Morningstar, Inc. and iCapital announced a strategic relationship to provide Advisor Workstation users with access to alternative investments and analytics for the first time. The integration equips Advisor Workstation's more than 170,000 users with alternative investment research and tools to evaluate private assets side by side with traditional investments. Coupled with investment proposal and report capabilities in Advisor Workstation, the solution empowers advisors to offer holistic recommendations and build diversified portfolios that include alternative assets for clients.

With the recent completion of the first phase of the strategic relationship, independent advisor clients now have access ? through a single interface ? to both iCapitalMarketplace, a platform featuring the industry's broadest selection of alternative investment funds, due diligence and education resources, fund subscription processing, and third-party reporting services, and iCapital Architect, an innovative portfolio construction and analysis tool for financial advisors to build robust, personalized client portfolios incorporating alternatives.

Phase two, coming in the first half of 2024, will bring the integration to Advisor Workstation's Enterprise-level clients and leverage iCapital's analytics to generate Morningstar's Portfolio Risk Score, a numeric score that represents the risk level of a given portfolio against the Morningstar Target Allocation Index Family, when alternatives are added to client asset allocations. Coupled with the Morningstar Risk Profiler's risk tolerance test, Advisor Workstation can then show the range of Portfolio Risk Scores, known as the Risk Comfort range, within which each client would be most comfortable.