This edition of the Investments Roundup features Morningstar launching Medalist Ratings for Semiliquid Funds, AssetMark upgrading its self-directed brokerage accounts, Orion partnering with GiftingNetwork on donor-advised funds, Jackson debuting fixed index annuities, iCapital tapping Drew Carrington to head alts in retirement portfolios, CI Global adding new digital asset funds, Wells Fargo partnering with InvestCloud on alts, SoFi launching an agentic AI ETF, Goldman and T. Rowe Price collaborating on public-private investments, Lincoln and Bain launching a private market fund, HFR on strong hedge fund performance and Morningstar introducing a public-private equity benchmark.
Larry's Take
Private markets are taking the stage more frequently these days. This month’s news includes Morningstar’s public-private equity index, Lincoln and Bain’s private credit fund and Goldman Sachs and T. Rowe Price’s collaboration on private markets access.
Like many trends in wealth management, technology and client demand are major drivers for the advancement of private markets to broader groups of clients. Data science and automation are making private investments information faster, more detailed and more accessible to comparison and standardization.
The expansion of private markets can be considered a fait accompli at this point. What remains is how advisors (and compliance officers) choose to manage the trend. Firms must decide which products are appropriate for their clients and platforms, and which clients should have access to what products. For those ignoring the trend, ignorance will not be bliss.
If you would like to discuss this Larry’s Take further, including how these trends might impact your business, please contact me at larry.roth@rlrstrategicpartners.com.
Morningstar Launches Its First Medalist Ratings For Semiliquid Funds
Morningstar publishes its first Morningstar Medalist Ratings for Semiliquid Funds. The company said the forward-looking, qualitative ratings analyze the performance potential of semiliquid strategies in comparison to their peers, traditional mutual funds and ETFs. The ratings use Morningstar’s five-tier scale – Gold, Silver, Bronze, Neutral and Negative.
Semiliquid fund net assets have increased over 60% since 2022, driven by “heightened interest in private credit and private equity,” Morningstar said, pointing to research in its recent report. Total net assets in funds offering limited liquidity and exposure to private assets neared $350 billion at the end of 2024. But Morningstar said that semiliquid funds’ fee structures and limited liquidity make them hard to evaluate, underscoring the need for independent analysis.
“Private investments are making their way into retail portfolios, but navigating this complex and evolving market comes with a significant information gap for many investors,” said Laura Lutton, Global Head of Manager Research. “Our initial ratings reflect differing levels of conviction in each strategy. Higher-rated strategies demonstrated strong management teams and proven experience, while the lowest rating was influenced by structural concerns that warrant further evaluation.”
AssetMark Upgrades Self-Directed Brokerage Accounts
Concord, California-based AssetMark launches an upgraded version of its self-directed brokerage accounts (SDBA) that incorporates employer-sponsored retirement accounts into clients’ investment strategies. The new integration allows advisors to manage clients’ 401(k), 403(b) and 457 plan assets directly on AssetMark’s eWealthManager platform, through Schwab Personal Choice Retirement Account and Fidelity BrokerageLink.
AssetMark said the integration can help advisors grow assets under management (AUM) with their existing clients — a notable opportunity given that retirement accounts represent approximately 35% of the average American’s wealth. Advisors will be able to align clients’ investment strategies across their full portfolios using AssetMark models for their retirement assets.
“As advisors look to provide more holistic financial guidance, the ability to manage clients’ retirement accounts is a critical component,” said Michael Kim, CEO of AssetMark. “Our SDBA solution empowers advisors to meet that need—seamlessly and at scale.”
Orion Partners With GiftingNetwork On Donor Advised Funds
Omaha, Nebraska-based Orion partners with GiftingNetwork on personalized, donor-advised funds (DAFs). Orion advisors can offer branded DAFs connected to a network of charities while providing clients with tax-informed financial planning for their donations.Orion says clients increasingly value purpose-driven planning, with 71% of high net worth investors expecting help ensuring investment strategies align with personal values, and 83% of millennials wanting financial plans to reflect their beliefs. It also says charitable planning services drive client loyalty and increased AUM.
“Today’s investors want more than performance – they want purpose,” said Todd Bertucci, Executive Vice President at Orion Advisor Technology. “Orion’s partnership with GiftingNetwork brings charitable giving into the heart of a personalized wealth experience. It’s part of how Orion empowers advisors to deliver tax-efficient, goal-aligned strategies that resonate emotionally and financially with clients.”
