Morningstar, in partnership with Apollo Global Management, Franklin Templeton, and J.P. Morgan Asset Management, is launching a suite of portfolios designed to provide retail investors with access to private markets, including private credit and real estate, through interval funds and ETFs.
This collaboration democratizes access to private markets, historically exclusive to institutional investors, potentially offering retail investors new avenues for diversification and long-term growth in a volatile economic climate.
Morningstar's wealth division has partnered with investment giants Apollo Global Management, Franklin Templeton, and J.P. Morgan Asset Management to create a new suite of investment portfolios. These portfolios are designed to grant retail investors access to private markets, an area historically reserved for institutional and ultra-high-net-worth individuals.
The initiative will introduce interval funds and exchange-traded funds (ETFs) to make private market investments, such as private credit and real estate, more accessible. Initial models are slated to allocate between 12% and 20% of their holdings to these private market assets. The portfolios, which will include six risk-based options ranging from capital preservation to aggressive growth, are scheduled to launch later this year.
Franklin Templeton CEO Jenny Johnson highlighted the importance of private markets for long-term investment in an environment of persistent inflation and structural uncertainty. This move by Wall Street firms signifies a growing trend to broaden access to alternative investments for a wider investor base.
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