Morningstar buys European index design provider in 'disruption' move

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Morningstar buys European index design provider in 'disruption' move

Morningstar has acquired European-based index design provider Moorgate Benchmarks to fuel indexing growth and innovation.

In 2019, Moorgate Benchmarks was seed funded by ETFS Capital as the company's only external investor. This transaction sees the company become a wholly owned subsidiary of Morningstar.

The addition of Moorgate Benchmarks expands Morningstar Indexes' ability to service European clients.

The index industry today needs disruption, with a number of entrenched players who are not providing enough value and innovation to investors for the fees they charge."

Under the terms of the deal, Moorgate Benchmark's chief executive officer Tobias Sproehnie will become head of Morningstar Indexes in Europe, reporting to president of Morningstar Indexes, Ron Bundy.

Gareth Parker and Marke Pralle, the additional members of Moorgate Benchmark's executive team, will also join the Morningstar Indexes leadership team and report to Sproehnie.

Moorgate Benchmarks' 20 employees, based in the UK and Germany, will immediately become part of Morningstar Indexes. 

"The index industry today needs disruption, with a number of entrenched players who are not providing enough value and innovation to investors for the fees they charge. Moorgate Benchmarks' advanced technology, index calculation process and strong reputation in Europe will help us address this issue head on," said Bundy.

"The capabilities that Moorgate Benchmarks brings will help accelerate our goal of becoming a leading global index provider by providing more value to the end investor."

First published by our sister title Investment Week