Jackson Debuts Fixed Index Annuities With Guaranteed Minimum Withdrawal Benefits
Lansing, Michigan-based Jackson National Life Insurance launches two fixed index annuities (FIAs) with embedded guaranteed minimum withdrawal benefits. Jackson Income Assurance is commission-based, while Jackson Income Assurance Advisory is fee-based. Both options provide protected lifetime income with potential for additional interest based on S&P 500 Index returns.
The FIAs offer an 8% annual roll-up, credited daily for up to 10 years, and a 30% premium applied to the guaranteed withdrawal balance on deposits in the first year. Jackson’s Brian Sward, EVP, Head of Product Solutions, said the FIA is advisor-friendly in that “financial professionals can take the fee from the contract without a negative impact to the income benefit.”
“Jackson is committed to delivering innovative products that address the evolving needs of today’s consumers, including increasing demand for guaranteed income and protected growth,” said Alison Reed, Chief Product Development and Strategy Execution Officer at Jackson. “The launch of the Jackson Income Assurance Suite further expands the spectrum of our product offerings—ensuring we can support a wide range of retirement planning goals and help more individuals achieve financial security with confidence.”
iCapital Appoints New Leader For Alternatives In Retirement Portfolios
iCapital names Drew Carrington as Managing Director, Alternatives in Retirement Portfolios. He reports to Dane Vene, the firm’s Co-Founder, Managing Director and Co-Head of iCapital Solutions.
In the new role, Carrington will lead efforts to accelerate alts adoption in the defined contribution (DC) market. As DC and retirement markets evolve toward increased adoption of alternative investments and greater personalization, Carrington will also partner with alternative managers “to develop and distribute new vehicles that deliver cost-effective, professionally managed private market solutions” for the DC market, iCapital said.
“iCapital’s technology platform is purpose-built to scale and meet the needs of the broader ecosystem as the industry commits to making alternative investments available in suitable products for DC plans,” the firm said.
CI Global Expands Lineup Of Digital Asset Funds
Toronto-based CI Global Asset Management (CI GAM) adds a series of new digital asset funds, including a crypto ETF and a crypto mutual fund. The offerings are intended to simplify the process of adding digital assets to clients’ portfolios.
Among the new funds are the CI Galaxy Core Multi-Crypto ETF, a fund that invests in bitcoin, ethereum and solana; and the CI Solana Fund, a mutual fund investing in the CI Galaxy Solana ETF. The firm also introduces Canadian dollar hedged series of its existing digital asset ETFs and mutual funds and announces a proposal to stake ethereum within CI Galaxy Ethereum ETF.
“With these changes, CI GAM is making it even easier to access the benefits of digital assets,” said Jennifer Sinopoli, Executive Vice-President and Head of Distribution for CI GAM. “Our lineup allows investors to target prominent digital currencies through the convenience of a mutual fund or ETF structure with multiple purchase options. Additionally, we now provide two multi-crypto ETFs that invest in a basket of ‘blue chip’ cryptocurrencies, providing one-ticket, diversified exposure to the digital assets space.”
Wells Fargo Partners With InvestCloud To Offer Alts In Unified Managed Accounts
Wells Fargo’s Wealth & Investment Management division partners with InvestCloud to offer alternative investments through unified managed accounts (UMAs). By offering alternative investments in the same account as traditional stocks, bonds and cash, Wells Fargo says it provides advisors with ways to better tailor clients’ investment portfolios. The alternative offerings can provide qualified clients with hedging and arbitrage techniques, derivatives, long and short positions and private offerings. The latter can include alternative mutual funds, hedge funds, managed futures, private equity, private debt and private real estate.
“We are thrilled to partner with Wells Fargo to further elevate their investment capabilities with cutting-edge technology, tools, and resources,” said Jeff Yabuki, Chairman and CEO of InvestCloud. “InvestCloud is delivering innovations which enable an exceptional and personalized wealth management experience to enhance the client-advisor relationship.”
SoFi Launches An Agentic AI ETF
SoFi introduces the SoFi Agentic AI ETF (AGIQ), an ETF that invests in the BITA US Agentic AI Select Index (BITA). The index tracks companies working with agentic AI in industries such as self-driving cars, AI assistants, cybersecurity networks, autonomous industrial machinery, semiconductors and cloud computing. SoFi said BITA has about 30 holdings, including Salesforce, Tesla and NVIDIA.
