This marked the first decline in the level of HNW assets invested in cash and term deposits since 2009, according to the Investment Trends 2013 High Net Worth Investor Report.
The report found that HNW investors increased the proportion of their 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.
Investment Trends senior analyst Uwe Helmes said HNW investors tend to reflect what the broader investor population will do.
“While the general population continued to accumulate cash reserves in 2013, according to RBA figures, HNW investors were ahead of the curve with a quarter of them already in the process of re-investing their excess cash,” said Mr Helmes.
ETFs and hybrid securities also experienced increased usage by HNW investors.
The number of HNW investors using hybrid securities rose from nine per cent to 23 per cent in 2013 while the proportion of HNW investors using ETFs increased from five per cent in 2009 to 13 per cent in 2013.
In terms of regions, HNW investors are showing strong interest in North America, with eight per cent intending to invest there in the next 12 months.
Mr Helmes said half of all HNW investors now hold some form of international investment, up from 40 per cent in 2009.
The proportion of total HNW assets invested in overseas markets is still, however, only six per cent on average, said Mr Helmes, which demonstrates a strong domestic bias.
