American Express Financial Advisors Inc. has introduced a wrap account that offers mutual funds and individual securities coupled with financial advice.

The Diversified Portfolio Service, introduced Monday, lets customers invest in more than 500 proprietary and third-party mutual funds, as well as stocks and bonds.

This is the first wrap account from the Minneapolis-based Amex unit to offer individual securities as well as funds. The company offers two other mutual fund wrap accounts.

Sarah McKenzie, vice president of wrap and trust services, said the company hopes to add other products, such as variable annuities, to the new wrap account next year.

The account requires a $50,000 minimum investment, and annual fees are roughly 1% to 2% of asset value, depending on the amount invested and how much financial advice the customer uses.

Meanwhile, a sister company, London-based American Express Asset Management Ltd., announced it will add 12 funds in the next several months in Japan.

The company has two funds in Japan, one investing in global equities and one in non-Japanese stocks, a spokesman said.

The goal is to boost the company's assets under management in Japan to $1 billion in five years, the spokesman said.

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