Magazine article American Banker

Chase Lowers Threshold on Fund Wraps to $50,000

Magazine article American Banker

Chase Lowers Threshold on Fund Wraps to $50,000

Article excerpt

To pull in a wider array of investors, Chase Manhattan Bank has extended its mutual fund wrap program to the bank's branch network.

The move, which took place 10 days ago, lets people with $50,000 or more to invest access 125 no-load mutual funds from 43 fund families, including Chase's own Vista Funds.

The Managed Funds Account had been available only to high-net-worth customers with $100,000 to invest.

The bank rolled the account out to that market in October.

The Managed Fund Account is aimed at the less-experienced investor who needs more hand-holding in selecting funds, said Peter M. Wall, director of research and product development in the Chase Investment Services Group.

The newer version differs from the MFA for affluent investors in that it has eight asset classes to choose from, compared with 11 classes for high- net-worth investors, Mr. Wall said.

"The asset classes are more robust," for the affluent market, simply because that class of investor has more money to invest, he said.

Both versions of the account offer investors the same financial planning and asset services, portfolio performance reporting and rebalancing, Mr. Wall said.

Wrap fees for the product start at 1.50% for accounts with a balance of $50,000 to $100,000 and decrease according to the size of assets under management, Mr. Wall said.

For example, Chase charges 0.90% for accounts with a balance of $1 million plus.

There are 65 senior financial consultants trained to offer the MFA; investors can make an appointment to speak with a consultant through any of Chase's 500 branches, a spokeswoman said. …

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