iCapital Portfolio Intelligence is a cloud-based application that uses machine learning to deliver powerful analytics across both traditional and alternative investments. Portfolio Intelligence helps users deconstruct and understand underlying risk and return drivers through an intuitive, client-friendly interface. Users can build sophisticated multi-asset portfolios, generate proposals and reporting, and bring meaningful, differentiated insights to the investment conversation.
iCapital Portfolio Intelligence currently supports traditional assets, such as stocks and the entire global traded investment universe of mutual funds, ETFs, and closed-end funds. iCapital also supports ‘40-Act liquid alternative funds as well as a curated selection of hedge funds and private capital funds.
iCapital Portfolio Intelligence’s powerful insights can bring clarity across several use cases:
For Advisors: evaluate a broader range of investment opportunities including alternative assets to make more informed allocation decisions, while easily communicating the value-add and impact on their clients’ portfolios.
For CIOs and Researchers: uncover the risk and return drivers for any asset or portfolio and construct sophisticated multi-asset portfolios.
For Asset Managers: help advisors understand (and easily communicate) the value and impact of your investment products to their clients.
With iCapital Portfolio Intelligence, users will have access to comprehensive factor analysis across equity, fixed income, and alternative assets to better understand the underlying risk and return drivers. iCapital Portfolio Intelligence also allows users to perform scenario analyses to simulate performance and to view traditional analytics, such as correlation matrices or the growth of ten thousand chart.
Factors represent co-movement of a broad set of assets. Decades of research and application by academia and institutional investors have shown the importance of factor analysis in the portfolio construction process. Consideration of factor exposures allows portfolio managers to identify the sources of returns and tailor a portfolio’s systematic risk to meet client objectives and constraints.
iCapital’s goal is to make sophisticated analytics accessible to all investment professionals. Users can select factors ranging from basic equity, to fixed income, to alternatives. The intuitive visualizations and rich supporting information will make it easy to not only understand factor analysis, but also to easily articulate it to clients or internal stakeholders.
For users who are primarily focused on understanding risks and estimating potential outcomes, Portfolio Intelligence also offers rich traditional analytics derived from factor analysis.
iCapital’s factor model uses methodologies grounded in academic research that have been used by large institutional investors for decades. It’s implemented through advanced Machine Learning to ensure robustness and depth of analysis. A detailed technical document can be provided upon request.
Scenario analysis is a useful tool for estimating how an asset or portfolio would perform in different market conditions. It is particularly valuable for assets with a short lifetime; for example allowing users to peek into their potential drawdowns during 2000 Tech Wreck or 2008 Global Financial Crisis. With iCapital Portfolio Intelligence, users can run powerful scenario analysis with the click of a button.
Besides evaluating or comparing assets on a standalone basis, users can also compare portfolios by reviewing all the available analytics (e.g.;. factor exposures, scenario analyses), and contrasting before/after changes.
There are a lot of portfolio analytics solutions out there. How is iCapital Portfolio Intelligence different?
Most analytics applications today are built to only handle traditional investments. Those with analytics built for alternative investments are often either too complex to use (usually built for institutions) or too simple and basic.
iCapital Portfolio Intelligence is built with iCapital’s expertise and depth of knowledge in the high-net-worth alternative investment space. Our tool gives users the ability to not only access traditional investments, but to also use the same analytics framework to effectively incorporate alternatives and other asset classes in a portfolio.
There are primarily three ways to create a portfolio in iCapital Portfolio Intelligence:
1. Leverage Portfolio Intelligence’s integration with today’s leading portfolio management tools to import a portfolio. Users just need to log in and select the portfolio they want from their account.
2. Users can create a portfolio directly with iCapital Portfolio Intelligence’s intuitive interface.
3. Users can upload a CSV file with asset identifiers.
Yes, users can analyze a specific asset, a sleeve, or a whole portfolio.
iCapital Portfolio Intelligence enables users to create any asset for a comprehensive portfolio review. Users can provide the asset’s basic information and, at a minimum, the monthly return data. Users can also assign an index or another asset as proxy for their asset.
Yes, Portfolio Intelligence allows users to easily share portfolios or their own private assets with others and grant different permission levels.
Yes, users can create and export PDF reports for both assets and portfolios.