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TAMPS and managed services offering DI
Table of Contents:
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: Replicate index performance while aligning with unique client goals and preferences.
- 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, providing a cost-effective route to personalization.
- Personalization: Supports both traditional and more complex customizations (e.g., factor-based approaches).
- 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
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, including fixed-income and dividend-focused options
- 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
- 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; the choice depends on your firm’s client demographic and strategic needs.
Offer personalized experiences for every client at scale