Welcome to the monthly Orion Portfolio Solutions portfolio recipe webinar. This month we'll be talking about the MCAM portfolio. This month we're having a slightly different format. Again the motivation for this webinar is really help advisors put together portfolios on the OS platform. So usually we we revolve around a certain theme which is kind of top of mind with media investors. We bring a couple strategists on and they talk about their strategies and how we blend them. This month we're actually going with a pre built. Portfolio recipe what we like to think is the easy button. So the agenda for today is we really have three speakers and three different agenda items before we go to Q&A. And first of all, what are market cycle advised mandates? The second section, we'll talk about the investment characteristics of the market cycle advised mandates and 3rd, how to use MCAM. Also some quick housekeeping notes is that a few hours after this webinar, we will send out an e-mail which will have a replay and we'll also have various resources attached to the webinar Speaking of. Resources. You should see in your lower left hand corner a bunch of resources that are related to the mcam strategy and in the right hand corner, we do encourage you to ask questions that we will answer after the remarks from all three of us. As for today's speakers, I will lead the discussion off and then Ben Vaski will talk about investment characteristics. Again, Ben and I are part of the OPS investment strategist team. Our job is to talk about strategies and the markets and to help really advisors build portfolios. So if you have any questions about how to blend portfolios in the OS platform, you can reach us at OPS research at orion.com. Third, we have lead advisor, consultant Jared Matzke, and there should be a really interesting part. I'm talking about the M camp portfolio because Sharon is going to talk about what's really clicking with advisors on mcam, what's not clicking, and I'll address some of the top questions that he also gets on. So again, why market cycle advise mandates and first of all, it's the easy button that's gonna be the common phrase you're gonna hear because basically, again, it's a prebuilt portfolio. It basically is these portfolios are fairly representative of the average dollar invested on Orion portfolio solution. And again, we're utilizing managers which are very popular in the platform and they're great partners with advisors. The other bull I really want to talk about is that we do actively manage this in terms of risk levels. We're really trying to make sure that the five models that we produce are remain faithful to their risk objectives. Now of course when we talk about the three mandate approach at Orion portfolio Solutions, just a quick background what we talked about at three mandates. There's really the three big ones, beta, active and diversifier. And within each of those, there's really sort of two sort of subsets of different kind of strategies that fall underneath them. So with beta strategies and these are strategies which are designed to really capture basic market movement. And there are those strategies which are really just pure marketplace. They're really just trying to track their indices and they're in there. Those strategies which make classify themselves as active and they are, but their portfolio tilts are not necessarily that large. And so you're really getting beta exposure. Finally, our active strategies and again there are kind of two different kind of active strategies. First of all, there's traditional active now these are investment strategists which are trying to add value through security selection. They're not trying to make big market timing calls. It is really about the security selection. And then there are tactical managers, which again OPS, we have many fine tactical strategies and again tactical strategies are those, they're really trying to add value through market timing calls and you'll see dramatic changes in asset allocation and also in risk levels of those. Energies overtime. Our third mandate are diversifies and again these are strategies designed to diversify equity oriented exposures and there's really two primary classifications here. First of all, there are fixed income strategies. Again these are can be actively managed or even tactically managed fixed income strategies. And then we also have alternative investments those that have low correlations again to the equity market. This could be everything ranging from real assets to alternative strategies that are trend following such as managed futures. Here's sort of another way of categorizing all the different strategies on the platform. So you'll see on the vertical axis, we have the three mandates on sort of the top row above. You'll also see sort of firm sizes. Another way we classify all the strategies on the platform makes a nice visual representation. But there's a lot going on here and we can understand why a lot of advisors may seek guidance in terms of building portfolios. Now again, why is why we think Mcam makes a lot of sense is that we think that it will close the behavior gap. Overtime and again the behavior gap as is defined as really a difference in return between an investment return and the investors return in that investment. And a lot of times due to performance chasing or some emotionally driven decisions, there is a gap in between the investment return and the investor return. As CEO of Orion, Eric Clark has said he thinks that the investment problem has mostly been solved Amin, Amin investment Guy. So I kind of think might a nitpick with that a little bit. What I do agree with Eric Foley is that the investor