August 27, 2025 • 17 mins
Goldman Sachs is bolstering its private wealth business in Australia as it tries to win the business of individuals and families with more than A$100 million to invest.
This week on the Bloomberg Australia Podcast, host Rebecca Jones speaks to finance editor Adam Haigh about what this tells us about the local wealth management market, and how people with slightly less (i.e. most of us) can do to boost their coffers.
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Episode Transcript
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Speaker 1 (00:01):
We am the fortune. We're working with ultra high net
worth individuals.
Speaker 2 (00:06):
We are focused on kind of the core high net
worth market.
Speaker 1 (00:09):
Wealth management is trying to help someone with their entire life,
both their assets and their liabilities. They're planning, they're gifting
the legacy that they want to leave for their families.
Speaker 2 (00:22):
If you had one hundred million bucks, what would you
do with it? Well, Wall Street banks are betting more
wealthy Australians are asking that exact question and they want
to be the ones with the answers. Hello, I'm Rebecca Jones,
and welcome to the Bloomberg Australia Podcast. In last week's episode,
we looked at the fortunes of Australia's richest billionaires, and
(00:45):
this week we're taking things down a notch and asking
why are US investment banks offering more and more wealth
advice services to Australia's millionaires to help get a glimpse
into this rarefied world where clients sometimes you know they've
got so much money that literally don't know what to
do with it. I'm joined today by Sydney based finance
editor Adam Haig. Adam, welcome back to the pod.
Speaker 3 (01:08):
Thanks very much, it's great to be here.
Speaker 2 (01:10):
First of all, what exactly is this wealth advice these
big US firms are offering Australians. How much money do
you need to have in the bank? Do we even
get a look in here?
Speaker 3 (01:20):
Well, in short, you need a lot. So really wealth
advice can be everything from say, you know, a few
hundred thousand dollars to all the way up to many
many tens of millions. But I think really when we're
talking about wealth advice with you know, the big firms
and the biggest firms that are involved in this, this
really is many many tens of millions of dollars. So
(01:42):
these are clearly people with that have either created their
own businesses and grown huge wealth through that, or they're
you know, the next generation in a family, a wealthy family.
Sometimes we call them family officers, that are professional organizations
that are running a big wealthy families money. You know
that this could mean anything upwards of fifty million dollars
(02:05):
to many hundreds of millions of dollars. So clearly this
is you know, real wealth advice that pays very well
for the companies that are involved in doing it, that
can take the fees from it. You know, the more
you've got from that rich family to invest, the more
potentially you can make off the fees that you generate
(02:25):
for your business as the advisor.
Speaker 2 (02:27):
Right, So that rules me and dare I say it
most Australian journalists out of that then. But moving on, Adam,
you've recently spoken to some wealth executives from Goldman Sachs,
which I guess you could say they're like the Rolls
Royce of investment banks. What did Goldman tell you about
how they're building their wealth business here?
Speaker 3 (02:46):
Yes, so Goldman Sacks are just one of many players
in this market. They are specifically targeting very, very wealthy people.
So this is Goldman Sachs private wealth business and the
guys we spoke to are really interested in just a
few hundred people that have basically more than one hundred
million Australian dollars to invest. So they're incredibly wealthy, you know,
(03:12):
multimillionaires that have either made money through family businesses or
a part of a wealthy family. And really what these
guys at Goldman Sachs are trying to do is find
places to put that money to invest that money on
behalf of these people that these people can't typically find themselves,
so they're already quite sophisticated in the fact that you know,
(03:34):
they are often a little bit like an institutional money
manager would be, so a professional. Think of it like
real professionals investing your money. So they're not really looking
to buy shares of Macquarie or shares of a certain company.
You know. What they're really looking for is to give
these very very wealthy clients access to quite specific investments
(03:54):
that you wouldn't ordinarily be able to get. So access
to public markets, definitely equities and bonds and whatnot, but
quite often, and I think increasingly at the moment, private markets.
So access to a deal that's happening in the private
markets that you just can't get access to unless you're
a Goldman Sax of the world and you have this
huge global profile. Investment bankers, people at work in the
(04:18):
asset management business of Goldman Sacks, people at work really
across this giant US bank that's across the world, and
they can get you meetings with people who run big companies.
