Managed Funds Wrap Accounts, which one ?

Hi all,

I was wondering about the various wrap accounts available out there and the pros & cons of them.

the funds that i want to invest in, seem to be avaiable only as wholesale so would require a wrap account to access them. ( Vanguard Emerging Markets & Small Cap and various DFA funds)

I know a number of people here like and use Netwealth.

but has anyone looked at this mob. 2020 Direct invest.

eWRAP Investment - 2020 DIRECTINVEST

they have a eWrap account which seems to have a lower fees than netwealth and a larger pool of funds for selection aswell.

is anyone using them and if so what what are your experiences.

 

Not meaning to divert the topic on a different course, but given the additional fees involved in using a wrap (~1%), add to that the managed fund fees (~2+%?), an alternative might be buying various equivalent ETFs for the regions/sectors you are interested in using a simple trading account?

 

Hi TAO,

I'm not sure which wraps your talking about.
I did a 30% growth profile wrap for a client and the total ongoing cost was 0.78% pa (including ongoing adviser fee!!!). I did another client and we were cheaper than a big industry fund for retail employees before adviser fees.

It's all about how you construct the client's portfolio.

Cheers,

Dan

 

the reason I want to use a wrap account is because, i plan to contribute monthly into my investements, and these contribution would be less than $1000 in value. I want to DCA into the market and across various regions and sectors. Doing so via ETFs would be costly due to the brokerage involved.

 

I personally use www.netwealth.com.au

They have an excellent variety of funds avaliable on the investment menu, both in wrap and the super options including direct shares.

You enter the wholesale version of the funds concerned hence their fee is covered in the discounted MER rates in most cases.

IE investing in platinum funds via colonial would be most expensive than using netwealth.. unless you have $20k per fund to invest direct.

I use the regular savings program so each month I get x amount invested in my selection of funds.. works well.. they also seem to rebate adviser trailing comissions as well I have noticed in the transaction statement.

 

Perpetual have just put out an interesting platform called Wealth Focus, they apparently have an ATO ruling which allows you to switch between funds without triggering a CGT event, there are also some other unique taxation benefits. I don't know how fees etc stack up but it seems an interesting product.

Regards
Alistair

 

Hi Alistair,

Your talking about Perpetual's WealthFocus Advantage which is their newer product. The vanilla WealthFocus doesn't have this taxation "Advantage".

Perpetual used to have another platform (I think it was "Select") though it only had a handful of investment options and they were all Perpetual funds, with WealthFocus you have an array of investment options from different fund managers.

Cheers,

Dan

PS Before making an investment decision speak to your FPA registered Financial Planner.

 

thats tax thing is interesting!