iCapital Launches Portfolio Construction Tool
iCapital, a global fintech firm, has introduced a new portfolio construction tool for its 350,000 advisors who utilize the iCapital Marketplace platform.
Architect enables advisors to assess the impact of incorporating alternatives such as private equity, private credit, hedge funds, private real estate funds, and structured investments into an existing portfolio that includes traditional investments such as equity, fixed income, ETFs, and mutual funds.
Advisors can also incorporate bespoke assets and run them via Architect’s models, enabling them to assess non-traditional assets. The tool examines and simulates historical performance, detects macroeconomic portfolio return drivers, and assesses the forecast portfolio against the 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.
The tool was first made available last July as part of a six-month beta test involving 300 wealth managers, including 150 RIAs. Last month, iCapital announced a relationship with Morningstar, allowing over 170,000 advisors to subscribe to Architect via Morningstar Advisor Workstation.
Advisors that participated in the beta phase reported that it improved the investment experience and helped them better align with customer objectives, according to iCapital.
