Orion Advisor Tries To Eclipse The Competition With New Portfolio Rebalancer

Orion Advisor Tries To Eclipse The Competition With New Portfolio Rebalancer

In the early days of computer software, tools were sold separately… until Microsoft came along, and bundled its full suite of Office applications together. Now, Iskowitz notes that the same type of bundling is coming to wealth management software, particularly when it comes to the wide range of advisor rebalancing software, with more and more companies either acquiring solutions (from Morningstar buying tRx to Oranj buying TradeWarrior), or building them. The latest in the “build” category is portfolio accounting and reporting software Orion Advisor Services, which has announced “Eclipse”, its new rebalancing software that will be available in the fall, bundled directly to Orion’s core platform. The software uses a modern tile-style interface to navigate key areas (Portfolios, Accounts, Trades, Models, etc.), and to track key information (portfolios Out Of Tolerance, or with a Cash Need, or with a Tax Loss Harvesting opportunity). Notably, the software doesn’t do rebalancing across a household, but it can rebalancing multiple accounts to a single portfolio, and aggregate a portfolio-of-portfolios that roughly approximates the equivalent of a household. Constructing models themselves in the software is especially user-friendly, with a drag-and-drop tool to create and edit models, with tiers of asset classes and underlying investments (or models and sub-models). And not only does the software include tax loss harvesting capabilities, but handy supporting automation workflows, such as buying a substitute security for 30 days (to avoid the wash sale rule) and then queueing up a reminder to trade back to the original investment. Other features include: a robust Query tool, allowing for searches of the entire database – e.g., for all IRA accounts at TD Ameritrade with cash greater than $500 – to use the software as a targeted opportunistic trading tool, in addition to “just” a pure rebalancer; the ability to pull in data from held-away accounts via ByAllAccounts or Quovo; and User-level permissioning that allows a home office or operations team to have different (e.g., more in-depth) controls than advisors in the field (who may be more limited). Trades that are queued from the software can be reviewed in an Order Management System before being sent out, and thanks to an integration via FIX, most trades can be implemented with Straight Through Processing (for equities, ETFs, and mutual funds) to various custodians. Pricing for Eclipse will be tied directly to the underlying Orion pricing, at a cost of an extra 15% on top of the existing Orion per-account fee (which effectively comes out to about $6 to $10 per account per year for rebalancing capabilities, depending on the firm’s account volume breakpoints).


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