iCapital launches new portfolio construction tool
A month after launching a new digital marketplace for alternative investments, iCapital is rolling out a new tool to help advisors incorporate alts and structured products into client portfolios.
On Wednesday, the fintech company, which services $159 billion in global client assets and is used by more than 100,000 financial advisors, announced the public launch of Architect, a portfolio construction software for financial advisors. Architect provides historical performance and risk factor analysis to show advisors how alts can fit alongside traditional asset classes and impact client outcomes.
While portfolio management is an already crowded corner of the advisor fintech ecosystem, many of the top products fall short when it comes to incorporating alternatives, iCapital chairman and CEO Lawrence Calcano said in a statement.
“Advisors have long expressed a need for more comprehensive tools to effectively evaluate the inclusion of alternatives and structured investments in client portfolios,” Calcano said.
Though Architect can incorporate “vanilla assets” as well as alternatives, iCapital isn’t necessarily looking to replace the portfolio management software firms already use, added Jason Broder, head of iCapital Solutions. Architect is available at launch within iCapital’s digital user experience for advisors and the company plans to integrate it with popular portfolio management, proposal generation and reporting tools.
Architect is already feeding data on alternatives into Envestnet’s proposal generation tool, Broder told InvestmentNews.
“Part of our strategy is to work really closely with these other large platforms,” he said. “We don’t want advisors to change their entire workflow and come to something new unless they
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