London Pacific Advisors has added exchange-traded funds to its line up of wrap-fee services,
LPA will now allow institutions and independent financial advisers to use ETFs on a wrap-fee basis in passively managed portfolios or with actively managed mutual fund and separate account manager strategies. The minimum investment is $25,000.
Because ETFs are traded like ordinary securities, the transaction costs associated with using them to build a portfolio can be prohibitive, LPA said. The advantage of offering ETFs on a purely wrap-fee basis is that the transaction costs are eliminated.