return is really sort of the top concern and the top thing we're trying to solve. Again, we think that Mcam could be a nice solution for many investors to do. So again, a big reason why the behavior gap exists. It's really sort of that roller coaster of investor emotions. Again, markets sort of rise on optimism and excitement. They finally reached that point and sort of. Maximum euphoria, which is also often the point of maximum financial risk, markets will drop in at first, it goes to those stages of anxiety and denial and then finally it's the people capitulate and panic and you've got to get that point of maximum financial opportunity. Generally speaking, that point of maximum financial opportunity is a great time to buy. But as we all have seen, we've all experienced a lot of times when investors actually want to sell instead of buy. We think that the M camp portfolios again is a way to sort of deal with investor. Emotions, it's the portfolios that design for full market cycles. Ultimately we think they make stickier assets and stick. Your assets are really a win, win, win for all parties concerned and of course most importantly for the investors themselves. Now, again, why use mcam? And again, well, kind of head on these bullet points a few times, but first of all, it's just it's a predesigned model. You have a portfolio that again captures our unique 3 mandate approach and it's across all five risk profiles. Again, it's an easy button. It should be easy to understand for both advisors and investors. The, the portfolio average oversight is from the OPS investment strategist team, which includes Ben and I. As for the investment due diligence on all the different strategies, of course that goes back to the Orion wealth management. Due diligence team and get just a couple of their stats. Of course, you may have heard them. If you haven't, it's a great story. We have 7 experience at credential due diligence analyst with over 70 years of total experience. We have three members. We have CF a charters and we have three members are also candidates for the CFA. So again, it's a very experienced and deep team and very thorough team as well. And Cam is another important component of it is that the strategies that we are utilizing again they are again very popular on the platform. So there are names that people like to use, they're, they're very common and. Portfolio combinations that advisers put together, but they're also a very important point, very strong partners. And when I talk about partners, that means they partner with advisors to make sure that investors are having good outcomes. And again, we're building them for various levels of market participation depending on the risk levels, again between the beta active and diversifier mandates. So just a couple quick bullets about portfolio construction. To get a key point is we're utilizing top strategists and partners on the OS platform. Again, when I say top, they are not only performing well, but again they're great partners and very popular. Again, we have five different models, each of them for the five different risk benchmarks that we use when we're actually building and managing these portfolios. We said we actively risk manage. We are targeting the midpoint risk for each OPS risk benchmark. If you see a trade, it's usually because we're trying to bring it back towards that mid level. Level. And then in terms of the investment characteristics, again the, they're very approximately the OPS average exposures. When we design this, it's not like Ben and I are trying to make a big market call. We're trying to really get them to approximate what the average dollar is experiencing on the platform. The one exception is that we do have slightly more international to be a little bit more global. With that, I'm going to hand the ball off to Ben to kind of drill down to some of the investment characteristics of these mcam portfolios. Are you ready, Ben? Ohh, I just clicked your page for you. How about that yours? You were ready. And you're on mute too? There we go someone here we go, right, all right. Happy to be here to go over some of the investment portfolio construction characteristics of kind of the back end stuff that we're looking at when we're building and maintaining and kind of monitoring these mcam portfolios. So, so First off just a few bullets here on the general portfolio construction. So we use the market cycle mandates risk scoring system that the rusty just kind of went over the portfolio managers which are are rusty and I. Target risk levels based on the five risk levels that OPS advisors and investors are familiar with. So that scale ranging from aggressive growth down to conservative income on that zero to 100 risk scale like like Rusty mentioned that's basically what we're targeting at 1 portfolio for each risk level to make it nice and easy. You know you have a growth investor, you have a growth portfolio 1 to one very easy application. Second portfolios are built with an eye towards anticipated market changes those market. Cycle kind of movements and mandates, right. So we're taking a step beyond looking at what performed well in the past. We're diversifying by mandates with more confidence regardless of what market cycle may be next. None of us know necessarily what market cycle is going to be next. We can only look in the past and we can only kind of prepare ourselves for the future. So there's really no way to to predict and again as Rusty said there's we're not making huge calls on what cycles coming next, we're merely. You know, allocating to each mandate essentially to to give us the the best chance at performing well in in every market cycle. And finally, the the final