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Available today to over 350,000 US financial professionals, iCapital Architect further enhances iCapital’s technology suite
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Intuitive portfolio construction tool on iCapital Marketplace empowers advisors to seamlessly incorporate alternative and structured investments into traditional public market portfolios.
iCapital, the global fintech platform driving the world’s alternative investment marketplace for the wealth management industry, today announces its groundbreaking portfolio construction tool, Architect, is available on iCapital Marketplace. With the launch, more than 350,000 US financial advisors can access Architect – which combines a user-friendly interface with sophisticated analytics – to evaluate alternatives and structured investments alongside traditional assets and seamlessly design portfolios that align with their clients’ return objectives and risk profiles.
Architect’s advanced analytics and visualizations allow advisors to evaluate the impact of adding alternatives – such as private equity, private credit, hedge funds, private real estate funds – and structured investments, to an existing portfolio that includes traditional investments, including equity, fixed income, ETFs, and mutual funds. Advisors can also fold in custom assets and run them through Architect’s models, allowing advisors to evaluate non-traditional client assets. The new tool compares scenarios and simulates historical performance; identifies macroeconomic portfolio return drivers; and evaluates the projected portfolio against a client’s investment objectives.
“In building out the industry operating system for investing in private markets, we’ve been very thoughtful about how to give advisors an enhanced set of tools to supplement the ones they already have in the 60/40 world,” said Lawrence Calcano, Chairman and CEO of iCapital. “Architect is a real-time tool for advisors to explore allocations to alternatives, support diversification goals, and ultimately build holistic portfolios that offer enhanced return and income opportunities.”
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Today’s launch on iCapital Marketplace follows a highly successful six-month beta phase with over 300 wealth managers, including more than 150 RIA firms. Additionally, iCapital announced the strategic relationship with Morningstar last month, and through this integration once completed, more than 170,000 advisors can subscribe to Architect through Morningstar Advisor WorkstationSM.
“Our goal is to make alternative assets available to all for whom the assets are suitable and appropriate because we believe that advisors and clients can benefit from exposure to these asset classes. But expanding access requires a comprehensive platform that optimizes the process with the right technology, and a richer set of portfolio analytics tools and data. Architect is an important part of that equation, and helps advisors analyze and explain how the inclusion of alternative strategies can diversify and strengthen client portfolios” Mr. Calcano added.
Advisors who took part in the beta phase said it helped elevate the investment experience and better align with client objects. Analysis allowed advisors to evaluate a potential asset allocation in terms of the opportunity for returns, liquidity, ability to protect from downside, the simplicity or complexity of the asset’s structure, along with a historical evaluation of asset performance.
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