Mutual-Fund Advisory Program

(redirected from Mutual Fund Wraps)

Mutual-Fund Advisory Program

An investment vehicle in which an investor works with an investment adviser to take a long position in several mutual funds. The program utilizes an asset allocation method that matches the investor's goals. The investor does not pay fees for each mutual fund, but rather pays the average fee to the investment adviser. A mutual fund advisory program allows the investor greater autonomy over his/her portfolio. It is also called a mutual fund wrap. See also: Fund of funds.
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The first installment, A New Approach to Wealth Management , offers a brief introduction to overlay portfolio management, and how it differs from traditional private wealth, mutual fund wraps and separately managed account (SMA) programs.
Meanwhile, yet another layer exists on top of the four quadrants: a range of fee-based products, including separately managed accounts, mutual fund wraps, ETF wraps and unified managed accounts.
Russell's product solutions include multi-manager mutual funds, separate accounts, mutual fund wraps, wealth management tools, world-class research and institutional client service.
According to the advisors queried, 38% of their clients are investing more in mutual fund wrap accounts than five years ago, while 13% said their clients have not changed and 11% said fewer of their clients are investing in mutual fund wraps.
The growing interest in both managed accounts and mutual fund wraps signifies a real shift among investors toward paying asset-based fees for advice, and away from transaction commissions.
Managed accounts and mutual fund wrap accounts are surging in popularity over the last five years as investors opt to pay asset-based fees for advice, according to a national survey of senior financial advisors commissioned by Phoenix Investment Partners.
At the same time, investors that may not be suitable for managed accounts--but who want ongoing advisory services--are turning to mutual fund wrap accounts for the asset allocation, portfolio monitoring and rebalancing features they offer.
Programs range from traditional mutual fund wraps, separate account wraps and private money manager services to unbundled tools that enable individual asset management by Signator senior financial advisers.
GMA will offer a long list of nearly 100 separate account managers and a mutual fund wrap via Envestnet Asset Management, portfolios and investments from AssetMark and ICON Advisers, stock baskets from Standard & Poor's, a managed ETF program from Quantitative Advantage, fixed-income portfolios from Gates Advisers and portfolios from two NEXT affiliated firms: Page One Financial and LVZ Advisers.
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