step in our process is to align these portfolio strategies with each of the mandates. So we're utilizing strategies and strategies that fall again within each bucket. They're carefully selected to fill their role within each of those buckets within you know, fill those roles with mutual funds and ETF's within those chosen models. And then we monitor those strategists strategies, making sure they're fulfilling the expectations that we are looking to them for, making sure they're performing well, making sure their risk levels are are appropriate. And again we'll kind of do those active adjustments as needed to to maintain those proper risk levels that we're looking to see. All right. So more so here's kind of a few more bullets on the general view that that we're taking when we're we're building these models. So First off, they're built with tilt toward value stocks. We generally believe in value investing. We're not taking again huge market calls on value outperforming growth, but we do have a slight tilt towards value oriented strategies. 2nd, we have tilts towards small cap stocks. This inherently kind of comes with active management. They're going to kind of see a little bit more allocation to small cap stocks. But again, we are emphasizing that a little bit more than your your general kind of large CAP index fund. Higher allocations to alternatives than industry averages. So we see a lot of retail investors with you know somewhere between 5% or less in alternative strategies. It's generally in that you know. Typical stocks and bonds, we believe that alternatives have a place especially in this market cycle mandates story where there are times when they're like 2022. We saw a for a lot of the time that commodities kind of had their swing back and it was really quick and it was really sudden and if you didn't catch it early enough, you might have missed on that swing. So we are always allocating to kind of these alternative strategies to be broadly diversified, ready for any market cycle and not miss out on maybe some of those nuances that we might see in different. Cycles. Built with more international exposure than the OPS average. So and one of our other webinars we talked about the positioning of of the OPS platform as a whole. We generally see between 20 and 25% on average to international strategies. International allocations in the MCAM portfolios are going to generally see closer to 30% of the equity being in international equities. Next, fixed income exposures are almost all actively managed. We believe that you know active fixed income is the best way to go rather than a more set it and forget it approach. But especially as we're seeing in the last year or so changes in credit environments, changes in interest rate environments again can happen very quickly. And if you are in this Senate and forget it in bonds, you may be stuck and you don't want to be stuck, you want to be able to move around and take advantage of kind of these. Things and the different credit and interest rate environments. So we really emphasize active management when it comes to our fixed income exposures in the portfolios. And finally just a little tidbit, all of the funds that are utilized in the Mckim portfolios have an average peer group rank in their top third in the percentile range there. So we are monitoring all these funds to make sure that these are high quality, they're they perform well, they do what they're expected and you know this stat definitely shows that that on average we're we're doing OK and picking those funds. Hey, Ben, can I jump in on this page for a second here? So one thing I want to under score that been talking about it again. The way the Mcam port flows were designed again was to really sort of replicate what we're already seeing on the OS platform. So there's really only one active decision that we sort of made on this portfolio. So again, if you look at the average dollar on the OS platform, it is actually tilted towards value stocks. When you look at the average on the OS platform, it's actually tilted towards small cap stocks, the investment portfolios on a platform we tend to have. You know, higher allocations to alternatives, we also tend to have more actively managed strategies. It's not on the slide here, but one thing also about the OPS platform is that relative to the industry, we also have a lot more tactical strategies both in terms of the percentage of strategies and the percentage of AUM. All those are reflected in Mcam. Also on the fixed income exposures, again, we have actively managed strategies in mcam. Again that is consistent with why you see the dollars invested on the platform, The only exception. Again is that we have a little more international exposure and on that point then talk through why we have a little more international. Absolutely. So we've used this slide a few different times as well. You might have seen this slide it's from a vanguard study on international exposures. So basically the the point here is that adding international exposures to your portfolios not only provides you exposures to to just non-us securities that could have periods of outperformance but having a blend or or what we consider a global portfolio is actually going to reduce your portfolio volatility over time. So you know you can see this kind of Gray area here. In between 20 and 45 to 50% in international securities is actually going to reduce your volatility fairly significantly over time for for a long term focused globally diversified portfolio. And that again is is kind of one of the points of this portfolio where we're not just looking for downside focus, but we are looking to kind of smooth the curve, smooth