Model Behavior Ep. 5 | Integration of Alternative Investments

Model Behavior returns with an in depth conversation between host Sonali Basak, Chief Investment Strategist at iCapital, and Steve Kaplan, Managing Director and Head of Customized Managed Account Solutions at J.P.Morgan Asset Management.

In this episode, Steve breaks down how alternatives are reshaping next generation model portfolios, evolving from mutual funds and ETFs into holistic structures integrating SMAs and private wealth alternatives. He explains the AID framework—Alpha (private equity), Income (private credit), and Diversification (real assets)—and how these components support specific investor goals.

Topics include:
• How private equity and private credit compare in returns and volatility
• Diversification and balancing risk by reallocating from high yield or equities
• The shift toward unified accounts for a streamlined client experience
• Liquidity trade-offs in private markets and how to educate investors
• Manager selection, dispersion, and aligning strategies to objectives
• Long-term benefits of illiquidity in uncertain markets

Watch to learn how alternatives are becoming a vital accelerant for model portfolio innovation.