Wealthtech company Orion Advisor Solutions unveiled technology upgrades to its direct indexing platform during its Ascent conference in Orlando, Fla.
Orion’s new Story Paths workflow is meant to assist advisors in quickly creating custom portfolios. These can be built to track a traditional index, replicate a factor tilted exposure or for creating an overlay for an existing internal or third-party separately managed account, with portfolio minimums start at $100,000.
In a nutshell, direct indexing, or personalized indexing as it is often called, allows investors to replicate an index by selecting and buying its components and many firms have either acquired or built technology over the last several years to streamline and automate the process. Orion first debuted direct indexing technology in 2018.
During an interview after the announcement, Eric Clarke, Orion’s founder and CEO, said his firm had embedded the optimization technology into their trading platform.
“We think that’s going to be a game-changer,” said Clarke. “The optimization technologies can handle so many different preferences that the Story Paths really help the advisor focus on what’s most important to the client and optimize for that outcome as opposed to the myriad of different variables.”
During a breakout session at the conference, Andrew Rosenberger, Orion’s head of custom indexing, said with this advancement, the entire process had been reduced to about three minutes.
“When I think about custom indexing, which is just Orion’s term for direct indexing, there’s a lot of different functionality,” said Rosenberger. “I like to think about it having four different use cases. These aren’t mutually exclusive.”
Rosenburg said those scenarios included:
Tax transitioning, which can “grow your assets under management by more easily winning new clients through Orion’s tax transition software.”
Automatic tax loss harvesting, which can “avoid time-consuming back-office work by leveraging our automate loss harvesting.”
ESG, SRI and faith-based screening, which can “maintain deeper client relationships by aligning the client’s portfolio with their beliefs.”
Investment customization, which can “utilize the separate account structure to unwrap and customize a client’s portfolio.”
Orion is far from the only firm to expand further into direct indexing in the past few months.
But, with the rise of direct indexing offerings in the marketplace, is this something advisors and clients want right now? It depends on who you ask.
Some do not, at least right now.
“My clients want it simple,” said William Amick, of Longleaf Advisory Services, who was also attending the conference.
Meanwhile, Bryce Unck, of LPL Financial, said he “definitely” had seen increased interest in these types of offerings, at least with certain clients.
“Some of my clients are in that high-net-worth space and are asking for it,” said Unck.
However, Unck said, there is still a larger lack of awareness it even exists.
A recent survey sponsored by Parametric Portfolio Associates, a direct indexing provider, conducted by Cerulli Associates, found that more than half of high-net-worth advisors are unfamiliar with direct indexing.
“Some have no clue what it even is,” said Unck. “I think there’s education in it and I think that kind of puts us into a space where we can educate and make sure that with the cost and everything like that, making sure it’s the right fit for the client. But I think there’s a big space for it, especially in our industry right now.”
Orion also announced its first proposal generation tool for Orion Advisor Tech clients, available with its recently introduced Orion Advantage and Essentials stacks. The proposal generation technology workflow is integrated throughout Orion’s tech ecosystem, including Orion Connect, Orion Planning, Communities model marketplace, Orion Risk Intelligence and Redtail CRM, according to the company.
Clarke said their “best-in-class proposal tool” will “help the advisor explain the benefits of direct indexing to the client.”
This means, you take one article, and you use the article distribution system. It will generate thousands of unique versions of your article, and publish those unique articles to hundreds of websites that are related to your niche.
Take a look at our comprehensive guide to the best and most popular information ebooks and products available today on Detoxing, Colon Cleansing, Weight Loss and Dating and Romance. They are all in one spot, easy to find and compere to make a quick selection for the product that best fits your needs or wants.
So browse through a category and make your preferred selection and come back here to read more choice articles and get a few more helpful tips on ways to help your enhancement.
As an Amazon Associate I earn from qualifying purchases. “saubiosaubiosuccess.com is a participant in third party affiliate and advertising programs; The Amazon Services LLC Associates Program, Awin network, and other affiliate advertising programs are designed to provide a means for sites to earn advertising fees and commissions by advertising and linking to products on other sites and on Amazon.com. Amazon and the Amazon logo are trademarks of Amazon.com, Inc, or its affiliates.”
We use anonymous cookies and various 3rd-party services to optimise and to offer you a better, more personalised, browsing experience with advanced accessibility enhancements.
Dismiss
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
