What is a wrap investment?
An investment wrap account brings your investments under the one roof - even if they come from different providers. Instead of holding separate accounts with different service providers for your investments, with a wrap account you can ‘wrap’ up your investments in a one-stop shop. A wrap account typically will include shares, managed funds and cash.
What are the features of a WRAP account?
The hub of your investment Wrap account is the Cash Account for managing your cash flow . You can use the funds in your Wrap Cash Account to buy managed funds and securities and to pay your insurance premiums. When you sell an investment or receive distributions or dividends the funds are deposited into your Cash Account.
Wrap accounts are generally only available if you invest through a registered financial adviser. Many financial advisers recommend an investment Wrap account because it offers flexibility, investment choice, value, control and ease of management. There may also be tax reasons for considering a Wrap account. Your adviser is the best person to recommend the appropriate investment Wrap account for you.
Wrap Investment Benefits
Consolidated reporting
With everything in the one investment Wrap account, you get access to a range of reports for your individual investments, or your entire investment Wrap portfolio. This is one of the ways an investment Wrap account can help you stay in control of your investments.
Easy access
An investment Wrap account centralises your investments through an online platform. This means you have 24/7 access to your portfolio anywhere, any time.
Wholesale investment rates
One of the benefits of an investment Wrap account is that you can buy managed funds at wholesale rates. The management fees for these wholesale managed funds are much lower than if you invest in the same funds outside of Wrap. (Not available on Wrap Essentials)
Simple administration
You and your advisor can develop a portfolio customised to suit your individual needs. A Wrap account provides access to an extensive range of investments, gearing and insurance options, and consolidates this information into a tailored set of reports to help you keep track of your investments and simplify tax time. It also enables your adviser to easily manage and administer your investment portfolio.
Fees
These may include management fees, service costs and adviser fees. You should check with your financial adviser to see if Wrap investments are appropriate for you.
Learn more about types of investments
Did you know?
Multi-manager funds offer you a level of diversification not possible from single manager funds. They give you the power to spread your investment across three levels- asset classes, investment managers and investment styles.
Margin lending, or investment gearing, is a financial arrangement that enables you to borrow money to invest in shares and managed funds. Borrowing money to invest gives you the opportunity to achieve greater returns.
