BT Financial Group is modifying its wrap platform to include term deposits in an effort to satisfy the growing investor appetite for cash during the current market downturn.
"The move is in keeping with our strategy of making the platform a one-stop-shop for advisers where they can pick up their clients' assets and all of their clients' liabilities," BT Financial Group head of wrap solutions Chris Freeman said.
"In recent times we've added life insurance on wrap, we've added gearing on wrap, and a lot of other features so it's one source of truth for the adviser and this is another step in that journey."
The move to include term deposits on BT's wrap platforms was something advisers had been requesting for a while, Freeman said.
"They've always wanted them but with the market volatility and correction the way it is at the moment, a lot of people are looking at cash as a good investment with better yields," he said.
Term deposits will be available on the BT Wrap and BT SuperWrap products from April 14.
Users of the platforms will have a choice between a three-month, six-month and 12-month option, all AA rated, and provided by Westpac.
Interest rates on the facilities will be set each week and the interest will be payable upon maturity.
The minimum amount needed to place an investment in term deposit facilities has been set at $75,000.
"The reason why we set the $75,000 minimum is that if we have less transactions at a higher amount we can arrange a better buying rate in terms of the interest rate," Freeman explained.
Prior to the inclusion of term deposits on BT's wrap platforms, the cash facilities available for investors were a working cash account, which acted like a hub for all investment dollars, and some cash managed funds.
