Morningstar Builds Public-Private Model Portfolios With Apollo, Franklin Templeton, J.P. Morgan
Morningstar Wealth is expanding its model portfolio lineup with a new series that combines public market investments with private credit and real estate, partnering with Apollo, Franklin Templeton and J.P. Morgan Asset Management to provide the underlying strategies.
The Morningstar Public/Private Select Series will pair public equity and fixed-income strategies from Franklin Templeton and J.P. Morgan with private market exposure sourced from Apollo and Franklin Templeton. Morningstar Wealth, part of registered investment advisor Morningstar Investment Management, will oversee asset allocation, manager research and due diligence.
The firm currently manages approximately $370 billion across model portfolios and separately managed accounts.
The new portfolios will be offered in six risk profiles ranging from capital preservation to aggressive growth. Depending on an investor’s risk tolerance and market conditions, allocations to private credit and real estate will represent roughly 12% to 20% of each model.
Exposure to private markets will be delivered through interval funds, while public market allocations will primarily utilize ETFs. Morningstar said the portfolios will not carry overlay fees.
CEO Kunal Kapoor said the offering is designed to combine Morningstar’s research, asset allocation expertise and pricing capabilities into a single framework, helping financial advisors navigate private markets while broadening access for individual investors.
The launch reflects a broader industry trend as wealth managers seek to incorporate alternative assets into packaged investment solutions.
Franklin Templeton expanded its private markets model offerings earlier this year through a blockchain-based platform and previously made models available through Envestnet and the CAIS Models Marketplace. Apollo and J.P. Morgan Asset Management have also entered the space through partnerships with model portfolio platform GeoWealth.
