A new report by UBS analysts Jonathan Mott and Chris Williams concluded that the high amount invested by -Australians in banks, shares, bonds and other...

Tom McKay

A new report by UBS analysts Jonathan Mott and Chris Williams concluded that the high amount invested by -Australians in banks, shares, bonds and other securities should be regarded as -concentration risk. We believe that the concentration risk to bank securities is more significant in Australia than other areas of the developed markets. While these statistics are an -indication of the success of the banking sector over the last decade, it also highlights significant wealth concentration for many Australian households. Is it appropriate that 21 per cent of their net worth outside housing and deposits is invested in four highly correlated banks? Will this become an increasing concern for fund trustees and financial planners? Further, given the Australian banks are highly leveraged to the property market, on a look-through basis this further increases the concentration of household net worth to residential and commercial property.


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Tom McKay

Tom McKay

Managing Director and Co-Founder, Livewire

I'm the Managing Director and Co-Founder of Livewire. I'm passionate about collecting and curating the markets most informed insights every day so that our members can discover new investment ideas. If you would like to get in touch - please use...

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