Researchhouse InvestorWeb will phase out the purchase of raw data from Morningstar as it seeks to create its own, depriving Morningstar of a sizeable portion of its revenue stream.
According to InvestorWeb chief executive Otto Buttula, his group provides around 35 per cent of Morningstar’s revenue through the purchase of quantitative data for its own use and that of a number of clients.
However, Buttula says that InvestorWeb plans to gather this data itself for use in its Visyplan and Llink planning software, and for sale to its own clients.
Another driver for the shift is that the provision of third party data was not suitable for all clients and by generating their own data, InvestorWeb could control the information flow.
The collection of data has already begun, with the group collecting its own hedge fund data. However, Buttula would not disclose when InvestorWeb would be making full use of its own data supply.
“The whole issue of a timeframe on this is a scoping exercise for us and is commercially sensitive and there are issues to cover in the delivery of information to planners, as at present there is no perfect solution in Australia,” Buttula says.
Despite the plans to wind back its data purchasing from Morningstar, Buttula says the two research houses have a good relationship which they have sought to improve in recent months.
“Research houses are talking with each other because they are of the equal opinion that there needs to be rationalisation in this area of the industry,” Buttula says.
Morningstar head of research Daisy Chee confirmed the ongoing relationship between the two groups but questioned the impact InvestorWeb’s plans would have on Morningstar.
