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Morningstar Australasia to Acquire Intech Pty Ltd, a leading provider of multi-manager and investment portfolio solutions in Sydney, from IOOF
Editorial & Research Team, Morningstar Asia Ltd. 2009-06-04

Morningstar Australasia Pty Limited, an Australian subsidiary of Morningstar, Inc. (NASDAQ: MORN), has entered into a definitive agreement to acquire Intech Pty Ltd, a leading provider of multi-manager and investment portfolio solutions in Sydney, Australia, from IOOF Transition 3 Pty Ltd., a subsidiary of IOOF Holdings Limited (ASX:IFL). The companies expect to complete the transaction during the next few months, subject to satisfaction of customary closing conditions. Terms were not disclosed.

Founded in 1989, Intech advises some of Australia’s major superannuation funds, institutional clients, and investment platforms. Through the Intech Investment Trusts, Intech manages a range of single sector, alternative strategy, and diversified investment portfolios. As of March 31, 2009, Intech had approximately A$4 billion (approximately U.S.$3.2 billion) in assets under management. Intech also has one of the leading separately managed account databases in Australia and offers the Intech Desktop Consultant, a research software product for institutions.

IOOF, with its registered office in Melbourne, acquired the Skandia Australia and Intech businesses from OM Group (UK) Limited (Old Mutual) in March 2009. The IOOF and Australian Wealth Management businesses merged in April 2009.

 “Our acquisition of Intech supports one of Morningstar’s key growth strategies, which is to become a global leader in funds-of-funds investment management,” said Andrew Bird, Chief Executive Officer of Morningstar Australasia. “Morningstar is already a significant provider of investment management and consulting services through Morningstar Associates and Ibbotson Associates, with more than U.S.$63 billion (approximately A$79 billion) in assets under advisement. We’re committed to building this business and providing stability to Intech’s clients. By becoming part of the Morningstar family of companies, Intech will have access to Morningstar’s investment consulting expertise and network of research analysts around the globe.”

Chris Kelaher, managing director of IOOF Holdings Limited, said, “The sale of Intech allows IOOF to focus on its core competencies of superannuation administration, investment management, and financial planning through a vertically integrated wealth management model. We expect a smooth transition, with Intech’s investment team continuing to provide the high-quality strategic advice and service they are known for. We believe Intech’s clients will benefit from the experience and resources of a global firm like Morningstar.”

Intech has approximately 35 employees in Australia. John Gethin-Jones, Chief Executive Officer, will continue to run the business until the acquisition is completed. At that time, Anthony Serhan, Head of Research for Morningstar Australasia, will oversee the business.
 

About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of Internet, software, and print-based products and services for approximately 6.5 million individual investors, 260,000 financial advisors, and 3,300 institutional clients. Morningstar provides data on more than 300,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 4 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. The company has operations in 19 countries and minority ownership positions in companies based in three other countries.

Morningstar established its operations in Australia in 1999. The company’s products and services include a local version of Advisor Workstation, the morningstar.com.au Web site for retail investors, stock research software, trade magazines and newsletters, widely distributed fund and share datafeeds, and investment consulting services. In 2006, Morningstar acquired Aspect Huntley Pty Limited, a leading provider of equity information, research, and financial trade publishing in Australia.

About Morningstar Asia
Morningstar Asia was established in April 2000 and has expanded its businesses into Japan, Korea, India, Mainland China, Taiwan, Singapore and Hong Kong. Morningstar Asia not only offer timely information on mutual funds, but also insightful analyses, unbiased fund ratings, and sophisticated analytic tools to help both individual and professional investors make more intelligent investment decisions. Morningstar Asia does not own, operate, or hold any interest in mutual funds, stocks, or insurance products, ensuring its independence and objectivity.

About IOOF Holdings Limited
The IOOF Group is an Australian financial services provider specializing in superannuation management and administration, investment management, and financial advice. In April 2009, the IOOF and Australian Wealth Management businesses merged under IOOF Holdings, creating a combined business with a complete and diverse range of wealth management solutions for its 700,000 clients. The combined group has more than A$85 billion in Funds Under Management, Administration, Advice and Supervision (FUMAS) and operates throughout Australia. IOOF Holdings listed on the Australian Securities Exchange in 2003.


 
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jessie.yung@morningstar.com