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The right blend

Wraps are becoming exceptionally popular in today’s marketplace among IFAs. I have been using wraps and, in particular, Transact’s wrap, for over a year and I have been very impressed with its offering.

I started looking at using wraps when it became apparent that the majority of clients I was meeting for the first time had a plethora of unit trusts, pensions, Isas, Peps and demutualised shares, etc.

Typically, each client was frustrated at having investments dotted around with different insurance companies/ investment houses.

Provided that it is in their interests to switch across, amalgamating everything into a wrap serves the client and the IFA well.

The advice and service is fee-based but, due to discounts being negotiated on initial and ongoing charges, quite often the client is better off than if they had invested directly.

Beacon Asset Management manages model portfolios for clients and through a wrap account we can manage these portfolios effectively and with little admin effort.

Provided that wrap managers continue to provide a good service, clients need never move away from them. All forms of sophisticated financial planning are available through wraps, including offshore and onshore bonds, capital gains tax planning via unit trusts, IHT and trust planning, drawdown and phased drawdown to name a few.

Beacon Asset Management prides itself on being able to provide expert financial and investment advice. By having a “whole of market” option, we are able to use the most appropriate fund for our clients’ needs. This has also opened up the opportunity to invest in funds that were previously open to institutional investors, as wrap providers typically trade on a bulk basis.

The use of wraps also means that we can provide our clients with consolidated income and CGT statements from one source to help simplify tax year end reporting for tax return purposes.

By having complete access online, daily valuations are easily accessible for both the client and ourselves.

Isa and stakeholder allowances can be used immediately at the start of each tax year via a simple re-registration process (although CGT may be applicable).

Withdrawals and deposits can be made quickly and simply without the need for lengthy paperwork.

At times of high vola-tility in the market, those more aggressive clients can invest quickly while those more cautious investors can switch into less unpredictable areas if they desire.

Each of our clients’ requirements are different but essentially their needs are the same and by consolidating into a wrap, we can tailor financial plans to meet those individual demands.

John Francis is an IFA at Consultant at Beacon Asset Management


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