Meritz, Last Year's Wrap Balance 540 Billion Won... 47% Increase Compared to Previous Year

Meritz Securities Building. Photo by Meritz Securities

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Meritz Securities' branch-managed wrap account balance increased by 47% year-on-year to approximately 540 billion KRW at the end of 2023.

According to Meritz Securities on the 22nd, the balance of branch-managed wrap accounts stood at 536.8 billion KRW at the end of last year, up 46.8% from 365.6 billion KRW at the end of 2022. The number of accounts reached 1,593 at the end of last year, an increase of more than 70% compared to 925 accounts at the end of 2020, three years ago.

Branch-managed wrap accounts are comprehensive asset management products where investment managers at branches, who hold professional qualifications, provide customized management based on customers' investment preferences and objectives. The company explained that their strength lies in the ability to quickly respond to market trends and actively accommodate customer needs.

While general securities firms tend to have their headquarters' management departments operate wrap accounts or outsource them to other asset managers or advisory firms through advisory-type wrap products, Meritz Securities emphasizes branch-managed wrap products where private bankers (PBs) at branches directly manage the wrap accounts.

Relatively low costs are also an advantage. Direct investments incur transaction fees per trade, but wrap accounts generally charge only a fixed percentage of the evaluated balance as a basic fee. Customers can choose to lower the basic fee and opt for a performance fee system based on investment results if they wish.

Customers can monitor their asset status and account performance in real time and communicate with investment experts at any time. They can also easily enter into branch-managed wrap account contracts remotely via Mobile Trading Service (MTS) without visiting the branch in person.

A Meritz Securities official stated, "In a volatile market environment, demand for branch-managed wrap accounts, where investment experts manage domestic and international stocks on a discretionary basis tailored to customers' needs, is expected to increase rather than individual products simply pursuing high returns. We plan to strengthen branch-managed wrap services to provide opportunities for investors who require expert services."

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