Tidal Investments is the Investment Adviser for AGIQ. Tidal also advises other SoFi ETFs including SoFi Select 500 ETF, SoFi Next 500 ETF, SoFi Social 50 ETF and SoFi Enhanced Yield ETF.
“Emerging market themes can be challenging to capture, especially for new or casual investors – but with the SoFi Agentic AI ETF, investors can easily tap into the next evolution of AI,” said Brian Walsh, Head of Advice and Planning Director at SoFi. “We’re excited to add AGIQ into our ETF suite to give our members another opportunity to expand their portfolios and access sophisticated investment strategies.”
Goldman And T. Rowe Price Collaborate On Public-Private Investments
Goldman Sachs and T. Rowe Price announce a collaboration on public and private market offerings for retirement and wealth investors. Goldman will invest up to $1 billion in T. Rowe Price shares, with a goal of owning up to 3.5% of the firm. The firms will work on private market access for investors, advisors, plan sponsors and plan participants.
Offerings will include co-branded target-date strategies for retirement plans, expected to launch in 2026. They will also create model portfolios for advisors with separately managed accounts (SMAs), direct indexing, ETFs, mutual funds and private market investments for mass affluent and high net worth investors.
“This investment and collaboration represent our conviction in a shared legacy of success delivering results for investors,” said David Solomon, Chairman and CEO of Goldman Sachs. “With Goldman Sachs’ decades of leadership innovating across public and private markets and T. Rowe Price’s expertise in active investing, clients can invest confidently in the new opportunities for retirement savings and wealth creation.”
Lincoln And Bain Launch Fund Giving Individual Investors Access To Private Credit
Lincoln Financial and Bain Capital debut the Lincoln Bain Capital Total Credit Fund, an evergreen private market fund. Its private credit investments include loans to mid-sized private companies, asset-based finance and structured credit.
Lincoln Financial Distributors, Lincoln Financial’s wholesale distribution organization, will distribute the fund. Unlike most closed-end funds, the Lincoln Bain Capital Total Credit Fund’s shares won’t be listed on any securities exchange, the firms said.
Ellen Cooper, CEO, President and Chairman of Lincoln Financial, said, “By partnering with Bain Capital to advance innovative solutions, we’re combining their more than 25 years of credit investment expertise with our world-class distribution platform and funds management experience to provide clients with expanded availability to a broader set of offerings.”
Hedge Fund Index Rises 2.28% In August For Fourth Month Of Gains
Hedge funds rose again in August for a fourth consecutive month of gain, according to hedge fund analysis firm HFR. The HFRI Fund Weighted Composite Index, a proxy for the global hedge fund industry, was up 2.3% for the month and over 7% for the year.
The primary drivers were record growth in global equities and investor optimism about lower U.S. interest rates. HFR projected that despite positive sentiment around these themes, managers will likely position tactically for “either continuation or reversals of these trends in this fluid environment.”
“While the HFRI showed exciting performance gains for the month, it is significant that August saw a powerful broadening out of the strategic drivers of performance,” said Ken Heinz, President of HFR. “In addition to large cap technology and AI-spending related exposures, we also observed important contributions from small cap, value, financial and emerging market equities, as well as commodity-related, cryptocurrency, interest rate sensitive and M&A drivers.”
Morningstar Launches New Public-Private Equity Benchmark
Morningstar launches a new benchmark combining public and private equity investments in a single index, the Morningstar PitchBook US Modern Market 100 Index. It tracks the performance of the 90 largest U.S. public companies and the 10 most significant late-stage venture-backed private firms, with the allocation meant to represent the relative sizes of the public and private equity markets.
SpaceX, OpenAI and Stripe are some of the VC-backed firms included in the index. Information on the private companies is drawn from PitchBook’s private market data. The index is designed to better capture “the full investor opportunity set” at a time when some of the most noteworthy and capital-rich companies — in sectors like AI, biotech and fintech — are opting to stay private longer, Morningstar said.
“As private investments make their way into more investor portfolios, investors need better data and relevant benchmarks to capture the modern opportunity set,” says Ron Bundy, President of Morningstar Indexes. “Our new index empowers investors with a unified framework that reflects both public and private market leaders, so investors can evaluate public and private investments on the same level playing field.”
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