By Amey Stone

Financial advisors who are fans of Morningstar research and want a turnkey way to integrate private assets into client portfolios will soon have a new crop of model portfolios to consider. Later this year, Morningstar will launch a suite of six portfolios made up of exchange-traded and interval funds managed by Apollo Global Management, Franklin Templeton, and J.P. Morgan Asset Management.

The six models will vary in risk with goals ranging from capital preservation to aggressive growth. Private asset classes include credit and real estate and will be incorporated via semi-liquid interval funds, also known as evergreen funds. Allocations to private assets will range from 12% to 20%, depending upon market conditions and each portfolio's risk profile, says Morningstar.

The portfolios provide diversification across asset classes and fund managers without the administrative burden of engaging multiple asset managers, says Steve Lundquist, head of U.S. advisor at J.P. Morgan Asset Management. "We think this is an answer many advisors are looking for and one of the first of its kind," he says.

Although there are other partnerships between public and private asset managers, this may be the first with a third-party independent investment research firm doing the portfolio management. Morningstar's advisor-focused wealth division will handle asset allocation, manager research, and due diligence. The group has $370 billion in assets under management and advisement in model portfolios, managed accounts, and separately managed accounts (SMAs).

"For us, this is about helping advisors navigate complexity," says Philip Straehl, chief investment officer, Americas, for Morningstar Wealth. Morningstar promises competitive pricing, with no overlay fees. Account minimums will be $25,000.

Private-market hiccups. Kunal Kapoor, chief executive officer of Morningstar, says the portfolios are part of a broader trend of helping advisors "democratize" investor access to private markets.

Although many advisors are seeking to increase allocations to private markets to expand diversification and boost yield, the effort has recently experienced setbacks due to limits on redemptions at some private credit funds and pushback on a regulatory proposal to incorporate private assets into 401(k) plans.

George Gatch, chief executive officer of J.P. Morgan Asset Management, says the team approach with Morningstar can play a role in resolving investors concerns. "Together this group can help deliver diversified portfolios that lean on the expertise of skilled active managers to integrate public and private markets prudently," he says.

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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June 17, 2026 06:00 ET (10:00 GMT)

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