Displaying items by tag: personalized indexing

Orion Advisor Solutions recently unveiled significant enhancements to its technology during the opening session of the firm’s flagship Ascent conference. Founder and CEO Eric Clarke addressed an audience of 1,600 advisors and revealed the firm’s new Story Paths advisor-facing technology for its Orion Custom Indexing solution. The new technology will allow advisors to easily select from one of several user paths which allows the advisor to customize portfolios or tax transition legacy assets within a handful of steps and minutes. The announcement comes as consumer demand for more personalized services has increased with assets in direct indexed SMAs ballooning to $362 billion. Orion’s Custom Indexing solution, which was launched in 2018, allows registered investment advisors to differentiate their offering with personalized, professionally managed, low-cost portfolios. Clarke stated, “While other direct indexing solutions cater almost exclusively to wirehouse advisors, we set out to build a solution with a heavy emphasis on customization that meets the needs of the independent advisor.” The new Story Paths workflow enables advisors to create truly custom portfolios at scale, whether they’re aiming to track a traditional index, replicate a factor-tilted exposure, or overlay to an existing internal or third-party separately managed account. In addition, the new technology will streamline the portfolio customization and tax transition process to a matter of minutes compared to the industry normal of multiple days.


Finsum:Orion recently unveiled new enhancements to its direct indexing technology that will allow independent advisors to create truly custom portfolios at scale within minutes.

Published in Wealth Management

New Age Alpha, which provides equity and fixed-income advisory and sub-advisory services, recently announced the launch of its new direct and custom indexing platform, SPACE. SPACE, which stands for Systematic Personal Asset Customization Engine, is designed to allow the user to build and trade customized alpha or beta index strategies. While SPACE comes with the typical benefits of other direct indexing platforms such as tax optimization, transparency, and ESG screening, it also includes additional features unique to New Age Alpha. For instance, users can build an alpha index strategy by customizing the underlying holdings of an ETF and utilizing factor screens across growth, value, and New Age Alpha's proprietary "Expectation Risk Factor." SPACE offers three primary applications, direct indexing, custom indexing, and prebuilt strategies. The direct indexing application provides the ability to invest directly in the underlying components of well-known indexes and ETFs through an SMA, allowing maximum tax optimization. The custom indexing application provides the ability to build custom, thoughtfully aligned alpha or beta indexes through personalization across various filters, screens, and factors to meet your client's specific needs. The prebuilt strategies offer the ability to invest using any of the over 120 indexes using New Age Alpha’s proprietary Expectation Risk Factor methodology.


Finsum: Asset management firm New Age Alpha launched SPACE, a new direct and custom indexing platform that offers unique features such as the ability to build an alpha index strategy with the firm’s proprietary "Expectation Risk Factor."

Published in Wealth Management

Direct indexing has been all the rage this year with many researchers predicting it will be the "next big thing" in investing. For instance, a few weeks ago, a report from Cerulli Associates estimated that direct indexing is poised to reach more than $800 billion in assets by 2026. But not all research firms share this sentiment. According to a recent study by asset management research firm Blackwater Search & Advisory, direct indexing is a “niche service that mostly benefits specific high-net-worth investors.” The firm believes that without a wide range of investors, the growth of direct indexing may not be as large as previously thought. According to the report, “Direct indexing is not necessarily the best option for everyone. Not everyone needs or wants the degree of customization that direct indexing offers, and the variety of funds already existing on the market is more than enough to craft interesting portfolios.” Many pundits talked about direct indexing as an “ETF Killer” due to greater personalization and tax advantages. However, ETFs offer a broad range of funds that appeal to a much wider number of investors. So, while direct indexing may continue to grow its market share, it appears that it isn’t the “ETF Killer” it was once projected to be.


Finsum:Based on the results of a recent study, direct indexing may not see as much growth as previously thought due to the strategy mainly benefiting affluent investors.

Published in Wealth Management

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top
We use cookies to improve our website. By continuing to use this website, you are giving consent to cookies being used. More details…