Financial Intermediaries

We manage two types of global multi-asset solutions which combine the four pillars of our investment process under the managed account structure. The Drummond Dynamic Portfolio is a goals based solution which has a flexible asset allocation. The Strategic Series are traditional risk based portfolios provided in six clearly defined mandates to cater to different client risk profiles.

What We DoInvestment ProcessDrummond Dynamic PortfolioDrummond Strategic SeriesManaged Accounts

375

data inputs

3.6 million

data points

68

macroeconomic variables forecasted

15

asset class returns forecasted

10,000

portfolio simulations

200+

fund manager meetings a year

100+

years of experience and insight

365

days a year observing

What We Do

We are asset allocation specialists, focused on delivering high quality, risk aware, global multi-asset portfolios driven by our own proprietary research. As active investors, we act according to the portfolio mandate and market opportunity, rather than scheduled review cycles. Markets do not adhere to a calendar, and nor do we.

We seek to form deep partnerships with our clients, becoming an extension of their business and continually seeking to innovate and evolve our service. Our consultative process involves a deep dive into your practice structure, service proposition, and investment philosophy. Through this process we will assist you to develop an investment offering that enhances the service you provide your clients as well as improving investment outcomes. Our alignment and implementation support has seen our advice practice partners successfully convert over 80% of their client base, delivering on the efficiency benefits of managed accounts.

The added benefit of managed accounts is the increased transparency and client engagement it can provide. We deliver on this through extensive real time reporting, connecting real world data to individual portfolio outcomes. Our white label service and marketing strategies help our advice practice clients provide enhanced, proactive communications to elevate their client offering.

Investment Process

Our investment process is separated into four proprietary elements, developed using our combined +80 years of asset management experience in order to provide robust, diversified portfolios for our clients.

In the following section we provide a brief overview of each step within our investment process.

Strategic Asset Allocation

The assets you invest in drive the majority of portfolio returns over the long term. Our strategic asset allocation is developed via an iterative, multi-stage process anchored around two key processes:

Capital market assumptions

Optimisation and simulation

Tactical Asset Allocation

Over shorter time horizons, opportunity exists to improve investor returns through active management by:

Minimising drawdowns

Capturing market upside

Proprietary Manager Research

Manager selection is more nuanced than purely focusing on the best people and process on paper. We believe manager selection is a key area of alpha generation.

1000 funds

200+ manager meetings p.a.

Portfolio Construction

Our quantitative tools construct the optimal asset mix based on the specific risk and return objectives of each portfolio while our qualitative insight overlays this output with the experience of the investment team.

Construction

Implementation

Three research pillars
Intra-asset considerations
Execution and monitoring

Construction

Three research pillars
Intra-asset considerations

Implementation

Execution and monitoring

Dynamic

DDP

Drummond Dynamic Portfolio

The portfolio has a dual objective of generating CPI +4% p.a. over the cycle whilst maintaining a strong focus on downside risk management. To achieve this dual objective, the portfolio has a flexible asset allocation strategy. This enables us to take advantage of opportunities as they arise, participating in the long-term growth of equities when times are good and conversely protecting capital by moving to defensive assets during negative periods.

The strategy may be suitable for investors who have accumulated wealth and want to protect it against inflation whilst earning a healthy yield well in excess of cash.

Performance as at July 2022
Current Report
Past Reports

Source: Drummond Capital Partners, BT Panorama, Refinitiv, FE FundInfo
Past performance is not indicative of future performance Numbers greater than 1 year are annualised. Peers represent a composite of Institutional real return funds. Inception date is 31/3/2018.. The returns shown are net of fund manager fees but gross of model management fees. They are calculated from the DDP model portfolio within BT Panorama and as such may vary over time and vary by individual client.

Strategic

Drummond Strategic Series

These portfolios are designed for investors and their advisers who, having determined their investment objectives, are seeking a professionally managed and highly diversified global multi-asset solution.

The Strategic Series combines the four pillars of Drummond’s investment process in four clearly defined portfolio mandates:

30%

Drummond Strategic 30

This portfolio has a neutral exposure to growth assets of 30% and is suitable for investors with a moderate tolerance to risk and a focus on regular income. The majority of assets are defensive such as government bonds, corporate debt and high interest cash products.

Performance as at July 2022

Source: Drummond Capital Partners, BT Panorama, Refinitiv., FE FundInfo
Past performance is not indicative of future performance. Returns greater than one year are annualised. Peers represent a composite of Institutional multi-asset moderate funds. Inception date is 1/11/2019. The returns shown are net of fund manager fees but gross of model management fees. They are calculated from the model portfolio within BT Panorama and as such may vary over time and vary by individual client.

