Andrew Rosenberger, Head of Custom Indexing at Orion, describes how Tailored Allocation Portfolios are designed to bring more personalization into model-based portfolio management without adding unnecessary complexity for advisors. The idea builds on Orion’s custom indexing work, but applies that same optimization mindset to third-party strategist models, tax-sensitive transitions, and portfolios that need more than a one-size-fits-all implementation.
For advisors, the value is not just customization for its own sake. Rosenberger explains how Tailored Allocation Portfolios can help bring concentrated positions, legacy holdings, capital gains budgets, and tax-loss harvesting into a more coordinated plan. He also looks ahead to Orion’s work on unified managed household technology, where the same optimization framework could eventually help advisors manage decisions across taxable accounts, IRAs, Roth IRAs, and the full client household.
Resources: Orion
Tailored Allocation Portfolios are offered by Orion Portfolio Solutions, LLC, a registered investment advisor. The unaffiliated Strategists whose mutual funds or ETFs are utilized within the Tailored Allocation Portfolios pay us a fee in exchange for inclusion in the Tailored Allocation Portfolios program.
The advisory fee that the advisor determines and the platform fee in addition to other fees that may be assessed by the custodian will still apply.
Custom Indexing is an investment strategy wherein a portfolio is managed to mimic an index or other portfolio, while taking into account the tax position, holdings, and individual investing preferences of a client. The performance of a portfolio using custom indexing may vary significantly from the target index (referred to as tracking error or tracking difference), and this variance may increase with greater customization within a portfolio.
Tax-loss Harvesting is a process by which securities trading at unrealized losses are sold to realize a taxable loss. Proceeds from the sales are then used to reinvest in alternate securities to maintain market exposure. Tax-loss Harvesting can be used as a strategy to offset realized gains from other investments and/or carried forward to later calendar years to offset future taxable gains.
Wealth management services provided by Orion Portfolio Solutions, LLC (“OPS”), a registered investment advisor. Orion OCIO services provided by TownSquare Capital, LLC (“TSC”), a registered investment advisor. OPS and TSC are affiliates and wholly owned subsidiaries of Orion Advisor Solutions, Inc.
This information is general in nature and is not intended as tax advice. You should consult a tax professional as to how this applies to an individual tax situation. Nothing contained herein is intended to constitute accounting, legal, tax, security or investment advice, nor an opinion regarding the appropriateness of any investment, or solicitation of any type.
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