: the first platforms were designed for investors with hundreds of thousands of dollars, with some providing up to 600 investment options. They weren’t appropriate for smaller investors — ‘baby wraps’ were born to fill this gap. They’re also sometimes known as ‘lite’ platforms and ‘mini-master trusts’. Investor Directed Portfolio Service (IDPS):
the Australian Securities and Investment Commission's official term to describe master trusts and wrap accounts. Master trust
: an investment vehicle enabling individual investors or super funds to invest in one or more underlying investments, usually wholesale managed funds. They allow access to a selection of fund managers (either chosen by you from the master trust’s list, or chosen by the master trust manager). Assets are held on behalf of the client. The trustee is the legal owner. Portfolio platforms
: a generic name for wraps and master trusts. Wrap accounts
: similar to master trusts, except you get ownership of all the investments you make, which are ‘wrapped’ up in one administration system. As with master trusts, your accounting, reporting and tax are taken care of; you’ll get a single consolidated report at tax year-end. Assets are held in the client’s name as the legal and beneficial owner (may differ for super).