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The wealth division of Morningstar has entered into a partnership with major asset managers including Apollo Global Management, Franklin Templeton, and J.P. Morgan Asset Management to create investment portfolios that combine exposure to both public and private markets for retail investors. The strategy aims to widen access to private credit and real estate through interval funds. The launch is planned for later this year, with allocations in private assets expected to form a smaller but structured portion of diversified models.
The wealth division of Morningstar has joined hands with Apollo Global Management, Franklin Templeton, and J.P. Morgan Asset Management to develop a new set of model portfolios aimed at giving retail investors access to both private and public markets within a single framework.
The planned portfolios are expected to include exposure to private credit and real estate through interval funds. According to the structure outlined, these private market components will account for around 12% to 20% of the overall allocation in the model strategies. The remaining exposure will be built using exchange-traded funds and other public market instruments to maintain liquidity and diversification.
The initiative is being positioned as a step toward widening access to private markets, which have traditionally remained limited to institutional investors and high-net-worth individuals. The new approach seeks to integrate these asset classes into retail-oriented investment products in a more structured and accessible manner.
In statements shared earlier this week, Franklin Templeton highlighted that the relevance of private markets is increasing due to long-term investment needs in an environment marked by persistent inflation and ongoing economic uncertainty. The comment was made in the context of growing demand for investment solutions that balance stability with long-term growth potential.
The new “public/private select series” from Morningstar will consist of six risk-based portfolios, ranging from capital preservation strategies to aggressive growth allocations. Each portfolio is designed to vary its exposure based on risk appetite, while still maintaining a portion of private market investments within a controlled allocation framework.
The launch of these portfolios is expected later this year, marking a broader shift among asset managers toward blending private and public investment strategies for individual investors.
Source Reuters
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