Introducing Nuant's Institutional-Grade Portfolio Management System
Effectively manage crypto portfolios
Any portfolio manager with experience in the digital asset market knows that it is a rapidly evolving and fragmented ecosystem. In order to balance risk and capitalize on the rewards, funds, portfolio managers and institutional professionals need a streamlined and data-driven overview of all their assets and portfolios. However, in the current crypto asset market, this is easier said than done, with some needing to resort to manual aggregation of data into Excel files, custom data integration scripts, or other similarly inefficient and error-prone techniques.
Nuant is a purpose-built crypto portfolio management system with comprehensive analytics and data intelligence platform for crypto funds, crypto portfolio managers and investment professionals. Through one clean and intuitive user interface, it provides tools to efficiently manage digital asset portfolios, analyze performance, identify market opportunities, as well as a suite of risk management capabilities.
Read on to learn more about how Nuant’s crypto portfolio management system can speed up a portfolio manager’s workflow and take a look at our intro video to get a first taste.
Flexible crypto portfolio management options
As the market matures, we are witnessing greater sophistication in the structures of crypto asset portfolios. Most managers will be overseeing more than one portfolio concurrently, or working for a firm which administers portfolios on behalf of multiple clients. In addition, some managers may function under a “fund-of-funds” approach, whereby multiple funds with different investment criteria are combined to achieve broad diversification and balanced risk.
In these kinds of scenarios, portfolio managers typically need to juggle multiple priorities. Each individual client portfolio will usually have a set thresholds governing the exposure to certain assets based on risk appetite and other criteria. In addition, the portfolio manager or firm will also sometimes want to see a global overview of risk, exposure and assets across all portfolios and clients.
Nuant addresses these needs, enabling you to view and analyze all assets through one intuitive dashboard. In addition, multiple users can be established for a single investment entity, providing an integrated data and analytics interface for your entire team across all portfolios and accounts.
Integrate all accounts and wallets into a unified portfolio management experience
Accounts and wallets can be added on the “integrations” page, accessible from the account menu at the top-right of the screen. The connectivity provided by Nuant is extensive, allowing automatic reconciliation with over 25 centralized exchanges, 50 blockchains, 300 protocols, and seven custodial solutions all supported by default.
Furthermore, Nuant will soon be adding support for digital asset derivatives, enabling you to view all your crypto assets and instruments in one place. Depending on the accounts and wallets selected, you may need to provide an API key, secret key, or public address to complete the setup.
Nuant is not just limited to centralized exchanges either, with full support for leading DeFi protocols provided out of the box. This means that you can keep track of any lending or staking activities you may be engaged in without ever leaving the main Nuant interface.
Clear, concise and multifaceted metrics for exposure management
The unfortunate failure of trading venues like FTX in recent years underlined the importance of counterparty risk. In November 2022, the Financial Times reported that the collapsed exchange’s 50 largest creditors were all customers, who were owed over $20 million each. In this environment, prudent funds and crypto portfolio managers are establishing limits in relation to holdings with counterparties. For example, there might be a rule that no more than 40% of a portfolio can be held on any one exchange account.
Nuant is built to make exposure analysis and management quick and simple. With one click, you can filter all assets by exchange account across one or multiple portfolios. In addition, you can view a detailed breakdown of your exposure by account, network, portfolio and sector.
Diversify across digital asset sectors using the Nuant or MSCI datonomy standard
Meaningful diversification is one of the key ways of balancing risk and return in a crypto asset portfolio. Research suggests that cryptocurrency portfolios that contain assets from multiple sub-sectors tend to perform better in terms of diversification and risk. In a complex and dynamic market, however, it can be difficult to know which methodology to use to meaningfully categorize digital assets into sectors. Furthermore, analysis and categorization of tokens can be a time- and resource-intensive process.
Nuant is the only portfolio management system to support the Morgan Stanley Capital International datonomy standard, a unified system for classifying a broad range of assets using a standardized process. This enables you to filter your assets with confidence, safe in the knowledge that they have been categorized using a robust methodology from an industry-leading financial data provider.
