Arch Indices partners with Quorus to offer Variance Optimized Indexing (VOI) indices in personalized, tax-managed accounts

Arch Indices and Quorus announce new partnership that will see Quorus offer Arch's range of Variance Optimized Indexing (VOI) indices in personalized, tax-managed accounts. Wealth managers can now utilize Arch's innovative indices while also generating tax-alpha and personalizing accounts to meet client preferences.

NEW YORK, Dec. 19, 2023 /PRNewswire-PRWeb/ -- Arch Indices has partnered with Quorus to offer its range of Variance Optimized Indexing (VOI) indices in personalized, tax-managed accounts. Through this partnership, wealth managers can utilize Arch's innovative indices while also generating tax-alpha and personalizing accounts to meet clients' unique preferences.

Arch Indices VOI Core Absolute Income Index is the first Arch index offered through Quorus. The index consists of dividend stocks and bond ETFs weighted with the goal of maximizing income while minimizing volatility.

"Being able to combine our optimized indices with the potential benefits of tax-loss harvesting inherent in the Quorus approach makes this an ideal pairing and one we are very excited to discuss with the full range of financial advisors." - Yang Tang, Arch Indices CEO.

"We are excited to expand access to our innovative portfolio construction process through this partnership with Quorus," said Yang Tang, Arch Indices CEO. "We believe that traditional passive indexing approaches do not meet the needs of today's investors, and the Quorus team is similarly focused on providing solutions for advisors that go well beyond traditional direct indexing. Being able to combine our optimized indices with the potential benefits of tax-loss harvesting inherent in the Quorus approach makes this an ideal pairing and one we are very excited to discuss with the full range of financial advisors."

"At their core, traditional means of weighting passive portfolios, whether by market capitalization, equal weight, inverse rank, and so on, are arbitrary in their approach and in the exposures they provide. Investors are essentially given baskets of assets selected because they fit a certain description, with little to no consideration given to how the assets in that basket may interact with, or counteract, one another," continued Tang. "We have built a far more dynamic approach, and through Quorus we are able to further enhance our efforts by offering advisors a customized, tax-advantaged way to put this more discerning approach to work."

"We are excited to partner with Yang, Jacob, and the team at Arch." said John Hill, CFA, Quorus CEO. "The Arch team has developed a thoughtful series of strategies that capture something entirely new when it comes to portfolio construction and optimization, and we ensure that any advisor who uses these strategies will also gain the benefits of our next-gen approach to direct indexing."

Arch's Variance Optimized Indexing (VOI) is purpose-built to provide better outcomes for clients.

Arch pioneered the VOI methodology, which produces an optimal weighting of assets to maximize the index goal while minimizing volatility. This framework for portfolio construction takes into account both individual asset volatility and cross-asset covariance. The approach is expected to reduce overall portfolio risk and volatility.

Arch Indices VOI Core Absolute Income Index seeks to benefit from the capital appreciation potential of quality dividend paying stocks, combined with the potential for volatility reduction provided by fixed income ETFs. Minimizing volatility provides a key source of liquidity in the event of an equity risk-off scenario through reduced drawdowns. The resulting portfolio is designed to deliver a goal-focused income solution with effective volatility reduction.

Dynamically managed investment strategies benefit from Quorus' specialized tax management.

Quorus, co-founded by John Hill, who was previously Head of Direct Indexing for Vanguard, partners with asset managers to offer their investment strategies in customized investment accounts. The firm's process starts with an asset manager's strategies and builds a custom tax management program for each strategy. This process allows Quorus to generate tax alpha for investment accounts while limiting the potential impact on an asset manager's investment alpha.

Once a program is designed, Quorus' cloud-based portfolio management platform uses a proprietary tax-aware portfolio optimization process to implement tax-loss harvesting, capital gains deferral, capital gains budgeting, and tax-aware account transitions. This technology, combined with Quorus' experienced team of portfolio managers, provides asset managers with a sophisticated, scalable means of offering more personalized, tax-efficient investment accounts for advisors and their clients.

All Arch indices are available on the Schwab Managed Account Marketplace platform through Quorus.

About Arch Indices

Arch Indices was founded with the mission to empower all investors to achieve their financial goals through the next generation of dynamic index solutions. The firm is the creator of Variance Optimized Indexing (VOI), a proprietary methodology designed to optimize the weightings of assets in a portfolio. VOI weights assets to maximize the portfolio goal while minimizing volatility by taking into account three factors: 1) the goal to maximize; 2) asset volatility; and 3) asset correlation to the rest of the portfolio. Arch Indices uses VOI to construct model portfolios, custom index solutions, and the VWI ETF. To learn more, please visit www.archindices.com.

About Quorus

Quorus Inc. ("Quorus") is an investment adviser registered with the Securities and Exchange Commission. We specialize in designing and implementing custom, tax-managed investment accounts for asset managers and financial advisors. Our platform combines scalable, cloud-based technology with an experienced portfolio management team to deliver the best possible outcomes for our clients. For more information, please visit www.quorus.io

Disclosures

All investing is subject to risk, including possible loss of principal.

Quorus Inc. ("Quorus," "we," or "our") is an investment adviser registered with the Securities and Exchange Commission ("SEC"). Registration does not imply a certain level of skill or training.

The material presented is for informational purposes only and should not be construed as investment advice. It is not a recommendation of, or an offer to sell or solicitation of an offer to buy, any particular security, strategy, or investment product. Investing in securities involves risks, including the potential loss of money, and past performance does not guarantee future results. Historical returns, expected returns, and probability projections are provided for informational and illustrative purposes and may not reflect actual future performance. Nothing in these materials should be construed as personalized investment advice, which can only be provided in one-on-one communications.

Tax-loss harvesting and tax-aware management seek to improve after-tax outcomes but do not guarantee any tax result, and their effect depends on a client's individual circumstances, including tax rates, holding periods, and other activity in the client's accounts. Quorus does not provide tax or legal advice. Clients should consult their own tax and legal advisers.

This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or an investment strategy, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Financial professionals should independently evaluate the risks associated with products or services and exercise independent judgment with respect to their clients.

Arch Indices is an independent third party and a business partner of Quorus Inc. Statements describing the partnership relate to a commercial arrangement from which both firms expect to benefit economically, and should not be read as an endorsement by a disinterested party or as an indication of the experience of any Quorus client. Index and methodology information published by Arch Indices, including any description of Variance Optimized Indexing, is its own and has not been independently verified by Quorus. Indexes are not directly investable, and index results do not reflect advisory fees, trading costs, or taxes. References to any exchange-traded fund are for identification only and are not a recommendation to buy or sell that fund.

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