Taiko with Chris Horvath | E329

Providing an Online Outsource Chief Investment Officer.

In this episode of Fintech Impact, Jason interviews Chris Horvath, the Managing Director of Taiko Advisor. Taiko Advisor, powered by its parent company Taiber Kosmala and Associates, leverages institutional research and technology to offer bespoke investment solutions through an OCIO (Outsourced Chief Investment Officer) model. The conversation delves into the establishment of Taiko, its value proposition for financial advisors, and the nuanced details of operating a tech-enabled OCIO in today's financial environment.

Episode Highlights:

  • 00:10: Jason introduces the episode and welcomes Chris from Taiko Advisor, setting the stage for a conversation about how Taiko combines traditional investment consulting with modern technology to create customized investment platforms for financial advisors.

  • 01:02: Chris provides an overview of Taiko's origins and its relationship with parent company Taiber Kosmala and Associates. He outlines the founders' backgrounds in institutional consulting and their vision for launching an OCIO service tailored to financial advisors, emphasizing the blend of institutional heritage with innovative technology.

  • 02:00: The discussion shifts to the concept of an Outsourced Chief Investment Officer (OCIO). Chris explains how an OCIO functions as an extension of a client's investment team, offering a range of services from asset allocation to manager selection, and highlights the growing adoption of the OCIO model among RIAs and wealth management firms.

  • 02:52: Chris details the day-to-day interactions advisors can expect when engaging with Taiko's platform. The conversation covers the customization of services Taiko offers, emphasizing the a la carte approach that allows advisors to choose how best to integrate Taiko into their practices.

  • 03:41: Delving deeper, Jason probes into the partnership dynamics between Taiko and investment managers, exploring how Taiko sources managers through an institutional lens, and the due diligence involved in these partnerships to ensure clients receive competitive pricing and access to unique investment opportunities.

  • 04:34: Chris walks through the process of custom investment program construction with Taiko, explaining how the initial setup involves identifying gaps in advisors' existing investment programs and sourcing or creating strategies to fill these gaps.

  • 05:35: The narrative progresses to how Taiko implements these tailor-made investment programs. Chris outlines how strategies are built out within the advisors' systems and how Taiko's unique portal facilitates direct communication and trading requests between advisors and Taiko's back-office team.

  • 06:16: Jason and Chris discuss Taiko's careful selection of third-party managers and the meticulous due diligence process, underscoring the importance of direct interactions with portfolio managers to maintain high-quality investment options for clients.

  • 07:07: Transitioning to the technology and discovery phase, Chris emphasizes the importance of understanding each advisory firm's unique setup and needs, discussing how Taiko customizes its services to align with clients' existing technologies and processes.

  • 08:54: In discussing investment program implementation, Chris details the practical steps of executing and managing client portfolios through Taiko's platform, highlighting how Taiko facilitates trading, rebalancing, and portfolio maintenance.

  • 09:48: The conversation wraps up with insights on the ongoing support Taiko provides, including quarterly investment committee meetings that offer in-depth reviews of model portfolios, manager performance, and relevant market observations.

  • 11:23: Chris shares feedback from advisors who have integrated Taiko into their businesses, focusing on the value of time saved through outsourcing and the new opportunities advisors find in institutional business acquisition.

  • 12:56: Looking to the future, Chris speaks about Taiko's plans to expand its offerings, particularly within the alternative investment space, leveraging the team's institutional experience to source compelling private equity, credit, and real assets opportunities.

  • 14:40: The episode closes with Chris expressing his wish for more young professionals to enter the industry and his passion for empowering advisors through the Taiko platform.

Key Takeaways

  • Taiko Advisor offers a unique value proposition for financial advisors by providing institutional-grade investment consulting combined with scalable technological solutions.

  • The OCIO model enables advisors to outsource complex investment decisions, allowing them to focus on client relationships and business growth.

  • Personalization and close partnership with investment managers are key to Taiko's approach, ensuring advisors can offer competitive and bespoke investment solutions.

  • Continuous innovation, particularly in the realm of alternative investments, reflects Taiko's commitment to addressing evolving market demands and advisor needs.

Tweetable Quotes:

  • "Leveraging institutional heritage with innovative technology allows us to serve advisors in a scalable format." - Chris

  • "Our aim is to empower advisors to grow their business and serve their clients better." - Chris

  • "Introducing scale to your business doesn't mean losing personalization." - Chris

Resources Mentioned:

Fintech ImpactJason PereiraFintech