They can get you meetings with people who are buying
and selling stakes in big companies so that you can
get access to those deals. So it's really about the
top level treatment of really ultimately the richest people in
(04:43):
Australia here. And the key thing for Goldman Sacks is
that what they want to set themselves apart is they
don't want you to necessarily have to just restrict yourself
to Australia. They want to give you that global lens.
They want to give you that global avenue to invest
some of your dollars abroad as well.
Speaker 2 (04:59):
And as you say, it sounds like it is really
a question of the axis that these big investment managers
can provide. You did say, though, Adam, that it's only
a couple one hundred Australians that we're talking about, right,
that have this kind of mega wealth. Why is Australian
now so attractive to these big US players? What is
really behind this recent push into our market?
Speaker 3 (05:23):
Well, I think in many ways, Beck, it has been
a years long project for a firm like Goldman Sachs.
So they've expanded in the APAC region over the last
few years and really the boots on the ground in
Sydney Melbourne have been the only notable places where they've expanded.
So they've got about thirteen people on the ground here,
eight of those are advisors and what they're really seeing
(05:45):
and what they told us is this big increase in
family wealth. So that's a year's long story. I mean,
if you think of the the canvas of this world,
the Atlasians, a lot of those tech founders that have
made them money in Australia over many many years have
built up, you know, such huge wealth piles that they
(06:06):
kind of now need new avenues to try and find
places to put that money. So it's it's a point
in time where where they're clearly wanting to expand their
business in Australia. But I think you have to see
this really over the long term and also the long
term in the way that these relationships are built. You
can think about, you know, someone who has more than
(06:28):
one hundred million dollars to invest. You don't just get
them on your side by taking them out to dinner
once or twice. You know, these are relationships that are
built over many months and many years. And indeed, to
build a new customer into your framework, you know, it's
not something that happens very quickly. So I think you
have to be very long term and Goldman Sacks are
clearly thinking that way in terms of how you not
(06:50):
just get new clients, but also how you kind of
keep clients and retain clients over the long term, because
as their wealth grows and maybe they need to pass
their money onto to children or someone else in the family,
you also need to know those people in the family
as well to understand what's going to happen to that
wealth as it gets passed on later in life.
Speaker 2 (07:10):
And Adam, of course it's not just Goldman sex. It's
doing this right through the course of your reporting. I
know you speak to other investment managers as well. Who
else is circling el market and trying to win over
these these big wealthy families.
Speaker 3 (07:25):
Well, there's no shortage of firms who are looking to
increase their share of the pie. And you know, it's
an increasingly lucrative market in many respects, but also because
it's so competitive, it is a hard business to operate in. Right.
This is all about getting fees. If I manage fifty
million for you, or if I manage five hundred million
(07:46):
for you, there's a fee associated with that, and it's
a pure percentage. Of course, the higher that number that
the beatdy you do as a wealth manager. But it's
a super competitive place. There's the Goldmans and Morgan Stanleys
of this world, you know, big US firms that have
a global footprint. Then there are also lots of local
firms as well, big wealth management firms like Share and Partners,
(08:08):
LGT Crestone that also serve a domestic client base as
well as people wanting to invest abroad as well. So
it's an incredibly competitive landscape. And Goldman, you know, one
very important message from them was they don't necessarily expect
to be the only bank or the only wealth manager
playing in this to a customer. They very much see
(08:29):
customers having multiple banks that they use to manage this money.
So they're just one element of this. So it's a
very very competitive landscape.
Speaker 2 (08:39):
So that sounds like the super richer very well taken
care of. But when we come back, perhaps something slightly
more relatable, at least to you and I, Adam, what
about the people who've got less than that, maybe not
super money, a bit a bit in the bank. Let's
talk about them. This is the Bloomberg Australia Podcast, And
(09:02):
welcome back to the Bloomberg Australia Podcast. I'm Rebecca Jones
and this week I'm talking to Finance editor Adam Haig
about the surge in wealth advice services aimed at Australia's richest.
Adam so, as we discussed, Goldman is targeting families with
at least one hundred million bucks and that is a
pretty elite club. But what about those ossis who might have,
(09:24):
say just a few billion dollars in assets? What is
on offer for those people? Because I can imagine it's
a much bigger pool.
