The pilot program was open to a total of two million individual investors in five equity index funds that have combined assets under management of more than $100 billion.

Avoid active strategies that engage in individual security selection and/or market timing.

Called Alts Bridge, the platform will integrate with BNY’s existing wealth management and technology platforms for advisors and intermediaries.

The updated framework introduces a new method that Morningstar says is more precise in assessing how much alpha a managed investment can add. Nearly one-fifth of the 200,000 funds the firm rates will be affected, mostly as downgrades.

The portfolio will include private equity, private credit and real assets and will be open to qualified investors.

Morningstar’s latest U.S. Active/Passive Barometer compared active and passive fund performance over the year ending in June.