Holding Your Investments in a ‘Wrap’

A Wrap aims to save you both time and money by providing you with:

• One point of entry to an extensive range of products and investments including ISAs, Unit Trusts, Investment Bonds and Pensions.
• A one stop shop for transactions, cutting down the hassle of dealing with multiple providers and streamlining processes.
• A single view of your whole portfolio on one statement.

In a fee paying environment it does not generally benefit clients for assets to be held by different institutions as the adviser advice and administration fees will be higher. It is now possible to hold the vast majority of these assets in one place in an open architecture Wrap.  This wrap in turn can buy and hold most worldwide investments, retail and institutional. This allows cheaper and more efficient administration by BPH Wealth Management.

From an investment point of view, as Asset Allocation is very important, this can only be efficiently viewed, managed and administered if all assets are held under one wrap. One consolidated tax certificate is produced saving time on preparing the client’s Tax Return. It takes many hours to determine an asset allocation from disparate holdings and several hours to prepare an accurate valuation.  It can be a matter of minutes to do this if assets are held in one place and valuations are available online 24 hours a day.  This reduces time cost fees and gives BPH Wealth Management the tools and time to provide a proper service to clients and spend more time with them.

A Wrap provides BPH Wealth Management with the tools to provide:-

•  Ongoing asset allocation advice and rebalancing
•  Independent selection of investment funds from around the world
•  Fee based, no commissions or other additional charges
•  Personal attention and advice
•  Clear, visible and accessible investment
•  Flexibility of investment style
•  Pulling together scattered investment holdings into one disciplined strategy

How do Wraps work?

Wraps make use of 21st century technology, which is unhindered by financial product providers’ high cost old ‘legacy’ products and administration platforms. Wraps use secure internet systems to streamline investment transactions, administration and service, whilst also enabling a single view of all your investments.

What are the benefits?

Wraps will revolutionise the UK investment and financial planning market place due to the range of benefits that they offer private clients and their professional investment advisers.

Benefits include:
•  Wide range of investment options, ensuring personally designed portfolios
•  Wide range of tax planning wrappers to meet changing financial needs
•  Single fee structure removing commission bias
•  Access to institutional investment funds which can halve the cost of investing
•  Very low transaction costs enable investment decisions to be made on merit
•  Timely transactions enable effective asset allocation
•  Ease of administration gives you time for life and your Financial Planning professional time for you<
•  A single statement removes the need for overflowing filing cabinets

Are they secure?

Wraps are very secure. Your assets are held on your behalf by a major financial institution. For some aspects of the Wrap you also benefit from protection under the Financial Services Compensation scheme. Your personal data is kept private using firewalls and encryption techniques. Wraps are as secure as any other investment solution.

Which Wrap does BPH Wealth Management use?

We use whichever Wrap is most appropriate for our clients’ current and anticipated future needs. Typically this will be dependent on the value of your investment portfolio, the tax shelters required and your financial goals. BPH uses Wraps from  Transact, Seven Investment Management, Fidelity, CoFunds, and any others which may be suitable for your needs.

Are Wrap investments guaranteed to make money?

Unlike most investment portfolios, Wraps can be tailor made for your needs. If you need very low risk investments a Wrap can be suitable, although if higher risks are required this can be accommodated too. Some investments via a Wrap can be as low risk as a bank account but even they are not 100% guaranteed!

Is a Wrap for me?

This depends on your circumstances, but in many cases the answer will be yes because the potential benefits are considerable for most people. However a Wrap will not deliver these significant benefits without an integrated and personalised Financial Plan. The decision about whether to use a Wrap should be taken in conjunction with the construction of your Financial Plan.  Sometimes it may be appropriate to phase investments into the wrap over several years due to Tax considerations.