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At VicWide Financial Services, we utilise the Assetlink Wrap Service which is an IDPS (Investor Directed Portfolio Service) It is a badged BT Wrap service. 

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Wrap accounts have become popular but controversial since they were introduced in 1975 by E.F. Hutton after the securities brokerage industry was deregulated and firms were permitted to set their own commission fees. Also known as fee-based investment programs, wrap accounts are offered today by a number of firms.

Wrap account portfolios typically consist of securities - stocks bonds, mutual funds, and other similar market-type assets. The name refers to the fact that these accounts usually "wrap" a variety of investment services, including brokerage commissions, under a flat fee, or a percentage fee - usually from 1 to 3 percent of your portfolio's total market value.

Professional management is another advantage offered by wrap accounts. Because most advisers have access to a number of different money managers, they can match the appropriate money manager with a specific client - based on the client's individual characteristics, such as risk tolerance and financial goals.

There are two kinds of wrap accounts - traditional and mutual fund. Traditional wrap accounts consist of individual securities such as stocks and bonds. Modeled after the first E.F. Hutton accounts, most require a minimum investment of between $100,000 and $200,000. The following services generally are included:

• Consulting
• Custodial Services
• Money Management
• Transaction Costs
• Quarterly Performance Monitoring

A mutual fund wrap account, as the name suggests, is comprised of mutual funds - usually more than one. In recent years, mutual fund wrap accounts have mushroomed. Services typically include:

• Asset Allocation
• Consulting
• Custodial Services
• Transaction Costs
• Quarterly Performance Monitoring
• Mutual Fund Selection

Although traditional and mutual fund wrap accounts are similar in some respects, there are significant differences. First, the minimum investment for a mutual fund wrap account is generally lower - commonly between $10,000 and $15,000. Also, fees are usually lower and average about 2 percent of portfolio market value.

However, there may be other costs associated with a mutual fund wrap account. Such accounts do not take into consideration the fees charged by individual mutual funds for transactions and administration. Also, if your broker is not the primary financial advisor, a separate fee may be charged for the financial advisor's services