Investment Process Enhancements – Updated Risk Methodology, Clarified UMA Diversification, and Improved Proposal Generation

In January, Orion announced the launch of a new Investment Strategy Research Group (a dedicated due diligence arm of the investment team), and with that, an amplified focus on creating more clear and helpful investment processes for advisors and their clients.

That amplified investment focus has led to a few exciting enhancements—to asset and client risk scoring, and our three-mandate diversification process.

Client-Facing Risk Enhancements

The first and simplest enhancement to Orion Portfolio Solutions’ risk landscape is a simplified risk tolerance assessment. The assessment has been shortened to seven, highly targeted questions that benefit the investment process in two ways:

  1. The shortened, yet meticulously designed format delivers a more user-friendly experience at the front-end of the investment process, setting the tone for a positive client experience without sacrificing client insight.
  2. The user-friendly focus of the questions increases transparency into the investment process, helping clients more readily understand their own attitudes toward risk, their investment timeline, and their overall financial objectives.

Click here to download the risk assessment, which will be integrated into our proposal system on July 27th.

Investment-Centric Risk Enhancements

Our Investment Team and newly created Investment Strategy Research Group have come together, in collaboration, to create a more robust investment risk scoring methodology—one that will be implemented uniformly, across the Orion family of brands.

Like the client risk tolerance assessment, the risk scoring methodology is designed to be simpler, as well as more responsive to the changing market landscape. The combination of a clear and easily understandable risk scoring process, and more nimble investment risk profiling is designed to support a more comfortable and aligned investment process for advisors and clients, alike.

And in an effort to instill greater clarity into the investment process, our standardized risk bands are being renamed. Through the new naming conventions, investment risk band categorizations will better represent the characteristics of each associated investment strategy.

Updated risk band naming conventions on the Orion Portfolio Solutions platform

Click here to download our new risk scoring methodology brochure. The new methodology will be implemented on July 27th.

As the risk scoring methodology enhancements are implemented, current portfolio risk scores will likely change. We’ve created multiple resources to help you evaluate and address portfolio risk changes, as needed, which are detailed in the Risk Methodology Enhancements FAQ. Click here for more information.

UMA Process Enhancements

The pursuit of a more clear, helpful, and aligned investment process doesn’t stop at enhanced risk measures. Orion’s Investment Team seeks to further support the advisor-client investment experience through a clarified UMA diversification process.

Orion has long supported advisors and clients through a unique three-mandate diversification process, which advocates the use of three distinct mandates, or investment types, to align portfolio risk and market participation with client expectations. Through the planned enhancements, that core process remains the same, but under a new brand—Market Cycle Mandates.

The new name places greater emphasis on mandates, which are the main driver of the investment process. Through a more mandate-forward brand, the investment process should be able to solidify the diversification with investors, upfront—better preparing them to understand and adhere to their well-diversified investment plan.

To coincide with this effort, the underlying mandate names are being pivoted to better represent the objective of each diversification strategy:

Updated mandate naming conventions on the Orion Portfolio Solutions platform

The UMA diversification rebrand will go into effect on July 27th. Updated documents and resources will be delivered on the effective date.

Proposal Generation Enhancements

Lastly, but certainly not least, an enhanced proposal generation system will be launched on July 27th. The new proposal system will bring the previously mentioned enhancements to life, hosting the client risk tolerance assessment, displaying new risk scores, and facilitating the updated UMA diversification process. The new system will also deliver a number of enhancements to the portfolio construction process, including:

  • A modern design and improved user interface, designed to better guide you through each step of proposal generation
  • A more robust investment allocation dashboard, aimed at supporting more confident and convenient portfolio design
  • An improved proposal output, updated to help you bring your investment process to life and better connect with clients and prospects

Additional details will be provided closer to launch. Stay tuned!

From investment process enhancements to new and improved technology, there’s a lot to be excited about in July. Our Investment and Product teams are working diligently to ensure you are well-equipped to manage your investments, clients, and business with confidence. Additional details about each enhancement will be delivered in the coming weeks. However, in the meantime, please navigate to our Enhancements Resource Center, which provides an overview of each initiative, as well as relevant resources for download. Click here for more information.

If you have any questions, please reach out to your Regional Sales Team at 800.379.2513, option 1.