this volatility that you might see throughout these different these different market cycles and international exposure can certainly do that. So as Rusty said, that's the reason that you're going to see a little bit more international exposure than you might see in the average dollar for OPS. But we feel like we have the data and the research kind of behind it that we feel comfortable taking a little bit more of a swing on, on international securities, not only to provide you know potential outperformance like we saw last year. Again, no one could have seen that coming at the beginning of last year and those things can just happen quickly, but also. This portfolio volatility reduction, it is certainly nice, especially in highly volatile markets. So here's kind of the asset allocation breakout of all 5 portfolios. So as we said, we have every OS risk level ranging from aggressive growth to conservative income. Each of these portfolios is essentially going to target the risk level of the midpoint of each of those risk buckets. So aggressive growth, you're 80 to 100 risk, we're targeting around A-90 risk there down to The only exception is conservative income. We like to give it a little bit. More than that midpoint. So you're generally going to see a 15 on conservative income rather than a 10. We just feel like that tends to be a little bit more of the sweet spot for those conservative income strategies and allow us to diversify it a little bit more than you may get out of a 10. So we'll dive more into some of these characteristics and the slides that follow, but it's always nice to have little pie charts to, to take a look at some of these asset allocations. So now let's get into data, some of our favorite stuff to look at. So along the top there you can see each portfolio along with their risk levels. As we mentioned, these risk levels do drift over time and that's generally when you're going to see our active movements is to get those drifts kind of back to that midpoint. So you may see some trade soon getting that aggressive growth from an 86 back up to a 90 that we're targeting and as again that that's. Of our main target is to hit those midpoints and then this is just our all of our current holdings. So this is not just top 10s, this is the actual you know current breakout of all five and Kim portfolios. And I'll just do a brief touch kind of on on some of these names and some of these funds and as OPS partners and advisors you should likely recognize all of these names. So our beta bucket comes from Buckingham, the Buckingham strategies. Are sub advised by DFA. So DFA another recent addition to the OPS platform. They do have this very academic backed research focused generally value oriented view on equity exposure. So again that's where we're getting a little bit of that tilt towards value really strong kind of fundamental research backed equity exposure which is what we want out of our beta exposure. We we're not looking for someone to make big active swings like. You get from your active or diversified hers, but it's it's really not just necessarily pure, pure market exposure on a market cap basis, but there is kind of a little bit more research and academic backing to what they're doing. So we think that's a solid story for the MKM portfolios. We think they have a great kind of chance of of getting through these cycles with maybe lower volatility or or kind of better risk adjusted returns if you if you will into the active section here. So we've got a couple Brinker. Capitals and then meter and horizon, so the the shelter fund that has been around for I mean it used to be renamed Shelter Fund has been around for for a while, definitely a downside focus fund. So it kind of managing that that volatility meter murfield again kind of a downside focused small mid cap equity from destinations that's where we're kind of getting that that small and mid tilt compared to a large tilt that you might see in a lot of. Kind of large cap index funds and then some more pure just active equity allocation from the horizon active asset allocation. So they're not making huge tactical adjustments, but they are making active asset allocation moves within the portfolios onto the diversifies. This is where you're going to kind of see that those fixed income and those alternative strategies. So Taves defensive alpha again taves very downside focused very popular partner on the OS platform. Destinations, multi strategy alternatives. That's where we're going to get kind of more of that alternative strategy. Broad. Broad diversified alternative strategies and then down from there along the bottom, we're going to see kind of all this active and tactical fixed income exposure. And one thing I will mention with all these is that in this breakout, these are all mutual funds. So very low minimums, no minimums on the OS platform there are. That just for trading and for for the accounts that these can be used for. These aren't all mutual fund funds in here, so. Moving on to. Some of the portfolio characteristics, so kind of just apart from holdings, this is just a general breakout of kind of a bit more of a 10,000 foot view of each portfolio. And one addition to this slide apart from the the five portfolios is the Orion risk benchmark along the side. So this is the benchmark that you're going to see in our OS platform. This is basically representing what 100 risk just a basic 100 risk portfolio would be as kind of a. Point of reference there. So you can kind of see the split between beta active and diversify along the top. Obviously on these more aggressive portfolios are going to see a lot more beta and a lot more active in the middle, a little bit more of an even