A wrap account is a professionally managed investment plan in which all expenses, including brokerage commissions, management fees and administrative costs, are “wrapped” into a single annual charge. This charge usually amounts to a percentage of the value of assets in the investor’s account.
Wrap accounts combine the services of a professional portfolio manager and brokerage firm. Based on the investor’s goals, risk tolerance and time horizon, the portfolio manager chooses a personalized portfolio. This portfolio could include stocks, bonds, mutual funds and other investments. The brokerage firm handles the trading and the account record keeping.
Advisory services offered by Ameritas Investment Corp. and Summit Investment Advisors, Inc.