Mutual Fund Wrap Use Rises

This is a news story, published by Yahoo Finance, that relates primarily to Financial Planning Association news.

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mutual fund wrap programs

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mutual fund advisor

Financial Planning

•

Business

Business & Economics

More advisors are 'outsourcing' some investment management

Summary

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88% Informative

Financial Planning Association : Use of mutual fund wrap programs has increased in recent years .

Wrap programs allow planners to essentially buy a prepackaged portfolio for their clients.

Advisors say the increased use of wrap programs reflects the broader industry trend in which a growing share of planners "outsource" the investment management of their clients' funds.

Wrap fees range anywhere from 1% to 3% of the assets under management.

"It's kind of the way those broker-dealers get paid, is that 25 basis points or whatever through the 12b-1 fee. Yeah, part of that does go back to the broker-dealer as a fee," he said. "So, I mean, there's economics at play there.".

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informal

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English

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not hateful