split. And then as we get more conservative, you're going to start to see a lot more fixed income, a lot more diversifies to really manage volatility rather than look for capital appreciation. In the middle here, this is the same data from those pie charts earlier. So as I mentioned our non-us equity is going to be. Roughly 30% of total equity in each portfolio apart from conservative income where we have you know an even split 2% to to domestic and to international fixed income ranges all the way from zero to to 88. So again definitely a focus on targeting risk in each of these and bonds as you all know provide much less volatility. And then just for liquidity purposes there is a 1% allocation to cash in each of the portfolios. We also have sectors here at the bottom. So kind of an interesting I guess way to look at value and growth if nothing else, it is just looking at sectors, so. You know areas like financials and energy are going to be a little bit more value focused and you can see that that our sector exposure tends to be a little bit heavier in those areas whereas something like information technology which is going to be very growth focused. We don't emphasize that as much compared to say a benchmark or or industry standards. And you know I I won't go into every single data point here as there's a lot, but generally you can kind of see this this flow of our sector exposures tend to have just those. Slight, slight tilts to value rather than growth, which is inherent with, you know, the way that these portfolios are constructed. Awesome. Well, thanks, Ben. Now we're going to hand the ball off to Jared again. We've already got some questions in the lower right hand corner. Keep them coming. We're going to address all these questions. And so Jared? The ball is in your hands. How do you use mcam? How do you talk about it? Awesome. Hey, thank you, Rusty, and thanks Ben, for having me on today. For everyone out there who doesn't know who I am, my name is Jared. I'm one of the team leads on the internal desk, so let's get started. If you don't remember anything from what Ben and Rusty spoke about, just remember one thing and Rusty made a comment of it earlier today, but. There's one thing. The easy button. We want the easy button to be synonymous with M Cam and we want mcam to be synonymous with the easy button. So let's get started. Some of the questions you're going to see here are going to be from advisors that we get on the sales desk on a daily, weekly, monthly basis. You know, it's how do I do all the research myself? How do I manage all of these different portfolios? How do I get started with the construction of portfolios on OPS? You know who manages or who are all the managers on OPS, Jared? There's 596 different models. How do I even decide which one I want to start using? And hey John, I really like that market cycle mandate story, but I don't know how to implement it. All of these questions can be answered by simply using the easy bug. You know, these are all questions that we feel very comfortable saying. The market cycle, advise, mandate portfolios will work for you. Now this is a slide that Rusty already went over, but we kind of want to hit it again just because we feel that it's important. So these are just predesigned UML models, you know, leveraging the three mandate approach. You know it's an easy story for you, the advisor to get across to your clients and it's also easy for the client to understand. It's 3 buckets, all different managers that were already using on our platform like. Like Rusty said, the due diligence team over 70 years of experience along with three CFA's and three candidates, they're doing a good job. And then on top of that you have Ben and Rusty and his team of the OPS investment strategist team. So you know there's a lot of eyes on these portfolios. So just know that's and then the one thing I'd like to point out is again we keep pounding this three bucket approach, the three mandate. Approach you're going to have, you're active, you're going to have your beta, and you're going to have your versifiers. So how do we use these M Cam portfolios? It is a multi sleeve strategy, 3 sleeves each the beta active in the diversifier. We also have a single slave for you advisors out there who are wanting to do qualified plans 403B401K. This is a great product to use especially on that qualified plans where you only have 1 allocation of 100%. You're going to have a diversified portfolio that you can know and feel comfortable with putting your clients in at 100%. Application. Like Ben and Rusty mentioned, this is a mutual fund portfolio, so there's going to be no minimum on these portfolios. There's can be no strategist fee and no platform fee. Now if the account is under 100,000, it's going to have a $75 annual maintenance fee. We want to be very transparent here. And then we're going to, like I said, we combined 3 mandates into one, UM, a portfolio. We're going to simplify the reporting so that you can see it across the board. And we're also going to want to show you how to access these. So when you ask me, Jared, how do I go and find these? Really easy. Log on to our platform. Select trading and hit overlay models. This is one way. I'll speak to another way in here in a second. So when you select the overlay models, we're going to list all five of them out here like this. If you want more information or you want to dive deeper into maybe you know the conservative income one, all you do is select the little plus sign next to it and it will drop down and give you the allocations. The one other spot that you can utilize the portfolios would be. In our proposal tool, you just select instead of hitting add