Wrap Platform

What is a Wrap Platform?

In order to run an efficient wealth management proposition for their clients a financial planner will need to use some sort of "Wrap Platform". A Wrap Platform is merely a benign structure, or system, for holding your pension and investment funds in one place and it is not a contract.

The platform allows us to manage your money, monitor performance and get clear information on how the overall portfolio is performing. It also allows us to manage risk, making sure that you are not taking a higher (or lower) risk than you are comfortable with. The platform can hold various accounts, or "pots" of money, such as your ISA, your pension, and Unit Trust money. Each can have their own independent risk level depending on your plans for the money, and how long you intend to invest for. Most importantly, the platform gives us total flexibility and choice in where your money is invested, we have access to top fund managers and can invest in many different funds on your behalf, once again reducing risk by diversification.

Many financial planners adopt one or two wraps and one investment solution to run their entire wealth management proposition. This is not necessarily a bad thing as you will be able to see all Wrap holdings in one place and it’s pretty simple.

Ultimately though, this can lead to compromise, increased charges on certain plans, fragmented apportionment of risk, and lack of impartiality. If you wanted to change the Wrap itself, a plan or an investment it would prove very difficult and the service to you could suffer demonstrably. Also, the consideration of your borrowings, protection plans and the use of trusts is often overlooked.

There are a number of Wrap Platform providers in the marketplace. We can advise on the best for your circumstances and the amount you wish to invest. We are not tied to using one Wrap provider,you could in fact have investments with two, or even three wrap providers. This may sound complicated, but not so.

Our client system "Enable" links all of the information together. All you need to do is login and you will see clear details of your investments and the up to date values.

In selecting which platform(s) may be suitable for you we look at a number of factors such as security of custodianship, the underlying tax wrappers required, size of investment, initial charges, on-going charges, switch fees, range of funds, integration with our own systems, functionality and the ability to re-register off platform without penalty if you need to transfer holdings at a later date.