Speaker 3 (09:31):
Yes, And I think really however, whatever money you have
to manage, there will always be someone who will be
prepared to take a fee and do some work for
you and find you some nice investments. So in a sense,
even for someone with a few hundred thousand dollars, there
is still a wealth management firm out there that will help.
But it doesn't really make sense and the economics aren't
(09:54):
really there until you kind of get over that that
at least one or two or three million dollar market
in Australia. And so typically what most of the wealth
management firms do here is that they kind of target
that level up to around you know, five million dollars
something like that. Then you have another threshold at about
ten million dollars and then obviously up into the stratosphere
(10:15):
that Goldman's operating in, where you get into the one
hundred plus million dollars. But each level of those that
asset base, depending on what you have, it depends on
what you can get access to. So if you've got
a little bit less money, you might not necessarily get
access to the best deals in the world, not as
much of the lucrative stuff, but there's still plenty for
(10:35):
you to invest in. So I think wealth management, really,
whichever bracket you're looking at, is still about offering people
something they can't get to themselves, so normally gets them
into a framework where they can get access to different markets,
either different geographies or different types of companies, be that
private or public. That really just gives you a breadth
(10:58):
and diversity in what you want to So a lot
of wealthy people who go to wealth management firms are
all often quite sophisticated finance investors. They already have a
super fund, they already have maybe a self managed super fund,
they got plenty of them, or own money already in
say property and equities, but they don't have much in say,
for example, private equity or private credit, and some of
(11:20):
these other areas that are a bit harder to get to.
So sometimes that's a good differentiator for a wealth management
firm to say, come on, we can get you access
to some of these kind of investments.
Speaker 2 (11:30):
That's really interesting. I mean you mentioned the figure five
million dollars or like a couple of million. If banks
are chasing people with a couple of million, and believe me,
dear listener, I said that with their quotes, where does
that leave the average Australian? Are you the person with
less than that with as you say, a couple one
hundred thousand, is there anything out there for them?
Speaker 1 (11:51):
Yeah?
Speaker 3 (11:52):
And that's the thing, you know, for kind of everyday
Australians really that are doing their best to kind of
keep their super fun top up or maybe invest in
a property or some kind of you know, second home
that they might have as an investment. You know, there
isn't a huge amount of things that they can get
access to by virtue of the fact that they're considered
(12:12):
relatively small in inverted commas. I think that's really what
you see as you go up the league table in
terms of assets, is it just gives you the access
to all sorts of different types of investments. But having
said that, you know, the average investor with a small
amount of money in Australia can still set up a
self managed super fun They can also look at individual
private investments. There's still a lot they can do, but
(12:33):
it's a lot harder to do it. And one of
the things when you're doing it yourself, if you're not
paying someone else to do it, is you have to
do a lot of that administration and the tax and
all those things yourself. And of course that's a headache
that's too big for a lot of people to even
contemplate exactly.
Speaker 2 (12:48):
And I think you made a good point earlier when
you said a lot of these the mega rich, the
people with one hundred million bucks, they've got a healthy
level of financial literacy already, like going into these meetings
with these professional bankers from Goldman and the like. Looking ahead, though, Adam,
you know we talked a little bit just now about
superinnuation and the system here and as that matures and
(13:10):
more working Australians have their entire career captured by our
compulsory retirement saving system, do you think that Australia's wealth
boom is going to be enough to keep on attracting
these these bigger players like the Goldman Sachs or is
there a limit to how much this market can absorb
(13:30):
and it's still to be as attractive for the players
like Goldman. Will they ever sort of come down a
couple of notches and maybe more a little bit for
the common man.
Speaker 3 (13:39):
Well, I think at the moment there's enough in the
growth of the wealth market for them to still be
very happy with just targeting that very upper a hundred.
So yes, it's enough of those wealthy families that are
continuing to become even more wealthy. And I think you'll
see ebbs and flows in the economic cyclists we've seen
over the last kind of twenty years. You know, the
(13:59):
sense that technology has become a huge breeding ground for
a lot of this wealth mining to a certain degree
as well of course, and property. You know, a lot
of that those kind of industries are still spitting out
people that are very, very wealthy and continue to become
even more wealthy. So I think there still is a
huge amount of growth in that market at the top end.
