What Are Sub-Advised Models?
Sub-advised models available through Oranj are either offered from a direct relationship with a 3rd party asset manager, or from a sub-advised model platform. Accounts utilizing a sub-advisor relationship in Oranj will have the account traded by the sub-advisor to a predetermined model or investment style. This model is selected by the advisor and the sub-advisor has full discretion when trading the account to keep the account within tolerance to the model. Utilizing a sub-advisor can reduce the operational burden of portfolio management and administrative duties.
Adding Sub-Advised Models to My Firm’s Collection
To view sub-advised models, select Marketplace in the left-hand navigation panel. Once on the Marketplace page, click Sub-Advised Models.
You can filter models by asset manager, investment style, or cost. Select the name of the model to see more details or directly compare multiple models. Once you find a model you’d like to potentially add to your Firm Collection, click the “+” to add the model to your collection.
In order to start assigning sub-advised models to managed accounts from TD Ameritrade, Charles Schwab and Fidelity, you will need to execute an agreement with the sub-adviser using the Oranj DocuSign. Once the agreement is executed, the agreement will populate in the Vault.
In order to have a relationship with a sub-adviser, a custodian-shared access code (additional information can be found here) must be established with your custodian and the sub-adviser so they can trade the account or household portfolio to the model. This process may vary but typically takes 1-3 days to establish. The sub-adviser will engage you and the custodian to establish the custodian-shared access code. You can store the custodian-shared access code in Custodian Settings on the Admin page. Otherwise, when you first assign a sub-advised model to an account or household portfolio, you will be prompted to enter the custodian-shared access code. If you have any questions about the shared access code, please reach out to firstname.lastname@example.org.
Once the shared custodian feed is established, you are ready to assign a sub-advised model to an account or household portfolio. When assigning a model, please note there could be account cash minimum and trade setting consideration. You will be prompted with a confirmation before assignment is complete. Be sure and read the conditions carefully before selecting Confirm.
Terminating Sub-advised Account Management
After account or household portfolio is assigned to a sub-advised model, the account or household portfolio will no longer be editable and you will not be able to rebalance via Oranj. This is done because the sub-adviser is trading the account or household portfolio to the model and we do not want to create any conflicting trades. You will be unable to edit the account or household portfolio until the sub-advised model assignment is terminated. When you remove the sub-advised model assignment, you will be asked if you’d like to liquidate the account or ‘hold in kind.’