Denis Orrock
Australia’s high-net-worth (HNW) investors are optimistic about markets but keeping significant cash in reserve, as economic and policy uncertainty tempers their appetite to put capital fully to work.
Praemium and CoreData’s Rich Decisions research found 81% of HNW investors expect investment markets to perform well over the next 12 months. Yet 53% hold cash, making it the third most commonly held asset class behind Australian equities (57%) and residential property (54%). Among those holding cash, it accounts for an average 20% of their portfolio.
Caution keeps cash in reserve
The 2026–27 Federal Budget has added to the uncertainty, with 32% of investors saying they had increased, or planned to increase, their cash holdings as a result. Interest rate changes remain the leading portfolio concern (48%), followed closely by inflation (45%) and the risk of a global economic slowdown (44%). Financial policy and tax changes are also weighing on investors (42%).
Yet the cash allocation doesn’t suggest investors have stopped making decisions. Almost two-thirds (64%) changed their portfolio allocation over the past 12 months. While 18% moved to a more defensive position and 8% became more aggressive, 37% did both, reducing risk in some parts of their portfolios while taking up opportunities elsewhere.
Where investors see opportunity
Technology may be one destination for that capital. AI and technology topped the list of opportunities, nominated by 46% of investors, ahead of interest rate cuts (39%). Domestic and international equities were each identified by 36%, while 31% saw opportunity in private markets and alternatives.
“Cash isn’t necessarily a vote against growth,” said Denis Orrock, Acting CEO at Praemium. “HNW investors can see opportunities in technology, equities and private markets, but they’re also navigating interest rates, inflation and policy uncertainty. Cash gives them the flexibility to act when the right opportunity emerges.”
Uncertainty driving demand for advice
For advisers, the opportunity lies in helping clients determine when to deploy that capital and where. Alternatives illustrate the challenge: while 26% of HNW investors already hold alternative investments, another 22% want access, or greater access, but find it difficult to obtain.
That uncertainty is also driving demand for advice. Since the Budget, 29% of investors have sought, or plan to seek, additional professional advice, while 28% of advised investors want more support accessing alternative investments.
“The question isn’t simply whether investors are holding too much cash, but what would give them confidence to deploy it,” Orrock said. “For advisers, that creates a broader portfolio conversation around liquidity, diversification and how new opportunities fit alongside existing holdings.”