The Five Pillars of a Tax Managed Solution

Your clients have unique risk tolerances, tax sensitivities, and investment preferences. One of the most critical tools for enabling tax management is the use of separately managed accounts. Known as “SMAs,” these are portfolios of individual securities managed by a professional investment firm and typically adhere to specific investment parameters, such as a particular risk level, asset class or style.  

Direct ownership of the underlying securities is one of the most important advantages of SMAs, as this is what enables not only more advanced tax management, but greater customization that helps better align portfolios with investor goals and values.

The Orion Tax Managed Solution capitalizes on the advantages of direct indexing and SMAs to enable greater customization for—and control of—client portfolios.

This solution gives advisors the flexibility to provide clients with portfolios that have exposure across various asset classes, investment styles, factors, and themes. The portfolios are constructed under one of the five main pillars: 

1.Market Beta

Exposure to major asset classes and investment styles, including: 

  • U.S. All Cap 
  • U.S. Large Cap Core 
  • U.S. Large Cap Growth 
  • U.S. Large Cap Value 
  • U.S. Mid Cap 
  • U.S. Small-Mid Cap 
  • U.S. Small Cap 
  • Global ADR 
  • Developed International ADR 
  • Emerging Markets ADR 

2. Factor

Exposure to powerful performance drivers, including:  

  • U.S. High Dividend Yield 
  • U.S. Quality Value
  • U.S. Low Volatility 
  • U.S. Momentum 

3. Thematic

Exposure to trends driving the economy and markets, including: 

  • Biotechnology 
  • Cybersecurity 
  • Real Assets 

4. Environmental, Social, Governance 

Exposure to companies that reflect client values on environmental, social and governance issues, including: 

  • U.S. ESG
  • U.S. ESG Dividend 
  • Global ESG

5. Asset Allocation  

The latest pillar in our lineup is Asset Allocation. Orion’s Tax Managed Solution Asset Allocation Portfolios blend fixed income ETFs into our Tax Managed Solution equity strategies to create tax managed portfolios for varying client risk profiles. They are designed to provide tax efficiency, customization, and the ability to tax transition investments, in a multi-asset class asset allocation framework: 

  • U.S. Moderately Conservative 
  • U.S. Moderate 
  • U.S. Moderately Aggressive 
  • U.S. Aggressive 
  • Global Moderately Conservative 
  • Global Moderate 
  • Global Moderately Aggressive 
  • Global Aggressive 

Orion’s Tax Managed Solution can help you address the needs of clients with deeply embedded capital gains, concentrated positions and those seeking more tax efficient portfolios — enabling you to provide clients with personalized portfolios at scale to elevate your advisory practice. 

Learn more about how a tax managed solution can be a powerful differentiator for firms looking to stand out from the competition.