(14:21):
And then also if you come down a couple of rungs,
you know, there's still a lot of people in that
you know more kind of let's say, you know, five
million to ten million bracket right that are continuing to
look for other avenues investments outside of Australia to keep
their portfolios diversified and interesting and making sure that they're
on to the next trend before it becomes kind of
(14:42):
the same investment that everyone else is invested in. So
I think there is still a lot to run in
Australia's wealth boom. But let's see what happens to the
economy here, and let's see what happens in the next
wave of the broader economic cycle. Because of course, artificial
intelligence is you know, bringing in a lot of new
wealth and youone listened to a podcast last week will
(15:04):
have heard about how that's maybe a breeding ground for
the next generation of billionaires in Australia as well. So yeah,
I think there's still a ways to go in this
boom in Australia's wealth.
Speaker 2 (15:15):
A breeding ground for more billionaires and also more podcast episodes.
I suspect, Adam, finally, how does our wealth management industry
at this top end of town compare with the other
regional hubs, Adam, Like you know, those in Singapore or
Hong Kong, is Australia catching up or are we just
playing in a differently So.
Speaker 3 (15:36):
At the moment, Australia on absolute terms is still small
relative to those big hubs you mentioned, you know, Singapore's
and Hong Kong's of this world. But the growth rate,
and that this is what's crucial for businesses that want
to be involved, is that that growth rate is actually
very very fast as an international comparison to somewhere like
(15:57):
even North America, which is one of the biggest wealthnagement
industries in the world. The growth rate on some estimates
by the end of this decade has an actually faster
looking growth trajectory in Australia than it does in a
massive market like the US. So if you're trying to
benefit from that clip of fees of managing money in
(16:17):
this market, then you're still doing very well. So we're
coming from an absolute level, it's a lot lower, it's
a smaller starting point, but the growth rates looking pretty healthy.
Speaker 2 (16:27):
Watch this space. Hey Adam, thank you for the chat.
If you found today's conversation insightful, be sure to follow
the Bloomberg Australia podcast wherever you listen and check for
more on the games losses and power plays shaping the
fortunes of Australia's richest, including the latest reporting from Adam
Hague on Bloomberg dot Com. Today's episode was recorded on
(16:48):
the traditional lands of the Undery and Gadigal people. It
was produced by Paul Allen and edited by Ainsley Chandler
and Chris Burke. I'm Rebecca Jones and I'll see you
next week.
We am the fortune. We're working with ultra high net
worth individuals.
Speaker 2 (00:06):
We are focused on kind of the core high net
worth market.
Speaker 1 (00:09):
Wealth management is trying to help someone with their entire life,
both their assets and their liabilities. They're planning, they're gifting
the legacy that they want to leave for their families.
Speaker 2 (00:22):
If you had one hundred million bucks, what would you
do with it? Well, Wall Street banks are betting more
wealthy Australians are asking that exact question and they want
to be the ones with the answers. Hello, I'm Rebecca Jones,
and welcome to the Bloomberg Australia Podcast. In last week's episode,
we looked at the fortunes of Australia's richest billionaires, and
(00:45):
this week we're taking things down a notch and asking
why are US investment banks offering more and more wealth
advice services to Australia's millionaires to help get a glimpse
into this rarefied world where clients sometimes you know they've
got so much money that literally don't know what to
do with it. I'm joined today by Sydney based finance
editor Adam Haig. Adam, welcome back to the pod.
Speaker 3 (01:08):
Thanks very much, it's great to be here.
Speaker 2 (01:10):
First of all, what exactly is this wealth advice these
big US firms are offering Australians. How much money do
you need to have in the bank? Do we even
get a look in here?
Speaker 3 (01:20):
Well, in short, you need a lot. So really wealth
advice can be everything from say, you know, a few
hundred thousand dollars to all the way up to many
many tens of millions. But I think really when we're
talking about wealth advice with you know, the big firms
and the biggest firms that are involved in this, this
really is many many tens of millions of dollars. So
(01:42):
these are clearly people with that have either created their
own businesses and grown huge wealth through that, or they're
you know, the next generation in a family, a wealthy family.
