Previously, Rusty was chief investment officer and president of CLS Investments. An award-winning ETF strategist including ETF.com’s ETF Investor of the Year (2019, 2017) and Wealth Management’s ETF Strategist of the Year (2018, 2016). Global ETFs, ETF Strategist Best Global Insights (2018)
2020 Hot List Recipient
2021 CEO of the Year
Accolades
Media
2012
2017
2018
2019
2018
2019
Won the WealthManagement.com Outstanding Achievement in Portfolio Management award
2017
Published Higher Calling: A Guide to Helping Investors Achieve Their Goals
2018
Named among the Top 10 Portfolio Managers to Watch by Money Management Executive
2018
Received Wealth Management’s ETF Strategist of the Year Award
2019
Named ETF.com's Investor of the Year
2019
Enhancing rational decision-making in wealth management
WHILE INVESTORS now have unprecedented access to data, making sound investment decisions involves more than just analyzing numbers. It’s essential for clients and investors to understand both market psychology and their own emotional impulses to improve rational decision-making. This is especially important during periods of market volatility, when emotions can often disrupt logical thinking.
Ensuring that financial advisors and clients are comfortable with the markets and their strategies is crucial in the wealth management industry.
In conversation with Investment News, Rusty Vanneman, chief investment officer at Orion Wealth Management, emphasizes that his firm is known for behavioural finance. “Our focus on behavioral finance significantly aids advisors in finding the right investment solutions for their clients,” Vanneman
says. The advantage of this approach is that it provides advisors with a deeper understanding of their clients’ overall happiness and well-being, enabling more personalized and effective investment strategies.
Orion has undergone significant transformation since Vanneman joined in 2012. Initially part of CLS Investments, known for its innovative ETF strategies, Orion has since acquired multiple firms, including FTJ FundChoice, HiddenLevers, Brinker Capital, TownSquare, and Redtail. Orion now operates with two primary divisions, technology and wealth management, with Vanneman leading the latter’s investment operations.
Inspired by a friend’s mother who suggested he should be an investment manager, Vanneman started reading investment books and pursued an emphasis on investments at Babson College. A pivotal moment was meeting pioneering investor Sir John Templeton, whose story deeply impressed Vanneman. This interest evolved into a career in wealth management, with Vanneman working in Boston for many years before joining Orion.
Vanneman says, “When we communicate our story with confidence, consistency, and transparency, it enables advisors to convey the same clarity to their clients. Ultimately, it’s about ensuring investors stay invested and diversified. The focus is on enhancing the investor experience.
“Let me share a quick story that illustrates this point. About ten years ago, I was on a personal trip at a cattle ranch near the Black Hills in South Dakota. I struck up a conversation with a retired pastor, and as we talked, he realized I helped manage money and communications for a registered investment advisor in Boston.
“It turned out he was a client of that firm. His face lit up with a big smile, and he gave me a hug, expressing his gratitude. He said his positive investing experience with our firm enabled him to afford this particular trip. He appreciated the consistent support from his advisor, which helped him stay the course through good times and bad. This encounter was unique, especially happening on a cattle ranch in South Dakota, but it underscores the importance of a reliable and supportive investing experience.”
Looking ahead, Vanneman discusses several key trends and innovations at Orion. Behavioral finance tools like Pulse Check, 3D RTQ, and BeFi20 help advisors understand clients’ values, risk tolerance, and financial personality, enhancing the advisor-client relationship.
“Direct indexing is also a very hot topic in the industry right now, and for good reason,” Vanneman states. Orion is expanding resources and leveraging experienced talent in this area, particularly with its custom indexing solutions.
Active management, which has faced challenges over the past 15 years, could see a resurgence, with opportunities for globally diversified multi-asset portfolios to excel once again. Orion aims to stay disciplined and dynamic, ready to seize these opportunities. “Could we finally be entering a period like after the dot-com era, when actively managed, globally diversified multi-asset portfolios started to excel again?” Vanneman wonders.
A promising indicator for active management, according to Vanneman, is the potential outperformance of smaller companies. Since the year 2000, small caps have typically traded at a 20 percent discount to the market, but now they’re trading at a 50 percent discount. Additionally, non-benchmark items such as non-US equities are also at significant discounts compared to the US market.
