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It’s a Wrap…

, Written By Scott Alman

“Wrap platform” is a term you’re unlikely to hear at a BBQ. That’s unless you spend a lot of time around financial advisers or savvy investors.

So, what is a Wrap platform ?

In short, they give investors access to a global menu of investments. They also take care of the tax and performance reporting in a safe and secure environment.

They can save on brokerage, management costs and take away a lot of the administrative headaches associated with investing.

So those who want to try and earn more than what’s available from bank deposits or want to get serious about building wealth, wrap platforms are worth investigating.

The Wrap structure sometimes called a Custodial platform allowsindividual New Zealanders,“mum and dad investors”, call them what you will — to make the type of investments which are usually only available to institutions like Kiwisaver funds and professional money managers.

It helps to create a more even playing field for big players and everyone else.

An investor has the ability to access global shares like Google, Apple, BHP or managed funds including property, index and bond funds.

Dynamic investment

You can build your portfolio in the way that you want to. You have flexibility to trade. This is innovative technology which allows you to tailor-make a portfolio reflecting your preferences.

Wrap platforms also include the facility to make regular deposits and withdrawals, either automatically or manually. A platform makes it easy to monitor and adapt your investment parameters.

As for those who may want a helping hand to navigate the investment world — investment advisers are always available as sounding boards and navigators.In fact, it’s investors with financial advisers who are New Zealand’s biggest users of Wrap platforms.

Low cost

Most importantly, a Wrap keeps fees low.  Costs traditionally associated with investing are reduced because trades are aggregated and interactions are centralised.

The best Wraps also give investors access to a range of term deposit providers,generally at better than retail rates. Often a transactional cash management account has no fee. Its even possible to make tax deductable donations to private donor advised funds.

Streamlined reporting

Tax time. That’s never fun. With a Wrap platform, all the information you need will be there, at your fingertips. No forgetting small investments, no wondering exactly how to account for each slice of the pie. Dividends and interest payments will already be recorded.  Saving your accountant time and money.

And for those who like to keep an eye on their portfolio; you can view your portfolio 24/7 anywhere in the world. It is even possible for personal assets like property to be loaded onto the wrap to gain a complete view of their overall financial position. All that information is there, at any time, readily accessible.

You are protected

While access to a Wrap platform comes via a financial advisor, individual investments are safe. Assets are held in trust for the exclusive benefit of investors. Investments are registered in the name of a “independent custodian”, but the investor always remains the owner and decision-maker. The custodian has no power to make transaction decisions.  Investor assets remain completely separate.

Withdrawals can only be directed to your nominated bank account.

A Wrap platform makes it easy to manage investments, make trades, and administer everything in one place. It’s digital age investing made possible by great administrators and up-to-date technology.

So next time you want to make an impact at a BBQ, try talking some “Wrap”.

This article was published in - www.junoinvesting.co.nz Spring 2018

For more information on Consilium Platform visit www.consiliumplatform.com