BT is offering its first private markets managed account on the BT Panorama platform as interest in alternatives grow among high-net-worth investors.
The Drummond Private Markets Separately Managed Account (SMA) is the first on the platform dedicated to private markets.
This gives high-net-worth (HNW) clients easier access to a mix of private equity, private debt and real assets.
The minimum investment in the Drummond managed account is $100,000, making the product accessible to clients who are classified as sophisticated investors. This is far lower than the typical minimum investment threshold which can sit at $5–10 million.
Drummond selects and manages a portfolio of private markets managers with a focus on liquidity management. The portfolio provides access to funds with the majority allowing monthly redemptions; some have daily or quarterly redemptions. In comparison, some private markets funds typically require a long-term commitment, with investors’ funds “locked up” or inaccessible for around 10 years.
It was developed in association with Ironbark Asset Management.
Zac Leman, head of managed accounts at BT, said: “Many high-net-worth clients are interested in gaining exposure to private markets, to add to their existing portfolios which are predominantly invested in traditional asset classes. Drummond’s new product caters to that client demand, while also giving advisers the benefits that come from utilising a managed account structure.”
Tom Schubert, managing partner of Drummond Capital Partners, said the firm had chosen the BT Panorama platform as the platform has a diverse mix of clients including a large HNW segment.
“Our managed account solution addresses many of the hurdles that advisers and clients tend to face when investing in the private market sector – accessibility, liquidity, complexity and transparency.
“We’re proud to have developed an innovative, differentiated solution that has been the culmination of our investment team’s experience in the managed account sector and strong heritage in the high-net-worth and family office segment.”
BT said the firm is growing investor interest in private markets due to opportunities arising from technological disruption and emerging markets as well as companies who are opting to delist from the ASX. Around 17 per cent of HNW investors are utilising alternative assets, according to CoreData.
BT’s managed accounts offering has over 400 products, with funds under administration sitting at $16 billion excluding adviser and tailored portfolios.
Earlier this year, it appointed Annabelle Kline as its new chief product officer to replace Kathy Vincent who joined Australia Retirement Trust. She will be responsible for leading the firm’s platform business and playing a key role on the BT leadership team.
