The documentation is minimal, but spObject is called the target object and must be defined.
To test I created an Alembic file of Gwyn dancing. As I exported an avatar, i figured the target must be an avatar to, so I used the same one.
The assumption is correct and the file does import, but the result is kind of strange. Part of the character is animated and part stays in place:

Obviously, there must be a correct way to do this. What is important is that a point cache can be imported into iClone, so RL may have plans for it somewhere.
EDIT: Also, the animation is only shown when the playhead is moved along the timeline. The animation does not play back.