BT Panorama expands investment menu with new private markets SMA

BT has launched Drummond Private Markets Separately Managed Account (SMA), the first managed account on BT Panorama dedicated to private markets and giving high-net-worth (HNW) investors access to private equity, private debt, and real assets.

The new SMA gives sophisticated investors access to private markets, which are usually reserved for ultra-HNW investors with a minimum investment threshold in the range of $5 million to $10 million, however, the Drummond SMA only has a minimum investment of $100,000.

BT said the lower threshold allows more investors to access private markets, providing new opportunities to diversify their portfolios.

Tom Schubert, managing partner of Drummond Capital Partners, said the new offering makes it easier for clients and advisers to invest in the private markets sector.

“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,” Schubert said.

“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.

“We have chosen to launch this first on BT Panorama because of the mix of investors on the platform – which includes a sizeable high-net-worth segment – and the BT team’s managed account capabilities.”

According to BT, there has been growing interest in private markets as a result of the increasing number of HNW Australians and information about the sector spreading rapidly due to opportunities arising from technological disruptions and emerging markets.

The firm said the rise in companies delisting from the Australian Stock Exchange (ASX) is also driving increased interest, with the ASX Group Monthly Activity Report, February 2024 revealing that there were 110 delistings from July 2023 to February 2024, compared with 75 in the previous corresponding period.

The SMA, developed in collaboration with Ironbark Asset Management, also provides investors with increased liquidity. Where some private market funds require a long-term commitment, with funds inaccessible for around 10 years, Drummond’s SMA allows investors to access redemptions daily, monthly or quarterly, depending on the asset.

BT’s head of managed accounts, Zac Leman, said the SMA provides new opportunities to diversify investment portfolios.

“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,” Leman said.

“Drummond’s new product caters to that client demand, while also giving advisers the benefits that come from utilising a managed account structure.”

Ironbark Investment Solutions chief executive Alex Donald added: “We are delighted to have been chosen by Drummond as the responsible entity for this new managed portfolio solution. We look forward to collaborating closely with Drummond and BT now, and in the future, on this expanding asset class,” Donald said.