Spotlight
In addition to manufacturing a reliable rate of return in their investment strategies, Vanneman and his team are dedicated to partnering with advisors by providing quality content and portfolio manager access, which is essential for fostering confidence and clarity in investment decisions.
In the current market environment, Vanneman finds wealth management firms need to remain dynamic in actively managing portfolios. Vanneman explains that Orion’s investment strategies fall into two main categories: direct indexing and discretionary, actively managed portfolios. “Our discretionary portfolios are dynamic and active, adjusting based on market conditions and risk characteristics,” he says. Orion uses a wide range of diversifying asset classes, including alternatives, real assets, and global credit, which differentiates them from other multi-asset managers.
Vanneman further indicates that at Orion Wealth Management, the team conducts thorough institutional due diligence. Risk management is a key component of Orion strategies. As a result, the portfolios maintain stable risk characteristics over time, ensuring dependable performance.
The Orion investment team studies and incorporates behavioral finance principles to promote good decision hygiene and sound decision-making practices.
“Another key aspect is what I call ‘X plus one,’” Vanneman says. The X represents our commitment to ensuring portfolios behave as advertised – that they are differentiated and disciplined. The ‘plus one’ encompasses our client-focused activities, including investment team accessibility, client service, and educational content. This holistic approach helps advisors and investors feel confident in our funds, strategies, and market outlook.”
Orion helps financial advisors build strong and profitable businesses by integrating intuitive technology, flexible investment options, and hands-on support in one open-architecture solution. We help advisors support their entire book of business with scalable investment options, including a simplified UMA process, a selective approach to third-party strategists, and proprietary investments that empower you to build well-diversified portfolios for your clients. Our dedicated high-net-worth program provides direct access to specialty investment strategists and a collaborative case-design approach, and our full-service trading desk – featuring tax-loss harvesting capabilities and custom model management – enables you to easily implement your unique investment philosophy.
Company Profile
12 of the Top 15
Barron's RIA firms rely on Orion's technology
$4.3 trillion
Value of AUM serviced by Orion
2300+
Number of advisory firms served by Orion
$68.3billion
Value of wealth management platform assets serviced by Orion
52,000
Number of advisory reps served by Orion
Bio
Spotlight
Milestones
Media
Accolades
Company Profile
Years of Experience
Over 30
Fast Fact
Host of “The Weighing Machine” podcast
BAsed In
Omaha, Nebraska
Host of “The Weighing Machine” podcast
Rusty Vanneman
Chief investment officer at Orion Wealth Management
How Orion Wealth Management’s innovative strategies and tools strengthen client relationships and improve investment outcomes
Read on
“When we communicate our story with confidence, consistency, and transparency, it enables advisors to convey the same clarity to their clients”
Rusty Vanneman,
Orion Wealth Management
“Could we finally be entering a period like after the dot-com era, when actively managed, globally diversified multi-asset portfolios started to excel again?”
Rusty Vanneman,
Orion Wealth Management
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Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2011
Enhancing rational decision-making in wealth management
Karen Adams has had a remarkable journey to her current role as CEO of Fundserv. Originally from Toronto, Adams earned a bachelor’s degree in mathematics and economics at Queens University, followed by an MBA in international finance at the University of British Columbia. After graduating, she set off across the globe, holding various positions with HSBC that took her to London, Dubai, Hong Kong, Beijing, Shanghai, Seoul and Mumbai.
That global experience gave Adams a unique perspective, prompting her to develop a leadership style that’s based on developing relationships with each individual, listening and understanding to help them reach their potential. That approach goes well beyond her own team, allowing Fundserv to succeed in creating solutions for its members.
“Having worked in many different countries, people ask if I am an expert in multicultural leadership,” Adams says. “I always say there is no such thing because that assumes you manage people based on their background. I have learned that people all want the same things: to develop our careers, give our kids a good future, etc. When she returned to Canada learned that people all
In addition to manufacturing a reliable rate of return in their investment strategies, Vanneman and his team are dedicated to partnering with advisors by providing quality content and portfolio manager access, which is essential for fostering confidence and clarity in investment decisions.
In the current market environment, Vanneman finds wealth management firms need to remain dynamic in actively managing portfolios. Vanneman explains that Orion’s investment strategies fall into two main categories: direct indexing and discretionary, actively managed portfolios. “Our discretionary portfolios are dynamic and active, adjusting based on market conditions and risk characteristics,” he says. Orion uses a wide range of diversifying asset classes, including alternatives, real assets, and global credit, which differentiates them from other multi-asset managers.