Global portfolio analysis
At the heart of Nuant lies the global portfolio screen, where configurable widgets provide an overview of all crypto asset holdings which can be configured according to user preferences. These include metrics, analytics and insights such as:
- The market value widget provides a single figure for the current market value of your global portfolio. The decentralized nature of the digital asset market — featuring many centralized and decentralized exchanges issuing data of variable reliability — makes it challenging to calculate accurate price data. To overcome this, Nuant integrates data from both Coingecko and CoinMarketCap, two of the leading data aggregators in the market.
- The unrealized P&L widget calculates the portfolio’s change in value over various configurable time windows, such as the past day, the past week, and the past 30 days. In addition, the total yield to date for the portfolio is listed. This enables you to assess the performance of your overall portfolio over differing timeframes, and ascertain the theoretical profit or loss that would accrue if all assets were liquidated at current market values.
- The asset exposure widget showcases the biggest assets in your holdings according to what percentage they make up of the global portfolio.
- The mark-to-market widget details the value of the global portfolio at market rates over time since its creation.
- The transactions sent widget features a bar chart showing the total number of sent transactions across your global portfolio each month. This is useful to get a quick overview of changes in the volume of outward transactions and assess the efficiency of the portfolio from the perspective of transaction fees.
- The incoming and outgoing token widgets provide a summary of the tokens that have entered the portfolio and those have been liquidated, sorted in descending order by market value. This can provide clients with an impression of the relative exposure to different assets over the entire history of the portfolio, beyond its current composition.
- The holdings tab aggregates the assets in the global portfolio and enables you to sort them according to quantity held, percentage exposure, daily P&L and total value. In addition, the assets listed in this widget can be grouped according to the underlying blockchain network, asset, account or MSCI sector, making it a useful tool for exposure management. This quick and seamless determination of relative exposure to certain assets, networks, accounts, and sectors simplifies compliance with the relevant thresholds set by clients, or stipulated in the investor prospectus of the fund.
- The DeFi tab details the performance of all your current DeFi positions, such as lending & borrowing or staking positions, across decentralized platforms.
- The history tab lists all historical orders, trades, transfers and swaps. It can be filtered by date, account, asset, order type, price, quantity, total value, and status. Trade transactions refer to completed trades that have been conducted on centralized exchanges. Transfer transactions detail all transfers, both on-chain and off-chain. The swap tab lists all asset transactions conducted on DeFi platforms.
In a forthcoming release, Nuant will also enable portfolio managers to manually enter a transaction or order and see how it would affect the global portfolio at current market prices. This enables you to examine the implications of a trade in advance before executing it through your order and execution management system (OEMS) of choice.
Reduce your operational risk with Nuant's Crypto Portfolio Management System
In a rapidly evolving and fragmented digital asset sector, portfolio managers have distinct needs. We have built Nuant from the ground up to address these challenges and we are constantly working with our clients to innovate new features to simplify their daily tasks. Let our platform do the heavy-lifting for you and help you make better-informed investment decisions. Use our real-time analytics and insights powered by our on-chain and market data service to improve your portfolio performance and let you focus on maximizing returns and generating Alpha..
Interested in using Nuant to gain a global view of your portfolio and boost the efficiency of your workflow? Click here to book a demo.
References
Crypto never sleeps - The challenges of data aggregation, pricing and risk. (2022) Bloomberg Professional Services. Retrieved 19 April 2023.
Benefits of sectoral cryptocurrency portfolio optimization. (2022). Čuljak, M., Tomić, B. and Žiković, S., Research in International Business and Finance, 60, p. 101615. Retrieved 19 April 2023.
FTX businesses owe more than $3bn to largest creditors. (2023). Oliver, J., Indap, S. and Chipolina, S. The Financial Times. Retrieved 19 April 2023. Digital Assets Solutions. (2023) Morgan Stanley Capital International (MSCI). Retrieved 19 April 2023.
