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Wrap Accounts

Wrap Accounts simplify the process of investing in a broad spread of investment products and provides a single point of reference for obtaining valuations at any time. These also produce regular reports on the progress of investments and simplifies the processes of adding, withdrawing or making changes to investments.

Some accounts offer a limited number of products from which to choose, while others offer a very broad range.

The cost of the master trust & wrap account administration is often partly or wholly offset by providing access to wholesale investment products, which have substantially lower costs than retail investments from the same fund manager. When all investments are made through one account, the investor is better able to monitor the performance of his or her portfolio. This is because the trustee or custodian of the account consolidates all information received from the fund managers and prepares a regular report for the investor.

The trustee or Responsible Entity holds title to all the trust assets and ensures compliance with the trust deed. Within these accounts, an investor can be beneficially entitled to investments acquired and held on his or her behalf.

These investments can be unit trusts or direct investments (depending on the master trust’s trust deed). All income from these investments is pooled and beneficially owned by all investors. Accordingly, the tax treatment of investments held within the account is the same as if the investor held the investments in his or her own name.

The flexibility of wrap accounts varies, but in general the advantages of a master trust include:

1. Access to a large range of investments.

2. Access to cost efficient wholesale funds.

3. Portfolio restructuring is carried out simply and at no cost.

4. Consolidated reporting (including taxation) from a diversified portfolio.

5. Additional features such as gearing and insurance are often available.

Equiti advisers use and recommend the Macquarie Wrap service facilities.