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<span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>Charles:
<span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>
<span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>A wrap fee
account is an investment account that charges a percentage of the value of
assets under management. The account is individually managed and not commingled
as in a mutual fund.
<span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>The fee,
say 2.00% includes all of the following in it. RIA management fees, brokerage
commissions, custodian and performance reporting. The concept here is you will
be able to get institutional quality management for a minimum account of
$100,000, instead of the normal $5,000,000 minimum.
<span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>
<span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>Here is
how a typical fee breaks down.
<span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>
<span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>RIA<span
style="mso-spacerun: yes"> 0.75%
<span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>Brokerage<span
style="mso-spacerun: yes"> 0.15%
<span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>Custodian<span
style="mso-spacerun: yes"> 0.10%
<span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>
<span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>The
balance of 1.00% is split between the broker and his firm.
<span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>
<span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>
<span
style='font-size:10.0pt;mso-bidi-font-size:12.0pt;font-family:Arial'>Rich C.
<span style='font-size:
10.0pt;font-family:Tahoma;color:black'>-----Original Message-----
From: Charles Meyer
[mailto:chaze@xxxxxxxx]
Sent: Thursday, August 29, 2002
7:22 AM
To: REAL TRADERS
Subject: [RT] GEN: WRAP FEES
<span style='font-size:
12.0pt'>
<span style='font-size:
10.0pt;font-family:Arial;color:black'>Group-<span
style='color:black;mso-color-alt:windowtext'>
<span
style='font-size:12.0pt;color:black'> <span
style='color:black;mso-color-alt:windowtext'>
<span style='font-size:
10.0pt;font-family:Arial;color:black'>Can someone please tell me the definition
of a wrap fee? What is the purpose of a wrap fee and on what basis are
they calculated? I'm told these are charges to a customer as it
relates to an arrangement between an RIA and a broker dealer. Thanks
for any feedback. I'm attempting to discover if I've
been stiffed; and by how much.<span
style='color:black;mso-color-alt:windowtext'>
<span
style='font-size:12.0pt;color:black'> <span
style='color:black;mso-color-alt:windowtext'>
<span style='font-size:
10.0pt;font-family:Arial;color:black'>chas<span
style='color:black;mso-color-alt:windowtext'>
<span
style='font-size:12.0pt;color:black'>
<span style='color:black;mso-color-alt:
windowtext'>
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