This feature is available in Enterprise and Ultimate editions.
The planning and prioritization process often begins at a higher level than the creation of a flat backlog. Portfolio Items allow the organization to first define big picture items and elaborate on the large features to break them down into smaller components that can be delivered by independent project teams.
The Portfolio Tree (formerly Epic Tree) gives you the ability to define and evaluate this functional hierarchy of features. You can prioritize them based on their relative value and high-level cost as well as their support of the organization's strategic direction. As needed, you can decompose portfolio items into one or more more detailed levels of child portfolio items and backlog items that can be delivered by the teams. While project teams work the backlog items, the Portfolio Tree provides the tools to track the progress of higher-level portfolio items that deliver business value to the organization.
Using Strategic Themes, you can also group portfolio items to tie strategic planning activities at the company and/or organization level with portfolio item prioritization.
To help you understand at a glance whether you're viewing high-level initiatives or lower level features, portfolio item types can be color coded so you can easily differentiate them in the Portfolio Tree, Portfolio Kanban, Portfolio Timeline, Portfolio Details as as easily as stories and defects. To learn how to associate colors with portfolio item types, see List Type Administration.