic transformation. With adviser numbers halved since the 2019 Royal Commission and demand surging amid mass retirement and wealth transfer, managed accounts are emerging as a key solution.

How a leading wealth management firm streamlined operations and enhanced client engagement

If you’re still weighing the managed accounts question, you’re not alone. Many advisers hesitate, torn between efficiency and control. But while some hold back, others are finding ways to have both. The real question is: can you?

AT1 hybrids — long favoured by private wealth clients for their consistent, franked income — have played a central role in income-focused portfolios, particularly in a low-yield environment. With approximately $44 billion currently on issue, the phase-out signals a significant shift in how banks fund their regulatory capital and how investors may need to rethink their income allocation.

Alternative investments are increasingly viewed by HNW clients as a core part of their portfolio strategy. Yet recent research reveals a disconnect between what many investors are pursuing and what they’re being offered.

By the end of this year, an estimated $3.5 trillion in assets will change hands between generations. This transition, involving substantial transfers of residential property, superannuation funds, and other investments from the Silent Generation and Baby Boomers to younger generations, presents a unique opportunity for financial advisers.

High-net-worth (HNW) clients increasingly seek investment solutions that reflect their unique preferences, financial goals, and desire for direct access to a broader range of assets. As competition for HNW clients intensifies, advisers who provide truly personalised investment strategies, incorporating both custodial and non-custodial assets, have a distinct advantage. Expanding portfolio options to include exclusive investment opportunities not only strengthens client relationships but also enhances an adviser’s ability to attract and retain affluent investors.

It is no secret Australia is in the midst of a strategic shift in wealth distribution, with the $3.5 trillion intergenerational wealth transfer presenting both significant opportunities and pressing needs for financial advisers. To help facilitate the transfer, retain assets, and capture more of the immense opportunity, advisers need to remain relevant and effective and have a clear strategy to deal with the wealth transfer.

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