Vanneman further indicates that at Orion Wealth Management, the team conducts thorough institutional due diligence. Risk management is a key component of Orion strategies. As a result, the portfolios maintain stable risk characteristics over time, ensuring dependable performance.
The Orion investment team studies and incorporates behavioral finance principles to promote good decision hygiene and sound decision-making practices.
“Another key aspect is what I call ‘X plus one,’” Vanneman says. The X represents our commitment to ensuring portfolios behave as advertised – that they are differentiated and disciplined. The ‘plus one’ encompasses our client-focused activities, including investment team accessibility, client service, and educational content. This holistic approach helps advisors and investors feel confident in our funds, strategies, and market outlook.”
From those forums, a common theme arose that has plagued the industry for years: the amount of paper required in transactions.
“We have a motto to ‘axe the fax,’ and we saw this opportunity where members didn’t want their staff going into the office, but there are still physical cheques going back and forth,” Adams explains. “We put in place, in just six months, Ad-Hoc Money Movement [A$M]. We responded to the industry and are in the process of replacing cheques, which I think is awesome. We launched in January and have seen so much volume. We think ultimately we are keeping people healthier by not having to travel into the office.”
Another recent initiative Adams has been happy to spearhead tackles an issue the entire world is seeking to address: racial justice.
While she’s proud of the strides Fundserv made in 2020, Adams acknowledges that it was a challenging time as a leader. Not only did she have to ensure Fundserv kept running efficiently as her team transitioned to working from home, but she was also filled with concern for her team members.
“I just worried about our employees, their mental health and if they would be OK,” Adams says. “I like to see people, so I set up one-on-ones just to connect with them.
Moving forward, Adams says Fundserv’s goals remain aligned with those of its members, and her team will continue listening and understanding what members need so the organization can evolve accordingly. She adds that she wants Fundserv to be so good at providing a secure and reliable service that members forget it’s there – and she wants the company to continue to inspire change in the industry.
“It is sad that it took a pandemic to recog-nize the cheque issue and solve it,” Adams says. “What we will do in the future is root out those things in the industry and not wait for a pandemic to ignite change. There is no reason we can’t change. Change, like auto-mation, will accelerate from now, and we’ll do our part to keep it going.”
Spotlight
During her time at Fundserv, Adams has had the opportunity to work on projects that have left an impact on both her and the financial industry. One of the ones she’s most proud of began this past year as a result of the COVID-19 pandemic.
“Serving the purpose we do, as this technology platform that connects people in the industry, one of the most exciting things has been listening to our members and responding with solutions,” Adams says.
“Early in the lockdown, we started Industry Forums, a space where members could connect on resolutions to common issues caused by the changing work environment.”
Company Profile
Years of Experience
Tenure at current position
BAsed In
Fast Fact
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Share
Share
Accolades
Media
Milestones
Curabitur feugiat eget leo id tempus. Maecenas commodo, nibh at ultricies pulvinar, ipsum erat porta metus, et tempus justo tellus euismod dolor.
2011
Enhancing rational decision-making in wealth management
Karen Adams has had a remarkable journey to her current role as CEO of Fundserv. Originally from Toronto, Adams earned a bachelor’s degree in mathematics and economics at Queens University, followed by an MBA in international finance at the University of British Columbia. After graduating, she set off across the globe, holding various positions with HSBC that took her to London, Dubai, Hong Kong, Beijing, Shanghai, Seoul and Mumbai.
That global experience gave Adams a unique perspective, prompting her to develop a leadership style that’s based on developing relationships with each individual, listening and understanding to help them reach their potential. That approach goes well beyond her own team, allowing Fundserv to succeed in creating solutions for its members.
“Having worked in many different countries, people ask if I am an expert in multicultural leadership,” Adams says. “I always say there is no such thing because that assumes you manage people based on their background. I have learned that people all want the same things: to develop our careers, give our kids a good future, etc. When she returned to Canada learned that people all
In addition to manufacturing a reliable rate of return in their investment strategies, Vanneman and his team are dedicated to partnering with advisors by providing quality content and portfolio manager access, which is essential for fostering confidence and clarity in investment decisions.
