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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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. Are these new because I've never heard of them before?
In the United States, assets held in wrap accounts, more popularly called SMAs, stand above $500 billion, according to Nikko Cordial Securities Inc.
Agents use a mix of proprietary and nonproprietary funds in wrap accounts. A wrap account has a minimum-required value that is low for a fee-only account.
Pittsford says, "Fees are coming down for Wrap accounts - and that's good.
Wrap accounts. Wrap accounts were designed to give investors professional management with an all-inclusive fee in lieu of commissions.
"I don't have enough time to follow the market on a daily basis." Ruff also does mutual fund wrap accounts where the client pays a single management fee with no additional transaction costs.
Wrap accounts provide investors with two primary benefits: personalized service and convenience.
This includes fee-based income from the sales of investment trusts and 'wrap accounts' (a professionally managed investment account with a pre-determined periodic fee, usually a certain percentage of the value of the assets in the account), though sales growth in the latter slowed substantially through 2015.
On the investment side, consider using wrap accounts with a "prudent portfolio" allocation that provides for growth to fight inflation, pays the income and provides stability.
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.