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Finance Dictionary and Glossary of Investment Terms
wrap account
Definition 1.
Account in which a brokerage helps an investor find a money manager in exchange for a flat quarterly or annual fee, which covers all administrative and management expenses. sometimes also includes funds of funds.
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Definition 2.
An investment account in which the investor receives brokerage and other investment services for a single, predetermined price -- usually a percentage of assets ranging from 1 percent to 3 percent. Wrap accounts have gained popularity in recent years, in part because many investors got tired of putting their money into funds that ""nickel-and-dimed"" them with smaller fees.A wrap fee can also remove the temptation for a broker to repeatedly buy and sell (churn) for the sole purpose of generating commissions.
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Definition 3.
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.
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Definition 4.
An account in which a brokerage manages an investor's portfolio for a flat quarterly or annual fee. This fee covers all administrative, commission, and management expenses. Sometimes this also includes funds of funds.
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