Brookfield announced its private wealth platform has partnered with iCapital to launch a new interactive asset allocation tool for financial advisors and their clients. Powered by iCapital Architect, “Alts Allocator” utilizes three research-based high-net-worth investor profiles to illustrate how adding alternative investments to a traditional 60/40 portfolio can “enhance diversification and improve potential investment outcomes.”
The “Alts Allocator” model analysis is built upon three alts investor personalities: Traditionalist, Emerging Adopter, and Alts Champion, which were developed through “data from Brookfield’s Alts Institute Alternative Investing Survey.”
Users can then opt to create custom portfolios from asset classes, “including infrastructure, real estate, private equity, and private credit, and compare them to the benchmark of their choice.”
This launch comes at a time when advisor interest in alternatives is said to be growing steadily.
According to iCapital’s advisor survey, the vast majority or “96% of advisors plan to maintain or increase their allocation to alternatives this year.”
“Alts Allocator” is designed to meet this “demand by helping advisors model the potential impact of alternatives in client portfolios with greater clarity and confidence.”
John Sweeney, CEO of Brookfield’s private wealth business, said that equipping advisors with the resources they need “to meaningfully engage clients around alternative investing is critical.”
Their Alts Institute research study revealed that investors “increasingly view alternatives as an essential part of a portfolio strategy and believe that having an alternatives allocation may contribute to long-term outcomes compared to a traditional portfolio.”
‘Alts Allocator’ gives advisors a way to acceass the benefits of alternatives while also “meeting clients where they are.”
iCapital Architect—the portfolio construction tool powering “Alts Allocator”—is part of iCapital’s modular suite of solutions “built to simplify the integration of alternative investments.”
Architect reflects iCapital’s commitment to delivering data-driven tools that elevate the advisor experience and foster “client engagement.”
Via its collab with Brookfield, iCapital continues to “help wealth managers navigate complexity, educate their clients, and support the integration of alternatives in client portfolios.”
Dan Vene, Co-Founder and Co-Head of iCapital Solutions at iCapital said that powered by Architect, ‘Alts Allocator’ helps advisors “evaluate the impact of allocating to alternatives in client portfolios—enabling them to assess asset performance with precision, make recommendations, and engage in … insight-driven conversations that … drive better outcomes.”
The launch of “Alts Allocator” is part of an initiative by The Alts Institute to arm advisors with the tools and resources “needed to take advantage of the opportunities in alternatives.”
The Alts Institute includes a library of foundational alternatives content, marketplace insights and research from Brookfield. It is intended to help advisors build client confidence in alternatives and “deepen conversations around investing needs and motivations.”
