TAMPs Offering Direct Indexing
Table of Contents:
As direct indexing continues to gain traction, TAMPs (Turnkey Asset Management Platforms) and managed services offering direct indexing are playing a crucial role in helping advisors deliver customized, tax-efficient investment solutions at scale. Each provider brings unique strengths in technology integration, tax management, ESG customization, and advisor support, making it essential to compare their offerings carefully.
This guide first explores direct indexing options from Orion Portfolio Solutions, AssetMark, SEI, and Envestnet, outlining their features, benefits, and challenges. Next, whether you focus on scalability, customization, or tax efficiency, it’s essential to understand these platforms. Moreover, comparing their features and benefits side by side can help you determine which best aligns with your needs. Furthermore, evaluating their strengths and potential drawbacks will provide deeper insight into making the right choice. In the end, having a clear understanding ensures you can make a well-informed decision that best serves your clients and practice.
Orion Portfolio Solutions
– Custom Indexing Solution
Orion’s platform enables advisors to create personalized, tax-efficient portfolios at scale. Launched in 2018, it integrates proposal generation, trading, and reporting within a single system, simplifying the management of direct indexed portfolios.
– Key Features
- Personalization: Advisors can tailor portfolios to clients’ specific needs (ESG, sector allocations, security exclusions).
- Tax Efficiency: Proactive tax-loss harvesting and tax-effective transitions help boost after-tax returns.
- Scalability: Saves significant time per high-net-worth account, making large-scale management more efficient.
- Integrated Technology: Combines proposal generation, trading, and reporting within one cohesive system.
AssetMark
– Direct Indexing Offering
AssetMark delivers direct indexing solutions via Adhesion Wealth, specializing in personalized investment strategies for advisors.
– Key Features
- Customizable Portfolios: Not only do they replicate index performance, but they also align with unique client goals and preferences. Additionally, they offer flexibility in tailoring investments to specific needs, ensuring a more personalized approach.
- Tax Management: Tools for tax-loss harvesting and minimizing tax liabilities.
- Advisor Support: Dedicated resources to help advisors implement and manage direct indexing.
- Broader Integration: Part of AssetMark’s platform, allowing access to multiple investment solutions.
SEI
– Direct Indexing Solutions
SEI has extended its SMA and UMA solutions to include direct indexing and factor investing, offering more personalization and tax control.
– Key Features
- Customization: SEI supports fixed income-based direct indexing, dividend-focused equity options, and more.
- Tax Efficiency: Includes tax-loss harvesting and personalized tax management tools.
- Integration: Part of SEI’s Managed Account Solutions, creating a cohesive portfolio management experience.
- Investment Strategies: Offers multiple systematic strategies with an emphasis on minimizing tracking error.
Envestnet
– Direct Indexing Solutions
Envestnet’s Quantitative Portfolios (QPs) have been on the market for over nine years, establishing it as a major direct indexing provider.
– Key Features
- Cost Efficiency: Priced lower than many actively managed SMAs, this option not only provides a cost-effective route to personalization, but also helps investors optimize fees. Furthermore, it allows for greater flexibility in tailoring portfolios while keeping costs manageable.
- Personalization: Not only does it support traditional customizations, but it also accommodates more complex strategies, such as factor-based approaches. Additionally, this flexibility allows investors to tailor portfolios to specific preferences and investment goals.
- Integration: Works seamlessly with tax and/or impact overlays, fitting into the broader Envestnet ecosystem.
- Strategic Partnerships: Collaborations with BlackRock and Fidelity expand personalization options through UMA platforms.
Comparison table of Turnkey Asset Management Platforms
| Provider | Customiz – ation | Tax Mgt | ESG | Tech Integrati -on | Clients | Min Invest | Notable Features |
|---|---|---|---|---|---|---|---|
| SEI | High | Yes | Limited | Seamless SMA/UMA integration | Advisors, Institutions | $100,000 | Established QP (Quant Portfolios), scalable for larger practices |
| Envestnet | High | Yes | Yes | Fully integrate with Envestnet ecosystem | Advisors, RIAs, HNW clients | $100,000 | Established QP (Quant Portfolios), scalable for larger practices |
| Asset Mark | Mod–High | Yes | Yes | Part of Asset Mark’s advisor platform | Advisors | $250,000 | Adhesion Wealth support, tailored direct indexing options |
| Orion Portfolio Solutions | High | Yes | Yes | Integrate -d proposals, trading, and reporting tools | Advisors, RIAs | $100,000 | Modular interface, tax-efficient transition, household-level customization |
Detailed Comparison
SEI
– Strengths
- Emphasizes personalization by offering not only fixed-income investments, but also dividend-focused options. Furthermore, this approach provides investors with greater flexibility to align their portfolios with specific income and growth objectives.
- Integrated within SEI’s managed account solutions
- Focus on minimizing tracking error and accommodating client-specific tax preferences
– Challenges
- ESG customization is more limited than Envestnet or Orion
- Less robust multi-goal, household-level technology tools
Envestnet
– Strengths
- Nine+ years of direct indexing (Quantitative Portfolios)
- Scalable solutions for large practices or institutions
- Extensive ESG options integrated across Envestnet’s platform
– Challenges
- Higher minimum investments can deter smaller firms
- Ecosystem reliance may not suit those needing standalone solutions
AssetMark
– Strengths
- Adhesion Wealth support streamlines advisor onboarding
- Solid tax-loss harvesting and personalization balance
- Integrates with AssetMark’s full range of wealth management services
– Challenges
- Higher minimums than some competitors
- Less flexible technology compared to Orion or Envestnet
Orion Portfolio Solutions
– Strengths
- Flexible, modular platform for proposals, trading, and reporting
- Tax efficiency at scale, ideal for high-net-worth transitions
- Household-level customization for multi-account client strategies
– Challenges
- Requires adjusting to Orion’s specific workflows
- Less emphasis on certain investment styles (e.g., dividends, factors)
Key Takeaways of Evaluating Various TAMPs
- For Technology Integration: Orion stands out with advanced, modular tools and end-to-end portfolio management.
- For Large Practices: Envestnet offers a well-established platform, scalable solutions, and robust ESG functionality.
- For Personalization & Tax Focus: SEI caters to specialized strategies (e.g., fixed income, dividends) with integrated tax management.
- For Advisor Support: AssetMark provides extensive resources and guidance via Adhesion Wealth, making implementation smoother.
Each provider has distinct advantages; therefore, the choice ultimately depends on your firm’s client demographic and strategic needs. Additionally, it’s important to consider factors such as technology integration, tax management, and customization options to ensure the best fit for your practice.
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