Wrap account

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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.

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References in periodicals archive ?
QMY bank has sent me details of something called a Wrap Account.
For such people, the wrap account would be a convenient service.
Pittsford says, "Fees are coming down for Wrap accounts - and that's good.
The Wrap Account Investment Advisor is the first book specifically written on wrap accounts.
Wrap accounts have been popular in the US and Australia.
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.
Lockwood's suite of advisory solutions includes separately managed accounts, flexible mutual fund and exchange-traded fund (ETF) wrap accounts, discretionary unified managed accounts and discretionary mutual fund and ETF wrap accounts.
Owning individual stocks and bonds provides for traditional, low cost and direct access to the markets while eliminating high management fees of mutual funds and wrap accounts," Alt explains.
The Active Diversified Alternatives Portfolios series and Active Diversified Funds series are discretionary mutual fund wrap accounts which are part of Active Portfolios investments, a family of professionally managed solutions that provide sophisticated investment alternatives for accumulation or income needs.
Whether this technology is being used by wrap accounts or institutional buy- and sell-side customers, our innovative ADR products and ADR Desk make it simple to invest in a growing number of emerging markets.
With offices in five cities in five states, CIG's experienced investment professionals provide clients traditional brokerage services (stocks, bonds and mutual funds), wrap accounts, RIA managed platforms and alternative investment products such as investment banking/private equity, venture capital and PIPES (Private Investment in Public Equity).