Sometimes we call them family officers, that are professional organizations
that are running a big wealthy families money. You know
that this could mean anything upwards of fifty million dollars
(02:05):
to many hundreds of millions of dollars. So clearly this
is you know, real wealth advice that pays very well
for the companies that are involved in doing it, that
can take the fees from it. You know, the more
you've got from that rich family to invest, the more
potentially you can make off the fees that you generate
(02:25):
for your business as the advisor.
Speaker 2 (02:27):
Right, So that rules me and dare I say it
most Australian journalists out of that then. But moving on, Adam,
you've recently spoken to some wealth executives from Goldman Sachs,
which I guess you could say they're like the Rolls
Royce of investment banks. What did Goldman tell you about
how they're building their wealth business here?
Speaker 3 (02:46):
Yes, so Goldman Sacks are just one of many players
in this market. They are specifically targeting very, very wealthy people.
So this is Goldman Sachs private wealth business and the
guys we spoke to are really interested in just a
few hundred people that have basically more than one hundred
million Australian dollars to invest. So they're incredibly wealthy, you know,
(03:12):
multimillionaires that have either made money through family businesses or
a part of a wealthy family. And really what these
guys at Goldman Sachs are trying to do is find
places to put that money to invest that money on
behalf of these people that these people can't typically find themselves,
so they're already quite sophisticated in the fact that you know,
(03:34):
they are often a little bit like an institutional money
manager would be, so a professional. Think of it like
real professionals investing your money. So they're not really looking
to buy shares of Macquarie or shares of a certain company.
You know. What they're really looking for is to give
these very very wealthy clients access to quite specific investments
(03:54):
that you wouldn't ordinarily be able to get. So access
to public markets, definitely equities and bonds and whatnot, but
quite often, and I think increasingly at the moment, private markets.
So access to a deal that's happening in the private
markets that you just can't get access to unless you're
a Goldman Sax of the world and you have this
huge global profile. Investment bankers, people at work in the
(04:18):
asset management business of Goldman Sacks, people at work really
across this giant US bank that's across the world, and
they can get you meetings with people who run big companies.
They can get you meetings with people who are buying
and selling stakes in big companies so that you can
get access to those deals. So it's really about the
top level treatment of really ultimately the richest people in
(04:43):
Australia here. And the key thing for Goldman Sacks is
that what they want to set themselves apart is they
don't want you to necessarily have to just restrict yourself
to Australia. They want to give you that global lens.
They want to give you that global avenue to invest
some of your dollars abroad as well.
Speaker 2 (04:59):
And as you say, it sounds like it is really
a question of the axis that these big investment managers
can provide. You did say, though, Adam, that it's only
a couple one hundred Australians that we're talking about, right,
that have this kind of mega wealth. Why is Australian
now so attractive to these big US players? What is
really behind this recent push into our market?
Speaker 3 (05:23):
Well, I think in many ways, Beck, it has been
a years long project for a firm like Goldman Sachs.
So they've expanded in the APAC region over the last
few years and really the boots on the ground in
Sydney Melbourne have been the only notable places where they've expanded.
So they've got about thirteen people on the ground here,
eight of those are advisors and what they're really seeing
(05:45):
and what they told us is this big increase in
family wealth. So that's a year's long story. I mean,
if you think of the the canvas of this world,
the Atlasians, a lot of those tech founders that have
made them money in Australia over many many years have
built up, you know, such huge wealth piles that they
(06:06):
kind of now need new avenues to try and find
places to put that money. So it's it's a point
in time where where they're clearly wanting to expand their
business in Australia. But I think you have to see
this really over the long term and also the long
term in the way that these relationships are built. You
can think about, you know, someone who has more than
(06:28):
one hundred million dollars to invest. You don't just get
them on your side by taking them out to dinner
once or twice. You know, these are relationships that are
built over many months and many years. And indeed, to
build a new customer into your framework, you know, it's
not something that happens very quickly. So I think you
have to be very long term and Goldman Sacks are
clearly thinking that way in terms of how you not
(06:50):
just get new clients, but also how you kind of
keep clients and retain clients over the long term, because
as their wealth grows and maybe they need to pass
their money onto to children or someone else in the family,
you also need to know those people in the family
as well to understand what's going to happen to that
wealth as it gets passed on later in life.
Speaker 2 (07:10):
And Adam, of course it's not just Goldman sex. It's
doing this right through the course of your reporting. I
know you speak to other investment managers as well. Who
else is circling el market and trying to win over
these these big wealthy families.