models, you select load models and then you select overlay model, and then you select which risk profile you want and then you would hit enter. And we're actually going to prefill all the allocations in for you so that all you really need to do is hit save and download the proposal so you're ready for your meeting with your clients. Again, I don't know how else to say this, but we want it to be the easy button and I did get myself an easy button. Here to remind me and I told Rusty and Ben I'd give them one as well, but I promised I wouldn't hit the button. So I appreciate your guys's time and I'll hand this back over to Rusty and Ben. Awesome. That's really great. And I do need one of those easy buttons. Next, Jared. So again, on the mcam portfolios, we do have our fourth quarter fact sheets, which are out. Again, it's just a nice summary, just kind of explaining again what we're doing, what positions are some basic performance information as well. And again, when it comes to resources, of course, Ben and I and our team are producing a lot of materials. If you go to ryanportfoliosolutions.com, you go into resources, you'll find all of our portfolio recipes that we've created over time that includes. Cookbook, uh, we do have a cookbook, which is really sort of all these ideas that are captured in that and many other ideas that advisors and sales folks have asked us to create in the past. Again, a lot of resources related to strategies and portfolios because ultimately our job in the investment strategist team is to help you build portfolios. And again, of course, Mcam is the easy button to do. So now we have a lot of questions coming in. So I'm definitely going to send some of you guys away, but I'm going to take the first one and then as how did we decide? Rich constituents to use for you know each strategy really for the overall portfolio and I kind of got a related question that I could tag on to that. So again when we built this strategy three years ago, little over three years ago, again it was really the idea of just simply again replicating sort of the average dollar on the platform and again using again the top strategist on the platform in terms of what was being used on the most recipes already and again who were just really great partners with advisors. One thing to point out and you'll probably didn't notice that is we do have 12% of the portfolios and proprietary strategies. You would have seen that in the Brinker names and when the model was first launched over three years ago, it was a utilizing as CLS investment strategy which again which is a proprietary fund, 12% is the Max will ever use in terms of proprietary funds as sort of kind of a an asset level. Sort of related to that is another question is like what are examples of when we would do trades, we did talk about we would do trades. If that the risk levels started to move significantly off, they kind of that midpoint particularly for the the four most popular strategies separate conservative income. We have done some trades related to that and raising the risk levels of the strategies. We've also had some trades when mutual funds have closed within the strategy itself. So those are a couple of different examples there as well. Let's see some other questions is it's a good question regarding looking at the fact sheets and again. We now have three years of history on mcam. I think that was a big question for for many advisors in recent years that didn't have three years of history and how did performance look over the five or ten years if we could sort of back test it again, I think given some of these tilts on the portfolios again it's sort of the average dollar in OPS is value oriented, small cap oriented, active oriented, tactical oriented, non dollar oriented. If you're looking at versus the S&P 500 performance would have you would have participated in gains. That you would have obviously underperformed the S&P 500 in that environment. Now question I have is kind of over that three-year history for Ben is how would you sort of characterize performance over that time frame generally speaking? Yeah. So I mean like you said when you have these really crazy lengths of outperformance from the S&P 500, the broad market active managed strategies tend to not perform as well. So kind of in the the beginning of this three-year track record we did out underperform that the S&P 500. But when you get into these cycles like we saw last year where you know international outperformed, domestic commodities were outperforming. The entire year value outperformed growth by something like 38%. These really volatile kind of abnormal cycles are going to be where this strategy really shines. So you know our our our tilts toward value or tilts toward international or our alternative exposure. Also just the active management and our fixed income is going to really kind of help navigate these environments on a on a more quick kind of reaction time than you'll see maybe from like I said like a set it and forget it type. One strategy, so definitely in volatile markets you're going to see these market cycle advised mandates, portfolios really you're kind of shine. Awesome. So let's see here. The next question is, is for Jared and that question is for mcam. It does seem like kind of an A Swiss army knife for a lot of different applications for investors, but what are some situations that mcam may not be the best answer? Yeah, hey that's a great question Rusty. I would say probably in the in the non qualified space you know these probably make the most sense to be in a qualified accounts. I also saw that there was a question out there about 403 B's. I think this is a great portfolio to use within