Wrap Accounts and Fund Platforms

“Wrap” Accounts are a relatively new way to administer your investments. Wraps enable private clients and their professional advisers to streamline portfolio administration significantly, allowing both parties to concentrate on the more important matters of achieving their financial plans, goals and aspirations.

We have taken the decision to exclusively use the Transact wrap platform for all wrap accounts

There are many other platforms on the market, but few enable us to agree one charge with our clients for managing their investments and then be able to select virtually ANY investment available in the UK. Most other platforms limit the number of funds available and have less transparent charges.

What are the Benefits of a Wrap Account?

• Wrap accounts are available on the Internet to give immediate information, meaning that investors can review their wrap account information 24 hours per day, 7 days per week, 52 weeks per year

• Most existing funds can be transferred "in specie" and ISA/PEP funds retain their tax advantaged status

• Wrap accounts allows investors to adjust investment goals as income and lifestyle change without high cost

• Wrap accounts have a transparent charging structure - this is in line with the latest Financial Services Authority thinking on Customer Agreed Remuneration.

• The popularity of wrap accounts outside the UK is widely attributed to their flexibility. One of the principal advantages is that whole families can organise their affairs together. Whilst they maintain their individual aims and objectives, the arrangements take full account of each other’s situations.

• Completing your tax return is a much easier task with your investments all stored in a wrap account

• Cash can also be held and usually at a very competitive interest rate

• Portfolio performance can easily be reviewed and rebalancing done in a very streamlined manner

Make contact with us to discuss how we can help

What’s included?

Most investments and pensions can be catered for via a Wrap. Essentially the Wrap account should be viewed as an administrative umbrella – you do not invest in the assets of the Wrap provider nor does the Wrap provider own you assets – you own them and they are invested with the various underlying fund management groups which your adviser and you have selected.

As all investments are held within one “wrapper” although in different accounts (ISA, Pension etc) once an investment strategy has been agreed, the Wrap enables the re balancing of this to match the agreed Attitude to Risk of your portfolio to be achieved very simply without the need to buy and sell individual holdings yourself.

You are able to view your holdings over your own account access over the Internet. Valuations can be obtained virtually instantly.

There is a simple fee charging basis, agreed on an individual basis with you, and this enables substantial discounts to be negotiated by the Wrap provider from the fund management groups.

Essentially, Wraps move the concept away from product driven sales to an advice process, the Wrap account simply being the mechanism whereby investments are bought and administered.

If, however, you are unlikely to want to take a more hands on view of your investments and/or prefer the security of the more “household” names for your pension plan, for example, Wraps are unlikely to be for you.

Owing to the flexibility of the accounts, whilst dealing charges may be lower, administration costs ongoing may be higher, so if you are unlikely to use all the features of a Wrap then you could be paying for things you will never need or use.