Evergreen or perpetual funds, often referred to as “semi-liquid” funds have in recent years become integral elements in the push to broaden access to alternative investments. These funds – including…
Specified Outcomes in a Predetermined Timeframe
Defined outcome solutions empower advisors to build investments with pre-defined return and risk profiles. Available as individual structured notes, market-linked CDs, yield-based separately managed accounts (SMAs) and ’40-Act funds, these solutions include features such as principal protection, increased yield, and enhanced return, allowing for use across a wide range of investors and investment objectives.
Menu of Defined Outcome Solutions
Structured Investments
iCapital works with the largest assortment of investment grade banks to create a wide range of customizable structured notes and certificates of deposit designed to help financial advisors customize investments to best align with market views and meet specific needs in client portfolios.
Separately Managed Accounts (SMAs)
Our defined outcome strategies SMAs provide professionally managed, diversified exposure to income-focused structured notes without requiring single product purchases or life cycle management. This allows advisors to better scale structured notes across a wider array of clients without worrying about the investment and operational complexities that come with individual notes.
m+ funds
Our defined outcome ’40-Act funds provide daily liquidity at NAV and are offered on both a monthly and customized basis without credit risk. These funds can provide enhanced upside participation, buffered downside, or partial or full principal protection at maturity with greater certainty of investment results.
Compare Defined Outcome Solutions
Structured Investments
SMAs
m+ funds (UITs)
Investment Minimum
$1,000
$100,000
None
Portfolio Management
NA
Active
Passive
Fiduciary
No
Yes
Yes
Term
Defined maturity
Continuous
Defined maturity
Liquidity
Secondary market provided by issuing bank or third-party provider.
Secondary market provided by issuing bank or third-party provider.
Daily at NAV. Not exchange listed.
Transparency of Fees & Assets
Low
High
High
Market Risk
Yes
Yes
Yes
Issuer Credit Risk
Yes
Yes, but diversified among multiple issuers.
No
Publicly Available NAVs or Values
No*
No*
Yes
* Structured notes and SMAs provide publicly available secondary values that appear daily on client statements.
Structured Investments
Investment Minimum
$1,000
Portfolio Management
NA
Fiduciary
No
Term
Defined maturity
Liquidity
Secondary market provided by issuing bank or third-party provider.
Transparency of Fees & Assets
Low
Market Risk
Yes
Issuer Credit Risk
Yes
Publicly Available NAVs or Values
No*
* Structured notes and SMAs provide publicly available secondary values that appear daily on client statements.
SMAs
Investment Minimum
$100,000
Portfolio Management
Active
Fiduciary
Yes
Term
Continuous
Liquidity
Secondary market provided by issuing bank or third-party provider.
Transparency of Fees & Assets
High
Market Risk
Yes
Issuer Credit Risk
Yes, but diversified among multiple issuers.
Publicly Available NAVs or Values
No*
* Structured notes and SMAs provide publicly available secondary values that appear daily on client statements.
m+ funds (UITs)
Investment Minimum
None
Portfolio Management
Passive
Fiduciary
Yes
Term
Defined maturity
Liquidity
Daily at NAV. Not exchange listed.
Transparency of Fees & Assets
High
Market Risk
Yes
Issuer Credit Risk
No
Publicly Available NAVs or Values
Yes
* Structured notes and SMAs provide publicly available secondary values that appear daily on client statements.
To Learn More About iCapital’s Defined Outcome Solutions
Powering the Global Alternatives Marketplace
The world’s premier asset management firms, banks and wirehouses accelerate their alternative distribution efforts with iCapital’s digital technology.
Powering Financial Advisors’ Access to Alternatives
Many of the industry’s top fund managers rely on iCapital’s distribution to scale their fundraising on our Flagship Platform.
Powering Wealth Management’s Growth
Leveraging iCapital’s technology platform helps top wealth managers deliver high-quality alternatives investment opportunities to their clients with efficiency and ease.
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Securities products and services are offered by iCapital Markets LLC, a registered broker-dealer, member FINRA and SIPC, and an affiliate of iCapital, Inc. These registrations and memberships in no way imply that the SEC, FINRA, or SIPC have endorsed any of the entities, products, or services discussed herein. Alaia Capital LLC and m+ funds are affiliated with iCapital Markets LLC. “iCapital” and “iCapital Network” are registered trademarks of Institutional Capital Network, Inc.
