For most clients, though it depends on circumstances, we will look to hold clients' assets on a wrap platform. A wrap platform is a web-based management, administration, reporting and dealing system and as such it improves adminstration, reduces paperwork and reduces costs.
The benefits of using such a system are summarised below:
Ease of administration for both clients and advisers alike. The system allows an individual to hold all their investments and savings (ISAs/mutual funds/ETFs/investment trusts/stocks and shares/pensions/cash and other assets) in one place thereby providing a central point of access and one consolidated statement and valuation.
There is an overnight price feed, which means you can obtain real-time valuations at any time (365 days a year, in any place) giving you a complete and precise up-to-date statement of all your investments and savings.
It makes monitoring the portfolio, rebalancing and switching, where appropriate, far easier and quicker to carry out.
Substantial discounts on purchases -- with most fund management companies a platform will deal at creation i.e. there will be no initial charge though not always. Many platforms, though not all, will also impose a charge when securities are purchased but not usually on disposal. Any fees levied by Incisive would be in addition to these charges. This provides complete transparency of charges.
Platforms generally provide reduced annual management fees on most investment funds.
In addition to the on line valuations, you have a complete online transaction history, so you have a complete record and "audit trail" for your portfolio.
An annual report for capital gains tax purposes, along with dividend and distribution statements for income tax purposes, will be provided.
Apart from at the outset there is little paperwork, as in the future all purchases, sales, switches and financial transactions can be carried out online, if desired. This eliminates the risk of postal delays or forms, documents and cheques going missing.
All in all such a system offers a huge range of benefits for both clients and advisers and in most instances it is possible to transfer existing assets onto a platform on an in specie basis.