brokerage account placing assets managed by several investment advisors under a single account relationship. In a wrap account, all administrative and management fees, including broker commissions, are rolled into one comprehensive fee, which is paidquarterly. Wrap fees generally vary from 1% up to 3% of the assetsmanaged.
Wrap accounts provide a convenient way for investors to spread their assets over an assortment of mutual funds and have access to top money managers. The broker selects funds matching the investor's asset allocation objective for risk and investment return and receives an ongoing fee to monitor the account. Typically, the wrap fee ranges from 1% to 3% of assets. The mix of funds in the investor's portfolio is adjusted, or rebalanced, periodically to stay within original investment objective.