Wrap Fee

What is a 'Wrap Fee'

A wrap fee is a comprehensive charge levied by an investment manager or investment advisor to a client for providing a bundle of services, such as investment advice, investment research and brokerage services. Wrap fees allow an investment advisor to charge one straightforward fee to their clients, simplifying the process for both the advisor and the customer.

BREAKING DOWN 'Wrap Fee'

Wrap fees are generally set up to be a percentage of the assets under management. The wrap fee is intended to provide payment for all the direct services the customer receives, as well as cover the administrative costs incurred by the investment firm.

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RELATED FAQS
  1. My FA recommended a wrap fee for me, is that appropriate?

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