London Pacific Advisors has added exchange-traded funds to its line up of wrap-fee services, London Pacific Group, the firms parent company announced today. LPA is the first to offer a wrap-fee ETF platform that fully integrates separate account managers with ETFs, according to Mark Chamberlain, director of iShares strategy at Barclays Global Investors 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.