Rex Morgan, RIA Relationship Manager for Capital Group, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss how Capital Group engages with financial professionals to answer their questions on alternative investments. With the launch of interval funds and active ETFs, Capital Group now has a team of 20 servicing the RIA community.
Morgan addresses questions RIAs might have, whether they’re just getting started with alternative investments or have been allocating to them for years. Capital Group is willing to help educate financial professionals, their firm and their clients.
Many of the questions concern portfolio construction, including how to allocate to alternatives, where to fund the allocation from and which investment objective each allocation serves. Alternatives can be added to a portfolio to help improve growth, income and/or diversification. The more experienced financial professionals ask about the pros and cons of investment vehicles, how many funds to hold and what types, and when a single-fund solution may make sense.
Capital Group offers three interval funds that allocate approximately 60% to public markets and approximately 40% to private markets. For example, the Capital Group KKR Core Plus+ fund invests 60% in public core plus sectors (Treasuries, investment-grade, and high yield), and for its private markets exposure, allocates 20% to direct lending and 20% to asset-based finance. The size of the allocation to an interval fund investing across public and private credit depends on each client’s specific circumstances and investment objectives.
Resources:
Portfolio Construction Insights
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the interval fund prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
For Public-Private+ Funds: The funds are interval funds. Repurchase Risk: Each fund currently offers quarterly repurchases of up to 10% of its outstanding shares, which may limit shareholders’ ability to liquidate their investments when and in the amounts desired; Investment Risk: Strategies are not guaranteed to meet objectives and are subject to loss. Past performance is not indicative of future results; Credit and Liquidity Risk: Each fund invests in private illiquid credit securities, and may also generally invest substantially in high-yield, lower-rated securities and structured products, all of which carry higher credit and liquidity risks; Interest Rate and Inflation Risk: Investments may fluctuate in response to changes in interest rates and real interest rates; Derivatives Risk: The use of derivatives involves various risks; Foreign Investment Risk: Investing outside the U.S. involves risks such as currency fluctuations and price volatility; Nondiversified Fund Risk: Each fund can invest a larger percentage of assets in fewer issuers, increasing the impact of poor results from a single issuer.
Capital Group and Kohlberg Kravis Roberts & Co. L.P. (“KKR”) are not affiliated. The two firms maintain an exclusive partnership to deliver public-private investment solutions to investors .KKR serves as the sub-adviser of Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+ with respect to the management of each fund’s private credit assets.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.
©2026 Capital Group. All rights reserved.