Thank you for taking some time out joining us on this webinar, kind of a special unique webinar and a look at some of our OC IO services that we offer here in Orion as well as some of our custom indexing features that we've recently added here at the firm. My name is Kurt Brown, I am the President of the OC IO here at Orion as many of you know. We recently did a partnership with Orion, the firm that I founded as a firm called Town Square Capital. And in the in the summer of 2022, we were acquired by Orion. And we're really excited to be here. It's been a lot of fun being a part of this culture and being a part of this work family here at Orion. I think it's appropriate maybe to give a little, just short background on, on how we got here, my background by trade that I've been in the capital markets business for about 30 years, worked at an investment bank. I was a floor trader in New York early in my career. Eventually was a Co manager of a large cap growth fund. With that as a background, I want to bring in a long time friend of mine. Andy and I have known each other. We used to be at competing firms a long time ago and he just a a great guy, wicked smart guy who spent several years developing a custom indexing solution that is really really elegant. And and before I bring Andy on, this is one of those solutions where you could power it yourself. Put this up. On your desktop, on your dashboard and use it for your purposes. Or you can actually have Rocio Services group run what Andy's going to show you right off the trading desk where you're just giving directions and orders to the traders to execute and drive these types of features that Andy are going to show you. So Annie, take it away. That's great. Thanks, curt. Really appreciate the introduction. So what I want to do is just spend a little bit of time going through what custom custom indexing is and then talking about some of the features and capabilities that we can do with the Orion offering. Now to talk about custom indexing, I'd like to look at this through two different lenses. I like to look at this through the advisors perspective and I like to look at it from the clients perspective. And if I just spend a minute here looking at it through the advisors perspective, it really is no more. Difficult than simply saying it's a technology that can set on top of a portfolio which allows you to customize the portfolio. Now that could mean a lot of different things, a lot of different people, which we'll talk more about here in a minute. But it's really just a technology which is helping you scale your business in a customizable way. If I were to switch gears though, look at it from the client's perspective. So if I were in your shoes, then I was explaining to a client what I found is that the chart that we have up here really helped. Decline understand what a custom indexing portfolio is and we do this through a four step way of explaining it. The first step is that you select your index. Now in reality this could be just a portfolio, it could be anything out there. It doesn't really matter. But we're going to keep it simple. We're going to assume it's an index and let's just for the sake of conversation say it's the Russell 1000, so we're going to pick the Russell 1000 exposure. Now once they picked the exposure, we're going to unwrap that exposure, meaning that where a client may access that Russell 1000 position through an ETF or a mutual fund, what we're going to do is we're going to unwrap it and we're going to own the underlying individual component or at least a sample of that. And by unwrapping them and owning the positions, what we can now do is moving on to step three. We can customize it and that may mean taxes harvesting it may mean tax transitioning, it may mean limiting certain. Sectors or industries or working around a country to position, but you have a lot of latitude because once you own the pieces you can put the portfolio back in a way which makes the most sense for that and incline. And then lastly, once you have that portfolio which is built for that client, now you have to manage it and whether that's tax loss harvesting or whether that's rebalancing the portfolio or helping the client take money out for a withdrawal. The ongoing management is going to be important so that we continue to maintain that objective and deliver that through an over a long period of time. So that's custom indexing at a very high level. Now moving into the Orion custom indexing solution, there's a lot of flexibility and a lot of different capabilities that we have within our offering now. In fact, there's so many that I can't possibly cover all of them. But what I do want to do is I want to segment them to I think what are the three most commonly used buckets? And then just peel back the onion a little bit with each one of those different buckets. And so the three that I think are the most appropriate to talk about would be first tax transitioning. Second would be tax management and then the third would be other forms of customization. Now with respect to tax transitioning, tax transitioning is a way of incorporating legacy positions or existing positions into a new portfolio. And So what you're doing is saying rather than starting with a blank sheet of paper where you're just going to assume that it's all cash, you're going to start with a portfolio that may have a lot of embedded capital gain or may have a concentrated position. And by bringing those positions over in kind and building a portfolio around it, what you can do is you can really create a solution which is. Build and customize for that client which makes the most amount of sense for them. And what you really see this being used a lot is if you weren't transitioned over multiple years or if you really want to stick within a cap gain limit where you've declined doesn't want to realize any more than let's say 10,000 in capital gains. So tax position can be a really effective way of not just making a change in a portfolio, but also an effective