Wrap account

(redirected from Wrap Accounts)
Also found in: Dictionary.
Related to Wrap Accounts: Wrap fee

Wrap account

An investment consulting relationship for management of a client's funds by one or more money managers, that bills all fees and commissions in one comprehensive fee charged quarterly.

Wrap Account

A brokerage account where the brokerage agrees to conduct transactions for the client for a flat fee, usually assessed on a quarterly or yearly basis. This differs from most brokerage accounts where transactions occur in exchange for a commission on the size of the transaction. A wrap account exists to protect the client from overtrading, which is the (illegal but sometimes hard to detect) practice of a broker making transactions to extract commissions rather than to benefit the client. Because this can result in less profit for the brokerage, a wrap account often requires a minimum investment of anywhere from $50,000 to $100,000.

wrap account

A special investment account in which all of the account's assets are entrusted to a professional money manager. All expenses relating to the account, including professional advice and commissions, are wrapped into a single annual fee that generally ranges from 1 to 3% of the total market value of assets in the account. Wrap accounts are designed for individual investors who choose to have a professional money manager handle a part or all of their investments. These accounts usually require minimum initial investments of at least $25,000.

Wrap account.

A wrap account is a professionally managed investment plan in which all expenses, including brokerage commissions, management fees, and administrative costs, are wrapped into a single annual charge, usually amounting to 2% to 3% of the value of the assets in the account.

Wrap accounts combine the services of a professional money manager, who chooses a personalized portfolio of stocks, bonds, mutual funds, and other investments, and a brokerage firm, which takes care of the trading and recordkeeping on the account.

Mentioned in ?
References in periodicals archive ?
Wrap account commissions for discretionary and non-discretionary investment advisory services by securities companies are based on the total assets under management rather than investment performance.
QMY bank has sent me details of something called a Wrap Account.
For such people, the wrap account would be a convenient service.
Morris said it has transformed from an asset-gathering organization that sold variable annuities and mutual funds into an organization with full trading capabilities, including wrap accounts, separately managed accounts and fee-based planning, all initiatives to give Signator's agents the ability to "compete in a world that's not just an insurance world today.
Pittsford says, "Fees are coming down for Wrap accounts - and that's good.
Wrap accounts were designed to give investors professional management with an all-inclusive fee in lieu of commissions.
Ruff also does mutual fund wrap accounts where the client pays a single management fee with no additional transaction costs.
By providing professional money management for a flat fee, wrap accounts offer investors and small institutions the same services enjoyed by the largest institutional investors.
In addition, it provides wealth management services consisting of brokerage and asset management consulting services through the development and sale of various financial products, such as beneficiary certificates, bond investments, mutual funds, equity-linked securities, CP, RP, and WRAP accounts.
To counter challenges by the big banking groups, major securities houses are trying to lure individual clients by offering wrap accounts, which are accounts in which brokerages manage investors' portfolios and offer advice for a flat fee.
She oversees the investment/income portfolio, which includes fixed and variable annuities, mutual funds, brokerage accounts, wrap accounts and all savings vehicles.