Morningstar announced that its Morningstar Wealth division is working with Apollo, Franklin Templeton, and J.P. Morgan Asset Management to launch a suite of public/private model portfolios designed to give financial advisors a research-driven way to access private markets.
The Morningstar Public/Private Select Series is expected to launch later this year. The models are designed to expand access to private markets while addressing implementation challenges through multi-manager selection, transparent pricing, and disciplined portfolio construction.
The portfolios will combine Morningstar Wealth’s asset allocation, manager research, and due diligence capabilities with public market strategies from Franklin Templeton and J.P. Morgan Asset Management. The models will also include private market strategies from Apollo and Franklin Templeton across private credit and real estate.
Morningstar said the offering differs from many public/private solutions built around a single firm’s strategies. The company said its approach draws on Morningstar Wealth’s experience in asset allocation, investment selection, and portfolio construction, with a research-led focus on investor outcomes.
Morningstar Wealth plans to construct portfolios using ETFs and interval funds to make private markets more accessible to individual investors. The series is expected to include six risk-based portfolios, ranging from capital preservation to aggressive growth, with public and private exposures integrated into a single asset allocation.
The initial models will include exposure to private credit and real estate through interval funds representing approximately 12% to 20% of allocations, depending on risk profile and current market opportunity. Morningstar said the portfolios will feature transparent and competitive pricing, including no overlay fees, along with accessible minimums designed to expand access beyond traditional institutional investors.
By packaging private market exposure within a diversified model, Morningstar Wealth aims to reduce the burden on advisors related to sourcing, sizing, and managing liquidity. The portfolios are also designed to address liquidity constraints, valuation timing, and complexity through research-driven allocations between liquid and illiquid assets, due diligence, ongoing oversight, and clear disclosure of liquidity and portfolio characteristics.
Morningstar Public/Private Select Series is expected to be made available to financial advisors through leading wealth and technology platforms. Additional details, including final structure, specific pricing, availability, and implementation, are expected to be announced in the coming months.
KEY QUOTES:
“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.”
Kunal Kapoor, Chief Executive Officer of Morningstar
“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. We are living in an environment of persistent inflation and structural uncertainty. We’re excited to bring greater access to these types of solutions.”
Jenny Johnson, Chief Executive Officer of Franklin Templeton
“As markets continue to test traditional investment approaches and the 60/40 portfolio evolves, advisors need access to a much broader set of investment opportunities and strong oversight. 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, Chief Executive Officer of J.P. Morgan Asset Management
“The next generation of model portfolios will blend public and private markets, and offer investors greater diversification, more yield, and better reflect the full breadth of the economy. These models reflect what clients are seeking, private markets as a core portfolio building block, rather than an allocation to the side.”
Jim Zelter, President of Apollo