way of prospecting and helping win new business by facilitating that business to move over from a from a different firm or make declined to have. So it really bringing it over in a way which is suitable for the client and where you're not really creating a lot of capital gains to get them there. Now we have a great proposal out there. I would encourage you to reach out to to our team. We're happy to run a proposal or transition proposal for you. Here's just a quick sample of what it would look like, very robust, but also very easy to explain to a client the benefits and the transition of what that would look like. OK. So that's the first bucket, tax transitioning. The second bucket would be tax management. Now again, we could spend an entire presentation just on what we can do from a tax management perspective, but there are two within this category that I think are worth worth talking about for the purpose of today's conversation. And the first would be capital gain budget. Capital gain budgets are where I mentioned earlier of transitioning a portfolio and often doing it over multiple calendar years. But the other way of thinking about the capital gain budget is that it can really help create more certainty around what the exposure, what the tax exposure would be for that end client. And so I think back, not really important this year, but if I think back to 20212021 was a very difficult year for clients and capital gains, they took a lot of unexpected capital gain. So what we can do is we can set up. Budget around that account we can set a ceiling and say that the portfolio won't exceed a certain threshold of that capital gain exposure. Other way of thinking about. Tax management would be in the form of taxes harvesting. No, I think most advisors on the call are familiar with Texas harvesting, but on this chart. We found this short to be very useful for end clients just going through and explaining the benefits of owning the underlying position and how just because you own the market, that doesn't necessarily mean that every position in the market or every holding will be on. And by knowing that in a in a market or in a portfolio, we have some that are up and some that are down, what we can do is we can take advantage of those positions which are down, harvest them and then use them either to offset gains or to use them in later years. Now in the Orion offering, we'll look into this daily. We're going into account every day looking for losses, taking those losses where we can. And oftentimes what we're doing is we're either helping diversify the client portfolio or we're saving them a bunch of losses that they can use in future years and creating that value when we can create that value, when it becomes opportunistic. The Texas harvesting can be another form of offering value to that end client. Now the third category is a very broad category and again I'm only going to scratch the surface on what we can do, but it would be all other forms of customization. This could be ESG screen, it could be fake based screening, it could be diversifying around a concentrated position, it could be around limiting the number of gains in the portfolio. Great little story, something that we've been seeing a lot come from our clients. There's a, there's a a quick stat out there that the the weight of apple and the S&P. Is greater than the weight of the entire energy sector. And so something that a few clients are reached out to us about is, hey, can we, can we bump up the amount of energy exposure that we have in the portfolio? And the answer is, yeah, that's another form of customization. So there's a lot of different things that we can do. And if you have a question of if you can do it, I would encourage you to reach out, have a conversation with us more than happy to give you guidance on the different, the different options that we have are disposal. So lastly the the one last thing that I want to talk about here is. There's a lot of offerings in the marketplace when it comes to custom indexing and direct indexing. But I really do have a lot of conviction that we had Orion are doing it the best. And it's not just because of our offering and what we can do, but it's also because we have I think through the Orion technology stack, through our core competency, a lot of things that we can do that others just can't. There are a couple that I want to highlight specifically. There are things like cost there going to be a lot more cost competitive than many firms out there. We're able to use our, our, our platform to bring down those costs. But even beyond the things like cost that that might be very important, there are other other things that we do that will make your life as an advisor easier. That would be things like incorporating the account opening process or the reporting process into what you already know. So when it comes to opening account, we're looking at probably 30 seconds, maybe 60 seconds worth of work on the Orion end to be able to build an account out and sign a strategy to it, get it over to my team for trading. So it's very efficient from your perspective to to open account or to do account maintenance for that portfolio. Another thing that I'd like to point out when it comes to the Orion technology stack and using our competitive advantages, the reporting. We've spent a inordinate amount of time. Spending a lot of resources getting the reporting right and we've heard a lot of deposits come to us and say that the reporting is just beyond what what's out there in the marketplace. And and I really love what we've done here because we've taken what is a really complicated thing whether it's tax management or customization or owning the underlying position. It really tries to distill it to how can you have, how can you sit down with a client and have a conversation with a cut away from it. And they they feel really good about what the conversation was. Sometimes that means highlighting. Performance because it might have been a really good quarter or year. Sometimes