Joint venture integrates re-balancing software with portfolio management platform
Total Rebalance Expert and Orion Advisor Services announced Tuesday a joint venture that integrates TRX's re-balancing software with Orion's portfolio management platform.
The cloud-based endeavor is intended to simplify the portfolio management process, with the direct data integrations between TRX and Orion streamlining adviser workflows and allowing firms to report on and manage assets at multiple custodians and other institutions, according to a news release.
Orion and TRX users will not pay extra for the integration, which is included in the fee structures of both software firms, said Sheryl Rowling, chief executive of TRX.
Ms. Rowling compared the bundling of the two products to a turnkey asset management program.
“It's essentially a TAMP without the cost,” she said, noting that advisers who use TAMPs are typically charged 30 to 40 basis points based on assets under management.
Both Orion and TRX will remain open-architecture platforms and continue to develop integrations with other portfolio management and re-balancing-software providers, Ms. Rowling said.
“There are bundled solutions out there that hold the adviser captive, but if they don't like one piece, they're looking at disengaging their entire portfolio software platform,” she said. “We're not locked in to a particular solution.”
Orion's platform is currently used by approximately 400 advisers and administrates more than $150 billion in assets for about 650,000 accounts, according to the news release. The cost ranges from $45 to $90 per account, depending on how many accounts an adviser has on the platform, according to Orion spokeswoman Giovanna Moscoso.
TRX's platform is used by close to 500 advisory firms and 1,000 to 1,500 advisers, many of them with assets under management of less than $200 million, according to Ms. Rowling. Their annual license fee starts at $5,000, along with a $3,000 one-time setup fee, according to Joshua Clavell, a TRX marketing support expert.