Speaker 3 (07:25):
Well, there's no shortage of firms who are looking to
increase their share of the pie. And you know, it's
an increasingly lucrative market in many respects, but also because
it's so competitive, it is a hard business to operate in. Right.
This is all about getting fees. If I manage fifty
million for you, or if I manage five hundred million
(07:46):
for you, there's a fee associated with that, and it's
a pure percentage. Of course, the higher that number that
the beatdy you do as a wealth manager. But it's
a super competitive place. There's the Goldmans and Morgan Stanleys
of this world, you know, big US firms that have
a global footprint. Then there are also lots of local
firms as well, big wealth management firms like Share and Partners,
(08:08):
LGT Crestone that also serve a domestic client base as
well as people wanting to invest abroad as well. So
it's an incredibly competitive landscape. And Goldman, you know, one
very important message from them was they don't necessarily expect
to be the only bank or the only wealth manager
playing in this to a customer. They very much see
(08:29):
customers having multiple banks that they use to manage this money.
So they're just one element of this. So it's a
very very competitive landscape.
Speaker 2 (08:39):
So that sounds like the super richer very well taken
care of. But when we come back, perhaps something slightly
more relatable, at least to you and I, Adam, what
about the people who've got less than that, maybe not
super money, a bit a bit in the bank. Let's
talk about them. This is the Bloomberg Australia Podcast, And
(09:02):
welcome back to the Bloomberg Australia Podcast. I'm Rebecca Jones
and this week I'm talking to Finance editor Adam Haig
about the surge in wealth advice services aimed at Australia's richest.
Adam so, as we discussed, Goldman is targeting families with
at least one hundred million bucks and that is a
pretty elite club. But what about those ossis who might have,
(09:24):
say just a few billion dollars in assets? What is
on offer for those people? Because I can imagine it's
a much bigger pool.
Speaker 3 (09:31):
Yes, And I think really however, whatever money you have
to manage, there will always be someone who will be
prepared to take a fee and do some work for
you and find you some nice investments. So in a sense,
even for someone with a few hundred thousand dollars, there
is still a wealth management firm out there that will help.
But it doesn't really make sense and the economics aren't
(09:54):
really there until you kind of get over that that
at least one or two or three million dollar market
in Australia. And so typically what most of the wealth
management firms do here is that they kind of target
that level up to around you know, five million dollars
something like that. Then you have another threshold at about
ten million dollars and then obviously up into the stratosphere
(10:15):
that Goldman's operating in, where you get into the one
hundred plus million dollars. But each level of those that
asset base, depending on what you have, it depends on
what you can get access to. So if you've got
a little bit less money, you might not necessarily get
access to the best deals in the world, not as
much of the lucrative stuff, but there's still plenty for
(10:35):
you to invest in. So I think wealth management, really,
whichever bracket you're looking at, is still about offering people
something they can't get to themselves, so normally gets them
into a framework where they can get access to different markets,
either different geographies or different types of companies, be that
private or public. That really just gives you a breadth
(10:58):
and diversity in what you want to So a lot
of wealthy people who go to wealth management firms are
all often quite sophisticated finance investors. They already have a
super fund, they already have maybe a self managed super fund,
they got plenty of them, or own money already in
say property and equities, but they don't have much in say,
for example, private equity or private credit, and some of
(11:20):
these other areas that are a bit harder to get to.
So sometimes that's a good differentiator for a wealth management
firm to say, come on, we can get you access
to some of these kind of investments.
Speaker 2 (11:30):
That's really interesting. I mean you mentioned the figure five
million dollars or like a couple of million. If banks
are chasing people with a couple of million, and believe me,
dear listener, I said that with their quotes, where does
that leave the average Australian? Are you the person with
less than that with as you say, a couple one
hundred thousand, is there anything out there for them?
Speaker 1 (11:51):
Yeah?
