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.
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.
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.
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.
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:
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.
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.