when you have year like this year when it when it's more difficult or year like 2022, you know you have to repurpose, you have to change the narrative a little bit. And one ways of one way of changing the narrative, at least one way that we offer on the report here is by calling out things like tax savings. So if you notice in the top right corner, we are calling out in a very simple dollar and cent terms what taxes have we saved to that end client now, not are you talking about why the market was down or how much the market was down. You can talk about how much tax harvesting we've done and how much value that's created in a market where it pays to be opportunistic to take those losses. So whether it's talking about taxes or planning or the transition, it becomes a more robust narrative that you can have outside of just performance. So the reporting that we've created is something you have access to will be branded under your own. Your own firms branding and it's obviously up to you as to whether you want to run that monthly or quarterly or ad hoc, but but it's there at your disposal when I get I think a competitive advantage that we have out there in the marketplace. So with that, I want to thank everyone for taking the time today and look forward to the questions you have. Andy, that was fantastic. Thank thank you so much for taking the time to walk everybody through the custom indexing and and and you know teasing that out a little bit, we could probably spend you know two or three hours going into the details of that. So obviously if anybody has questions and wants to follow up on that, don't hesitate to reach out and all of the contact information is right at the end of this webinar. Thanks, Kurt. Yeah, we got a couple of really good questions here. I'm going to go through these fairly quickly. But in terms of commonalities, couple questions on. Cost. I love the question on cost because. We are one of the lower cost offerings in the marketplace that I've seen out there. And the reason we could be a lower cost offering is because we've integrated ourselves into technology. And so out of the gate where 15 basis points, 15 basis points and that's irrespective of the strategy or how much you have allocated to us, the flat 15 basis points, we keep it nice and simple and not only is that cost competitive with ETF's out there, but when we think about the value and the benefit you get just from the tax service being alone. You more than cover the the the low cost associated with it. So I think it's actually one of the advantages that we have compared to a lot of firms who are much more expensive. So 15 basis points great, great price and again that's irrespective of the mandate that dovetails into another question we got we have a couple of and that's minimal. Minimums, it's 100,000 minimum at the mandate level, meaning that if you pick the large CAP portfolio that's 100,000. If you have a small cap that would be a separate 100,000. So very low minimum too compared to a lot of offerings in the marketplace. Question on custodians, we're available at all the major custodians, Schwab, TD fidelity. So, you know, we should have you covered when it comes to where you have your assets custodied. There is a question on Texas harvesting and I'm not sure if this question is for OC IO specifically or more for custom indexing. I'm going to try and answer this two ways. For the Osai offering, when you want to do Texas harvesting, it's really, it's really dependent upon what cadence you want to have set up with the OC IO team. Some advisors want to do that ad hoc, some prefer to do that yearly. Some prefer to do that a little bit more frequently. If we look at it through the lens of custom indexing though that's something that we do daily. We are very active when it comes to harvesting losses. We're going in every day. We're looking for losses. We've been have take losses every day, but we're trying to be as aggressive as possible. But when the opportunities do come, we're not missing out on those opportunities to harvest losses. If the client can't use them today, that's OK, they can carry them forward. And again that that ties into the reporting that I had showed earlier. And then the last question we have here is on setup demo output kind of all the above. So I'm going to pull that apart a little bit in terms of setup. The next steps would be you would sign a sub advisory agreement. There's no cost to getting set up to use custom indexing. You sign the sub advisor agreement. That would kick off roughly a week long process where we go through. We'd set up your database so that you have access to the strategies. If you decide not to use it, no problem, you don't have to use it. There's no commitment to it. But once you do have access to it on your database, it's like I mentioned earlier, all of 30 seconds to assign an account to a strategy and begin using it. With respect to demo output, we have a we have a great report. I only briefly showed it, but it walks the client through what a transition would look like and mount models out different scenarios. It could show different capital gain targets, and we'd love. To run that for you and show what we can do. And So what I would encourage you to do is reach out either directly to us with the custom indexing at a ryan.com, e-mail again that's custom indexing at a ryan.com. Or reach out to your sales professional and they'll be happy to hear your information our way. And we can, we can help out however we can. So I'll turn it back over to Kirk. Thank you so much for taking the time out of your busy schedules to to learn a little bit more about our SCO services as well as our custom indexing features. If you have any questions at all, don't hesitate to reach out. You can see there's some instructions there on the screen. We've got our own website for this and whatnot. You could see down in the chat there's an e-mail address that you can reach out to as well and have a wonderful rest of your day and a great week. _1732263167750