In the current market environment, Vanneman finds wealth management firms need to remain dynamic in actively managing portfolios. Vanneman explains that Orion’s investment strategies fall into two main categories: direct indexing and discretionary, actively managed portfolios. “Our discretionary portfolios are dynamic and active, adjusting based on market conditions and risk characteristics,” he says. Orion uses a wide range of diversifying asset classes, including alternatives, real assets, and global credit, which differentiates them from other multi-asset managers.
Vanneman further indicates that at Orion Wealth Management, the team conducts thorough institutional due diligence. Risk management is a key component of Orion strategies. As a result, the portfolios maintain stable risk characteristics over time, ensuring dependable performance.
The Orion investment team studies and incorporates behavioral finance principles to promote good decision hygiene and sound decision-making practices.
“Another key aspect is what I call ‘X plus one,’” Vanneman says. The X represents our commitment to ensuring portfolios behave as advertised – that they are differentiated and disciplined. The ‘plus one’ encompasses our client-focused activities, including investment team accessibility, client service, and educational content. This holistic approach helps advisors and investors feel confident in our funds, strategies, and market outlook.”
From those forums, a common theme arose that has plagued the industry for years: the amount of paper required in transactions.
“We have a motto to ‘axe the fax,’ and we saw this opportunity where members didn’t want their staff going into the office, but there are still physical cheques going back and forth,” Adams explains. “We put in place, in just six months, Ad-Hoc Money Movement [A$M]. We responded to the industry and are in the process of replacing cheques, which I think is awesome. We launched in January and have seen so much volume. We think ultimately we are keeping people healthier by not having to travel into the office.”
While she’s proud of the strides Fundserv made in 2020, Adams acknowledges that it was a challenging time as a leader. Not only did she have to ensure Fundserv kept running efficiently as her team transitioned to working from home, but she was also filled with concern for her team members.
“I just worried about our employees, their mental health and if they would be OK,” Adams says. “I like to see people, so I set up one-on-ones just to connect with them.
Moving forward, Adams says Fundserv’s goals remain aligned with those of its members, and her team will continue listening and understanding what members need so the organization can evolve accordingly. She adds that she wants Fundserv to be so good at providing a secure and reliable service that members forget it’s there – and she wants the company to continue to inspire change in the industry.
“It is sad that it took a pandemic to recog-nize the cheque issue and solve it,” Adams says. “What we will do in the future is root out those things in the industry and not wait for a pandemic to ignite change. There is no reason we can’t change. Change, like auto-mation, will accelerate from now, and we’ll do our part to keep it going.”
Spotlight
Orion has undergone significant transformation since Vanneman joined in 2012. Initially part of CLS Investments, known for its innovative ETF strategies, Orion has since acquired multiple firms, including FTJ FundChoice, HiddenLevers, Brinker Capital, TownSquare, and Redtail. Orion now operates with two primary divisions, technology and wealth management, with Vanneman leading the latter’s investment operations.
Inspired by a friend’s mother who suggested he should be an investment manager, Vanneman started reading investment books and pursued an emphasis on investments at Babson College. A pivotal moment was meeting pioneering investor Sir John Templeton, whose story deeply impressed Vanneman. This interest evolved into a career in wealth management, with Vanneman working in Boston for many years before joining Orion.
Vanneman says, “When we communicate our story with confidence, consistency, and transparency, it enables advisors to convey the same clarity to their clients. Ultimately, it’s about ensuring investors stay invested and diversified. The focus is on enhancing the investor experience. “Let me share a quick story that illustrates this point. About ten years ago, I was on a personal trip at a cattle ranch near the Black Hills in South Dakota. I struck up a conversation with a retired pastor, and as we talked, he realized I helped manage money and communications for a registered investment advisor in Boston.
“It turned out he was a client of that firm. His face lit up with a big smile, and he gave me a hug, expressing his gratitude. He said his positive investing experience with our firm enabled him to afford this particular trip. He appreciated the consistent support from his advisor, which helped him stay the course through good times and bad. This encounter was unique, especially happening on a cattle ranch in South Dakota, but it underscores the importance of a reliable and supportive investing experience.”
