Wrap fee portfolios, also known as separately managed accounts (SMAs), are typically managed by investment management firms serving as sub-advisors to a sponsor who acts as the client’s investment advisor. The sponsor charges the client a single bundled fee which combines fees for various services such as investment management, trading, custody, and administrative functions. Such arrangements create complexities that are specifically addressed by the provisions of the GIPS standards governing the presentation of wrap fee/SMA performance. (From curriculum)