those 403 bees realm just because in four other views you get one allocation like I mentioned earlier of 100% and so you might as well use something that is a Swiss army knife across. Across the board. So that would probably be my answer to both questions. Awesome. Alright, so let's talk about fees a little bit. So Ben coming back to you is we're using these various mutual funds and so obviously the the front end cost to this is pretty attractive, but what is the, what is the asset weighted underlying expense ratio for these mutual funds we're using? Yep. So again, I think as Jared touched on, there's zero platform Fee, 0 strategist fee. So kind of on the surface level there, it's a zero fee product if you are above 100,000 in the account. As for model expense, we're generally going to see between kind of 80 and 95 basis points total on an asset weighted basis on average across the five. Portfolios, yeah, cool. So question is, again, how often is this rebalance? This is a great question. So against professional money managers would probably want to more actively manage this than we do. But we really try not to do too many trades in this. And it really takes sort of the risk levels to get really kind of close to one of those risk boundaries. So right now, most of the models are slightly under that midpoint of the risk level. So all this equal, you'd probably expect us to probably raise risk on a trade. Nothing is imminent because nothing is really threatening sort of that threshold. Again, we don't rebalance due to. Inactive market call. So if all of a sudden we said, you know, like we love growth stocks, we're gonna try to somehow emphasize the growth stocks. We're not going to do that. It's probably going to be more of a reflection again of what sort of the OPS average dollar is doing. Now Ben, you wanna take the first step on a question here is again we do have the overweights and alternatives and so kind of in simple laypersons terms, how would you describe our alternative exposures? Yeah, so I I said the easiest blanket statement for describing alternatives is anything you can invest in that's not a traditional stock or a traditional bond. So in these strategies we're going to see something like the destinations Multi Alternatives Fund. You're going to get kind of a broad basket of of commodities and real asset type exposure in there. So that's one form of alternatives maybe not necessarily applicable to these portfolios but more applicable to to just alternatives in general. You might see private equity or hedge fund exposure or even real estate could could be considered an alternative investment. So real estate investment trusts. So it basically is blanket statement just anything that's not your traditional stock or bond something someone is just. Doing things a little bit differently is how I would describe alternatives. Yeah, again there are little low correlation strategies and again it is we're using multi strategy approach. So it's bringing things in like could be managed futures, it could be merger arbitrage. So it's really again strategies that are designed to be zigging when the overall market is lagging. So it's kind of an alternative, no pun intended to sort of fixed income exposure. All right, Ben, I'm sending another one back your way is. So we kind of touched upon this a little bit. But the, you know what, we we've already answered that one, so I'm not going to do that. So my question is so how do we get paid and so how are fees built into this portfolio since we're not taking a fee up front. And again it's like a lot of mutual fund portfolios. The reality is, well, one, we did mention it, 12% of these strategies that are in proprietary funds. And so obviously there's a management fee that our our in-house investment management firm gets paid and then ask for the other firms. Basically there's Rev share that's built into those. Yeah, those class shares that we're using, again the total expenses are the total expenses and you will see that that already been articulated earlier. So looking here at the questions that we have right now and what we've already had. Let's see here. I think we may have. Hit all of the questions that have come in. Ben or Jerry, is there anything you think we've missed? Rusty, Rusty, I'll ask you a question. I know we covered this a lot in the beginning, but you were kind of part of the creation of these in the very beginning. So what's your kind of 1 sentence? Elevator pitch on on why we're using encan? Jeremy made it easy, you know it's it's it's just the simplest way if you're new to the whole PS or. It's again, it's the easy button. So if you just want a prebuilt portfolio that is actively managed to ensure that you've got the risk target that you wanted a portfolio for. Mcam. That is the answer. Now if everybody starts using mcam, the problem to it is a significant problem is that the investment strategist team at OPS may not have as much work to do and so it could actually create job insecurity for some members on that team. Hopefully it's not me. So we don't want to see wider adoption of MCAM, but we still want people to call us on how to build portfolios as well. Love it. So awesome. How much of the easy button cost, Jared? In case we have one by one or six 1199 on Amazon. But that was easy. It works nice, nice, great. Well we ohh here's another question. Is there a comparable product out there, another good question. So I guess you could say there is a lot of comparable products. So on the OPS platform we do have a lot of asset allocation products which are. Obviously that fit within risk benchmarks. I think what makes this different again it's pre built so we've already we've hammered