Company Profile
Years of Experience
Tenure at current position
BAsed In
Fast Facts
Read on
2012
2017
2018
2018
2019
2019
Served as the chief investment officer and managing director for a multi-billion-dollar RIA in the greater Boston area
2012
Published Higher Calling: A Guide to Helping Investors Achieve Their Goals
2017
Received Wealth Management’s ETF Strategist of the Year Award
2018
Named President of CLS Investments
2018
Named ETF.com's Investor of the Year
2019
Named Chief Investment Officer of Orion
2019
Milestones
Investment philosophy and principles
Trends and opportunities
Trends and opportunities
Investment philosophy and principles
Published June 17, 2024
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Orion wealth management: innovation and strategy
Real assets could play a vital role, especially if inflation remains higher and more volatile than in recent decades. Given the current market environment, these seem like viable opportunities. However, many investors currently lack exposure to real assets and alternatives – areas that could enhance risk-adjusted performance during economic and market volatility.
With lower investment management fees than in years past, active management also appears to be at less of a disadvantage now, more so with reduced average cash balances (minimizing cash drag), and significantly lower internal transaction costs. These factors diminish some of the long-term disadvantages of active management. Alternatives present another significant opportunity. Many multi-asset portfolios that advisors build have much lower weights in alternatives compared to institutional investors. Vanneman expects the trend toward higher alternative allocations to continue. To support this, Orion has entered a key partnership to offer more alternatives and have fortified due diligence in this area.
Real assets and alternatives: the prospects ahead
Fostering collaboration between different groups within the investment team encourages exposure to diverse perspectives and lines of thinking. Additionally, Vanneman strongly advocates for analysts and portfolio managers to communicate and write as much as possible.
“This not only improves their ability to articulate ideas clearly, but also helps them think through issues more thoroughly. Moreover, it enhances investment decision-making by reinforcing the principle that teaching is often the best way to deepen one’s own understanding,” Vanneman asserts.
Continuous learning within investment teams
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Orion wealth management: innovation and strategy
Looking ahead, Vanneman discusses several key trends and innovations at Orion. Behavioral finance tools like Pulse Check, 3D RTQ, and BeFi20 help advisors understand clients’ values, risk tolerance, and financial personality, enhancing the advisor-client relationship.
“Direct indexing is also a very hot topic in the industry right now, and for good reason,” Vanneman states. Orion is expanding resources and leveraging experienced talent in this area, particularly with its custom indexing solutions.
Active management, which has faced challenges over the past 15 years, could see a resurgence, with opportunities for globally diversified multi-asset portfolios to excel once again. Orion aims to stay disciplined and dynamic, ready to seize these opportunities. “Could we finally be entering a period like after the dot-com era, when actively managed, globally diversified multi-asset portfolios started to excel again?” Vanneman wonders.
A promising indicator for active management, according to Vanneman, is the potential outperformance of smaller companies. Since the year 2000, small caps have typically traded at a 20 percent discount to the market, but now they’re trading at a 50 percent discount. Additionally, non-benchmark items such as non-US equities are also at significant discounts compared to the US market.
Real assets and alternatives: the prospects ahead
Continuous learning within investment teams
Real assets could play a vital role, especially if inflation remains higher and more volatile than in recent decades. Given the current market environment, these seem like viable opportunities. However, many investors currently lack exposure to real assets and alternatives – areas that could enhance risk-adjusted performance during economic and market volatility.
With lower investment management fees than in years past, active management also appears to be at less of a disadvantage now, more so with reduced average cash balances (minimizing cash drag), and significantly lower internal transaction costs. These factors diminish some of the long-term disadvantages of active management. Alternatives present another significant opportunity. Many multi-asset portfolios that advisors build have much lower weights in alternatives compared to institutional investors. Vanneman expects the trend toward higher alternative allocations to continue. To support this, Orion has entered a key partnership to offer more alternatives and have fortified due diligence in this area.
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Use of editorial content without permission is strictly prohibited | All rights reserved
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About
Orion wealth management: innovation and strategy
Trends and opportunities
Real assets and alternatives: the prospects ahead
Fostering collaboration between different groups within the investment team encourages exposure to diverse perspectives and lines of thinking. Additionally, Vanneman strongly advocates for analysts and portfolio managers to communicate and write as much as possible. “This not only improves their ability to articulate ideas clearly, but also helps them think through issues more thoroughly. Moreover, it enhances investment decision-making by reinforcing the principle that teaching is often the best way to deepen one’s own understanding,” Vanneman asserts.
Continuous learning within investment teams
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