I'm interested in learning more on the rationale for fee-based business, and more specifically 'wrap accounts'. If a client had $300k IRA money and a transaction based rep put him in American Funds, Franklin and Van Kampen at $100k each (say, AMCAP, New Perspective, Fundamental Investors, American Mutual, Mutual Qualified, Mutual European, Franklin Small Cap Value, Franklin Strategic Income, Franklin Income, Templeton Foreign, Van Kampen MidCap Growth, and the 3 Van Kampen Growth & Income funds), how would a 1.25% annual wrap fee be better for the client? Let's assume he's 60 in good health and taking a 5% distribution. The load-adjusted return on the above portfolio after 20 years would be about 20bp below nav. They are all team managed and pretty consistently favorable on returns and beta, plus the families offer other good choices without incurring additional sales charges. Some data supporting the fee based approach would be useful to me.