Speaker 3 (11:52):
And that's the thing, you know, for kind of everyday
Australians really that are doing their best to kind of
keep their super fun top up or maybe invest in
a property or some kind of you know, second home
that they might have as an investment. You know, there
isn't a huge amount of things that they can get
access to by virtue of the fact that they're considered
(12:12):
relatively small in inverted commas. I think that's really what
you see as you go up the league table in
terms of assets, is it just gives you the access
to all sorts of different types of investments. But having
said that, you know, the average investor with a small
amount of money in Australia can still set up a
self managed super fun They can also look at individual
private investments. There's still a lot they can do, but
(12:33):
it's a lot harder to do it. And one of
the things when you're doing it yourself, if you're not
paying someone else to do it, is you have to
do a lot of that administration and the tax and
all those things yourself. And of course that's a headache
that's too big for a lot of people to even
contemplate exactly.
Speaker 2 (12:48):
And I think you made a good point earlier when
you said a lot of these the mega rich, the
people with one hundred million bucks, they've got a healthy
level of financial literacy already, like going into these meetings
with these professional bankers from Goldman and the like. Looking ahead, though, Adam,
you know we talked a little bit just now about
superinnuation and the system here and as that matures and
(13:10):
more working Australians have their entire career captured by our
compulsory retirement saving system, do you think that Australia's wealth
boom is going to be enough to keep on attracting
these these bigger players like the Goldman Sachs or is
there a limit to how much this market can absorb
(13:30):
and it's still to be as attractive for the players
like Goldman. Will they ever sort of come down a
couple of notches and maybe more a little bit for
the common man.
Speaker 3 (13:39):
Well, I think at the moment there's enough in the
growth of the wealth market for them to still be
very happy with just targeting that very upper a hundred.
So yes, it's enough of those wealthy families that are
continuing to become even more wealthy. And I think you'll
see ebbs and flows in the economic cyclists we've seen
over the last kind of twenty years. You know, the
(13:59):
sense that technology has become a huge breeding ground for
a lot of this wealth mining to a certain degree
as well of course, and property. You know, a lot
of that those kind of industries are still spitting out
people that are very, very wealthy and continue to become
even more wealthy. So I think there still is a
huge amount of growth in that market at the top end.
(14:21):
And then also if you come down a couple of rungs,
you know, there's still a lot of people in that
you know more kind of let's say, you know, five
million to ten million bracket right that are continuing to
look for other avenues investments outside of Australia to keep
their portfolios diversified and interesting and making sure that they're
on to the next trend before it becomes kind of
(14:42):
the same investment that everyone else is invested in. So
I think there is still a lot to run in
Australia's wealth boom. But let's see what happens to the
economy here, and let's see what happens in the next
wave of the broader economic cycle. Because of course, artificial
intelligence is you know, bringing in a lot of new
wealth and youone listened to a podcast last week will
(15:04):
have heard about how that's maybe a breeding ground for
the next generation of billionaires in Australia as well. So yeah,
I think there's still a ways to go in this
boom in Australia's wealth.
Speaker 2 (15:15):
A breeding ground for more billionaires and also more podcast episodes.
I suspect, Adam, finally, how does our wealth management industry
at this top end of town compare with the other
regional hubs, Adam, Like you know, those in Singapore or
Hong Kong, is Australia catching up or are we just
playing in a differently So.
Speaker 3 (15:36):
At the moment, Australia on absolute terms is still small
relative to those big hubs you mentioned, you know, Singapore's
and Hong Kong's of this world. But the growth rate,
and that this is what's crucial for businesses that want
to be involved, is that that growth rate is actually
very very fast as an international comparison to somewhere like
(15:57):
even North America, which is one of the biggest wealthnagement
industries in the world. The growth rate on some estimates
by the end of this decade has an actually faster
looking growth trajectory in Australia than it does in a
massive market like the US. So if you're trying to
benefit from that clip of fees of managing money in
(16:17):
this market, then you're still doing very well. So we're
coming from an absolute level, it's a lot lower, it's
a smaller starting point, but the growth rates looking pretty healthy.
Speaker 2 (16:27):
Watch this space. Hey Adam, thank you for the chat.
If you found today's conversation insightful, be sure to follow
the Bloomberg Australia podcast wherever you listen and check for
more on the games losses and power plays shaping the
fortunes of Australia's richest, including the latest reporting from Adam
Hague on Bloomberg dot Com. Today's episode was recorded on
(16:48):
the traditional lands of the Undery and Gadigal people. It
was produced by Paul Allen and edited by Ainsley Chandler
and Chris Burke. I'm Rebecca Jones and I'll see you
next week.
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