50%

Drummond Strategic 50

This portfolio has a neutral exposure to growth assets of 50%. It is suitable for investors with a balanced tolerance to risk, seeking less volatile returns and regular income. The portfolio is highly diversified across equities, property, government bonds, corporate debt and alternatives.

Performance as at July 2022

Source: Drummond Capital Partners, BT Panorama, Refinitiv, FE FundInfo
Past performance is not indicative of future performance. Returns greater than one year are annualised. Peers represent a composite of Institutional multi-asset balanced funds. Inception date is 1/11/2019. The returns shown are net of fund manager fees but gross of model management fees. They are calculated from the model portfolio within BT Panorama and as such may vary over time and vary by individual client.

70%

Drummond Strategic 70

This portfolio has a neutral exposure to growth assets of 70%. It is suitable for investors willing to tolerate greater levels of volatility in order to achieve higher growth over the long term. The portfolio combines a large exposure to Australian and international equities with other growth asset classes such as real estate and alternatives.

Performance as at July 2022

Source: Drummond Capital Partners, BT Panorama, Refinitiv, FE FundInfo
Past performance is not indicative of future performance. Returns greater than one year are annualised. Peers represent a composite of Institutional multi-asset growth funds. Inception date is 1/11/2019. The returns shown are net of fund manager fees but gross of model management fees. They are calculated from the model portfolio within BT Panorama and as such may vary over time and vary by individual client.

90%

Drummond Strategic 90

This portfolio has a neutral exposure to growth assets of 90%. With a fully invested growth allocation it is only suitable for those investors willing to accept significant volatility. The portfolio combines a significantly large exposure to Australian and international equities with other growth asset classes such as real estate and alternatives.

Performance as at July 2022

Source: Drummond Capital Partners, BT Panorama, Refinitiv, FE FundInfo
Past performance is not indicative of future performance. Returns greater than one year are annualised. Peers represent a composite of Institutional multi-asset high growth funds. Inception date is 1/11/2019. The returns shown are net of fund manager fees but gross of model management fees. They are calculated from the model portfolio within BT Panorama and as such may vary over time and vary by individual client.

100%

Drummond Strategic 100

This portfolio is a fully invested portfolio that does not utilise our tactical overlay. With a fully invested growth asset allocation, it is only suitable for those investors willing to accept significant volatility. The portfolio is comprised predominantly of Australian and International shares.

Performance as at July 2022

Source: Drummond Capital Partners, BT Panorama, Refinitiv, FE FundInfo
Past performance is not indicative of future performance. Returns greater than one year are annualised. Peers represent a composite of Institutional multi-asset high growth funds. Inception date is 1/12/2021. The returns shown are net of fund manager fees but gross of model management fees. They are calculated from the model portfolio within BT Panorama and as such may vary over time and vary by individual client.

Managed Accounts

Drummond focuses 100% on managed accounts for the delivery of its investment solutions. Each element of our process is refined for implementation within a managed account framework resulting in a considered and consistent outcome for all our clients. Managed accounts enable us to deliver an institutional quality investment process that would normally be confined to pooled funds under a personalised structure whereby our clients retain control, transparency and tax efficiency.

The financial advice industry is undergoing significant structural changes and as standards rise, so to does the need for specialisation. Advisors and their clients are now recognising the need to partner with specialist asset managers such as Drummond. Doing so increases their focus on the increasingly complex advice requirements of superannuation and retirement planning as well as the ever changing regulatory environment. A recent Investment Trends survey of advisors who had adopted a managed account solution found that on average they spend 12 hours less per week on investment administration such as preparing RoAs and following up signatures. These 12 hours are then available for client related activity and business growth.

In addition to the efficiency benefits of managed accounts, there are numerous benefits of the Drummond Capital Partners service:

01

A dedicated investment team delivering a robust and repeatable investment process

02

Disciplined and equitable execution of ideas with real time updates

03

Strong risk management and more consistent portfolio outcomes over time

04

Well established client reporting and market insights content enhancing client engagement

05

Access to our wholesale pricing arrangements reducing total portfolio costs

Drummond’s portfolios and investment service can be delivered as a turn-key solution using our brand or under a white labelled arrangement. There are two main types of managed accounts which our clients can access:

MDA

Managed Discretionary Accounts (MDA)

SMA

Separately Managed Accounts (SMA)

MDAs are delivered via an Investment Program as part of a Statement of Advice. They require an MDA Operator which may be the AFSL Dealer Group or a specialist MDA Operator.  

SMAs are delivered via a Product Disclosure Statement (PDS) issued by the Responsible Entity (RE) of an investment platform.