Wrap Fee

A “Wrap Fee” is a comprehensive fee charged by investment firms that covers various services such as investment management, brokerage, and custodial services. Instead of paying separate fees for each service, cLients pay a single fee that ‘wraps’ all services together, typically expressed as a percentage of Assets under management. For example, a cLient with a wrap fee of 1% on a $500,000 portfolio would pay $5,000 annually. Cases often arise with advisory firms where the wrap fee may be more cost-effective for cLients with higher Asset levels, while those with smaller accounts might find it more expensive than paying for individual services.