Morningstar teams up with Wall Street firms to open private markets to retail investors

The wealth division of Morningstar has teamed up with Apollo Global Management, Franklin Templeton and J.P. Morgan Asset Management to launch a suite of portfolios that will give retail investors exposure to both private and public markets.

Here are some details:

• Initial models will include exposure to private credit and real estate through interval funds, with those funds representing roughly 12 percent to 20 percent of the models’ allocation, Morningstar said on Wednesday.
• The portfolios, set to launch later this year, will be designed with exchange-traded funds and interval funds to make private markets accessible for individual investor portfolios.
• The move comes as Wall Street firms increasingly focus on broadening access to private markets, which historically have been limited to institutional investors and ultra high-net-worth individuals.
• “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,” Franklin Templeton CEO Jenny Johnson said.
• Morningstar’s public/private select series will include six risk-based portfolios, ranging from capital preservation to aggressive growth.

Reuters

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