Designed to serve as your primary source for navigating the world of alternative investments.
This month, we launched Architect on iCapital Marketplace, expanding access to more than 350,000 U.S. financial advisors.
Architect is a first-of-its-kind portfolio construction tool that empowers financial advisors to build robust, personalized portfolios incorporating alternatives and structured investments with traditional asset classes.
Driven by powerful analytics and a user-friendly interface, Architect is designed from the ground up to bring transparency and a more informed approach to the alternatives and structured investments process.
With Architect, advisors can create new asset allocations, visualize key risk drivers, compare scenarios, simulate historical performance, and design outcome-oriented portfolios that align with their clients’ return objectives and risk profiles.
Start your free trial now or contact the Architect team to schedule a demo.
Thank you for your continued partnership and support.
Dan Vene
Co-Founder and Managing Partner,
Head of Investment Solutions
CHART OF THE MONTH
Source: iCapital, based on quarterly index data from Preqin, Cliffwater, MSCI, Bloomberg, NCREIF and HFRI, as of Sept. 30, 2023. For illustrative purposes only. Past performance is not indicative of future results. Future results are not guaranteed. Alts portfolio comprised of 40% private equity (proxied by Preqin’s PE index), 40% private credit (proxied by Cliffwater Direct Lending Index), 10% real estate (proxied by a modified NCREIF-ODCE (Open End Diversified Core Equity) Index, and 10% hedge funds (proxied by HFRI Fund Weighted Composite Index). 60% Equity/40% Bond Portfolio comprised of 60% public equities (proxied by MSCI ACWI (All Country World Index)) and 40% bonds (proxied by Bloomberg US Aggregate Bond Index). 48% Equity/32% Bond/20% Alts Model Portfolio comprised of 48% public equities (proxied by MSCI ACWI (All Country World Index)), 32% bonds (proxied by Bloomberg US Aggregate Bond Index), and 20% alternative investments, including 8% private equity, 8% private credit 2% real estate, and 2% hedge funds (proxied by the respective indices in the Alts portfolio). For a detailed methodology, please see Trading Places: Mapping the Impact of Alts in a Traditional Portfolio.
MONTHLY MARKET ROUNDUP
IN CASE YOU MISSED IT
MONTHLY ALTS PULSE: EPISODE 7
MARKET PULSE
NEW AT iCAPITAL
IMPORTANT INFORMATION
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ALTERNATIVE INVESTMENTS ARE CONSIDERED COMPLEX PRODUCTS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. Prospective investors should be aware that an investment in an alternative investment is speculative and involves a high degree of risk. Alternative Investments often engage in leveraging and other speculative investment practices that may increase the risk of investment loss; can be highly illiquid; may not be required to provide periodic pricing or valuation information to investors; may involve complex tax structures and delays in distributing important tax information; are not subject to the same regulatory requirements as mutual funds; and often charge high fees. There is no guarantee that an alternative investment will implement its investment strategy and/or achieve its objectives, generate profits, or avoid loss. An investment should only be considered by sophisticated investors who can afford to lose all or a substantial amount of their investment.
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Index Disclaimers: The MSCI ACWI (All Country World Index) is designed to represent performance of the full opportunity set of large- and mid-cap stocks across 23 developed and 24 emerging markets. The Bloomberg US Aggregate Bond Index, which is a broad base, market capitalization-weighted bond market index. The index includes Treasury securities, government agency bonds, mortgage-backed bonds, corporate bonds, and several foreign bonds traded in the U.S. Preqin’s PE Index consists of funds within Preqin’s database that are categorized within one of the following sub strategies: Balanced, Buyout, Co-Investments, Direct Secondaries, Fund of Funds, Growth, Hybrid, PIPE, Secondaries, Turnaround, and Venture Capital. The Cliffwater Direct Lending Index (CDLI) is an asset-weighted index of over 11,000 directly originated middle market loans totaling $264B. It seeks to measure the unlevered, gross of fee performance of U.S. middle market corporate loans, as represented by the asset-weighted performance of the underlying assets of exchange-traded and unlisted BDCs, subject to certain eligibility requirements. The modified NCREIF-ODCE (Open End Diversified Core Equity) Index is a capitalization- weighted, gross of fee, time-weighted return index for real estate investments. Modified with a higher return, greater risk profile to better reflect the nature of private real estate investments, which have greater exposure to the core-plus segment of the market. The HFRI Fund Weighted Composite Index is a global index comprised of single-manager hedge funds that report to HFR Database, weighted according to the AUM reported by each fund for the prior month.
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