Morningstar’s Morningstar Wealth division announced it is working with Apollo, Franklin Templeton and J.P. Morgan Asset Management to launch a suite of public/private model portfolios.
The Morningstar Public/Private Select Series will bring together Morningstar Wealth’s asset allocation, manager research and due diligence, public market strategies from Franklin Templeton and J.P. Morgan Asset Management and private market strategies from Apollo and Franklin Templeton, spanning private credit and real estate.
Morningstar Wealth said it will draw on its experience in asset allocation, investment selection and portfolio construction, with a research-led focus on investor outcomes in building the multi-manager, multi-asset portfolios.
“Morningstar is bringing independent research, disciplined asset allocation and transparent pricing together in a single framework, so advisors can help navigate complex private markets and democratize access to them for even more investors,” Morningstar CEO Kunal Kapoor said in a statement.
Morningstar Wealth is a group within Morningstar Investment Management, a registered investment advisor, which works with advisors to provide investment strategies such as model portfolios and separately managed accounts with $370 billion in assets under management.
The portfolios will be constructed with ETFs and interval funds. At launch, the suite will include six risk-based portfolios, ranging from capital preservation to aggressive growth.
By packaging private market exposure within a diversified model, Morningstar Wealth said it “aims to remove the burden of sourcing, sizing and managing liquidity, allowing advisors to focus on client needs rather than portfolio construction.” The initial models will include exposure to private credit and real estate through interval funds, ranging approximately between 12% to 20% of the models’ allocation, depending on risk profile and current market opportunity.
“When I think about why private markets matter now more than ever, it’s not just access but also focus on the long-term in a short-term world,” Franklin Templeton CEO Jenny Johnson said in a statement. “We are living in an environment of persistent inflation and structural uncertainty. We’re excited to bring greater access to these types of solutions.”
“Together this group can help deliver diversified portfolios that lean on the expertise of skilled active managers to integrate public and private markets prudently,” George Gatch, CEO of J.P. Morgan Asset Management, said in a statement.
The Morningstar Public/Private Select Series is expected to be made available to financial advisors through wealth and technology platforms. Additional details, including final structure, specific pricing availability, and implementation, will be announced in the coming months.