Changing the Indexing Game

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Morningstar Indexes applies cutting-edge data, technology, and research as an accelerator for future success

In addition to keeping up with the evolving needs of investors, Morningstar Indexes is also a leading-edge advocate for them. The investor-focused leader in data and research supports individuals, institutions, wealth managers, and advisors in navigating investment opportunities across major asset classes, styles, and strategies. The company leverages their globally lauded parent company’s 35-plus years of integrity in financial services with their own two decades of indexing expertise.

The Indexes division shares Morningstar’s commitment to delivering unbiased insights and better customization, choice, and value for their clients. Their indexes draw on unique IP to unlock an extensive range of emerging opportunities while providing a robust institutional data platform for core investing.

Sumair Pervaiz

Sumair Pervaiz, Chief Technology Officer, leads global technology teams, overseeing large-scale, high-value projects that are pivotal to combining technology, excellence, and innovation to help Morningstar Indexes reach the next level of global growth. He draws on his 23 years of experience navigating the ever-evolving landscape of dynamic organizations to offer valuable insight, guidance, and leadership to drive growth and innovation. As a global transformational technology executive and team leader in financial data services, Pervaiz has held technology transformation leadership positions in several leading global companies, including Microsoft, Russell Investments, and London Stock Exchange Group (LSEG).

Sumair’s decision to leave the LSEG was led by personal conviction and a deep belief in the leadership of Morningstar Indexes President Ron Bundy. He saw the opportunity to join Morningstar Indexes as a chance to embark on an exhilarating journey. Inspired by Bundy's vision and guidance, the opportunity resonated with his own aspirations for a challenging and immensely fulfilling role. With unwavering determination, Pervaiz envisioned a cutting-edge index calculation engine fueled by technology and innovation. He aimed to build a robust infrastructure with a multitude of scalable and flexible microservices, setting the stage for Morningstar Indexes to enter an incredibly ambitious growth phase. Forging his own path, he wanted to push his limits but also contribute to the growth and success of a forward-thinking organization.

“I have a strong passion for innovation to drive scale and growth via automation and technology. At Morningstar Indexes we strive for operational excellence and are investing heavily to achieve that,” he said. “Morningstar’s commitment is demonstrated by its investment in people and attracting the best technology talent to support Indexes and broader Morningstar technology objectives. I think of Morningstar Indexes, as a well funded start-up business, with the strong backing of Morningstar Inc. which carries a strong reputation in the financial services industry,” Pervaiz noted.

“At the same time, this is not about innovation for the sake of innovation. It must make a difference for our clients,” he proclaimed. “We are passionate about building a culture focused on customer-centricity, brand authenticity, differentiation, and value.” He added that the success metrics driving the company’s organizational vision and objectives include a strong focus on globalization and expansion, people leadership, customer service, market relevancy, and sales results.

Morningstar Indexes draws on Morningstar’s heritage as an investor-focused leader in data and research. Their ability to draw unique intellectual property and research capabilities from Morningstar into their index methodologies makes them a standard bearer among today’s index providers. “We work closely with institutional investors, wealth managers, and advisors to develop truly differentiated solutions,” Pervaiz noted.

According to Pervaiz, Morningstar’s longstanding competitors in the indexing space are burdened by manual operational processes that they have inherited in a very slow-moving operational workflow. “Although Morningstar Indexes has been in the business for more than 20 years, I was hired to work on a green field, brand new, state-of-the-art platform, to calculate, produce, and distribute our Indexes to our clients – with the focus on operational excellence, client focus, and quality,” he stressed.

The 30-month multi-phase global project has had a vast array of moving parts and is nearing its completion.  The anticipated result will be an enhanced customer experience, better value to clients, and the ability to grow and scale their global business and client base more effectively and efficiently. Morningstar is planning to release the platform to production later this year.

When choosing key technology partners, the company’s critical considerations are focused on scale, quality, and ease of use, as well as a vendor’s ability to commit to and deliver around key milestones and quality standards. “Cloud providers like AWS and consulting partners like Hexaware have been strong partners to us,” he said.

As for the Morningstar culture and ways of working, Morningstar Indexes foster an open, informal, and flexible work environment that empowers employees to manage their responsibilities independently. Based on Glassdoor reviews, 87% of Morningstar employees would recommend working there to a friend. Employees also rated Morningstar 4.3 out of 5 for work life balance, 4.5 for culture and values, and 4.4 for career opportunities.

At Morningstar, every contribution has meaning and can drive change. “Across our 27 offices worldwide, we’re invested in fostering a community where talented, driven people can grow. Our entrepreneurial spirit and uncompromising ethics guide everything we do,” he said. “Everything we do ties back to our mission of empowering investor success.”

Bundy joined the company in 2019 and has been leading this extraordinary transformational period of growth for the global index provider ever since. His mission for the firm is to become one of the easiest Index providers to work with.

Pervaiz underscores the importance of heading into a bold future, with the understanding that meeting the needs of every Morningstar Indexes client is their driving imperative. As he put it, “Yes, we are one of the fastest growing global index providers, but it can’t be growth for the sake of growth. We will only be successful if our clients feel the success and can benefit from it.”