that point about an easy button but it is actually managed to risk target. So it's an it's an OS product, we use OPS risk score, it is one of the few strategies. Well actually there are some other legacy CLS products which are risk budgeted, they're targeted to risk level but outside of that it that's what this is and. I think those are probably the two things that distinguish it, but we do have a lot of asset allocation products out there. Again the risk is that they could deviate and also if you want to blend some different strategies and philosophies you need to bring them together. Again, it's really, it's, it's probably the best expression of the three mandate approach. A lot of times advisors will when they build a strategy and of course this is a great way of doing it is they'll pick like one strategy from each of the three mandates which is a fine way of doing it. Again, we believe in diversifying not only by asset. Asked by investment philosophy and that is a great way of doing it. But in this particular case, we have multiple strategies that we're using for all three of those mandates. So again, it's just that again we think it's probably a better expression of the three mandate approach. Well, if we keep hanging out a little bit longer, I bet we get some more great questions. And if what we did not answer your questions today is again, by all means reach out to us and OPS research at orion.com. You can also reach out to me at rusty@orion.com. You can reach out to ben.vaski@orion.com. So I was also going to say if any of the advisors out there have questions, your internal or external are a great resource to utilize as well if Ben and Rusty are too busy or or not available. Always answer emails within 24 hours, that's the problem. We got another question that's great. So the question is what statistics do we use to build our risk benchmarks. Again we do. Ben and I have created various materials on the risk benchmarks, but basically the risk score on Orion is what is basically trying to capture is a risk level versus the global equity markets. So we talk about for aggressive growth portfolio if we're targeting at 90 level, 90 level that means we're taking 90% of the risk of the global equity market and how is that defined, we're basically looking at two different. Statistics over 4 different time frames and so these numbers should be somewhat familiar is 1, we're looking at a relative standard deviation number. So if the market has, you know, the overall market has 20% standard deviation and these have, you know, 30% standard deviation would be 150 risk score. But we also bring in beta, which of course is related to relative risk in, but it also brings in correlations as well. So standard deviations beta over 4 different time frames. And that is what comprises the risk for. These are updated on a monthly basis. So they're fairly stable yet they will capture movements in risk characteristics within the global markets which do change over time and this will be captured in those risk stats. So hopefully that helps answer that question. If you need more, we got plenty of materials, we have white papers, we have short videos and of course you can just reach out to us with those e-mail addresses if we need more next month. Our our portfolio recipe is on global portfolio recipes. We have two strong partners coming in and talking about. Why at global investing makes a lot of sense right now and please register now for that. And here are some disclosures for our webinar. And thanks shellman today. Thank you. Thank you, rusty. Yes, and thank you everybody for your time and trust and Orion portfolio solutions and we will see you next month. Thank you. _1718496087266

Market Cycle Advised Mandate Portfolio Recipe

Now with three years of track record, the Market Cycle Advised Mandates (MCAM), portfolios are designed to help guide your clients to the right portfolio based on their unique risk tolerance, market participation attitudes, and investment goals. MCAM delivers actively managed, UMA portfolios that align with investor expectations and embody our three-mandate investment process.

Join Orion’s Chief Investment Strategist Rusty Vanneman, CFA, CMT, BFA, Investment Research Analyst, Ben Vaske, BFA, and Lead Advisor Consultant, Gerald Matzke to hear how you will find allocations that are representative of the models, strategists, and characteristics that are broadly found on the OPS platform in one “easy button” within each portfolio.

The CFA® is a globally respected, graduate-level investment credential established in 1962 and awarded by CFA Institute - the largest global association of investment professionals. To learn more about the CFA charter, visit www.cfainstitute.org. The CMT Program demonstrates mastery of a core body of knowledge of investment risk in portfolio management. The Chartered Market Technician® (CMT) designation marks the highest education within the discipline and is the preeminent designation for practitioners of technical analysis worldwide. To learn more about the CMT, visit https://cmtassociation.org/. The CMT Program demonstrates mastery of a core body of knowledge of investment risk in portfolio management. The Chartered Market Technician® (CMT) designation marks the highest education within the discipline and is the preeminent designation for practitioners of technical analysis worldwide. To learn more about the CMT, visit https://cmtassociation.org/.

For financial professional use only. Not intended for public distribution. Orion Portfolio Solutions, LLC a registered investment advisor. Brinker Capital Investments, LLC a registered investment advisor.

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