MSCI to acquire Compass to boost multi-asset indexes

MSCI has agreed to buy Compass Financial Technologies, expanding its ability to calculate and customise multi-asset and alternative indexes, including those referencing commodities and cryptocurrencies.

The deal adds Compass's index calculation platform to MSCI's index business. MSCI expects the combination to broaden coverage across asset classes and meet investor demand for more tailored index strategies.

Index providers sit at the centre of the market for benchmarks and index-linked products. Asset managers and banks use indexes to track performance, design systematic strategies, and structure investment products. Multi-asset indexes have grown in prominence as investors look to manage risk across portfolios that blend traditional markets with newer exposures.

Compass focuses on index calculation and customisation. With its platform, MSCI expects to create and calculate more complex multi-asset indexes that integrate global equities, fixed income, commodities, digital assets, currencies, and derivatives.

MSCI also highlighted the ability to produce custom indexes with derivative layers. Derivative overlays can change an index's risk and return profile by embedding features such as option-based payoffs or rules referencing futures and forwards. These structures are used in products designed for volatility control, income generation, or targeted exposures across markets.

Product expansion

MSCI framed the deal as part of a broader expansion of its index operations, citing rising demand for sophisticated index designs that span asset classes and incorporate alternative instruments.

It said a wider set of instruments and structures will give investors more choice when benchmarking risk and performance, and noted the use of indexes in investible products and portfolio construction.

The transaction also addresses continuity for existing arrangements. Compass has calculated some MSCI indexes, and MSCI said the acquisition will bring those calculations in-house for the long term.

"Investor strategies are evolving fast, and we are committed to ensuring our index offering evolves in lockstep with our clients' needs. Compass has been a trusted partner for MSCI. This acquisition further secures the long-term continuity of MSCI indexes calculated by Compass, while unlocking new opportunities for innovation across both traditional and alternative asset classes," said Jana Haines, MSCI's Head of Index.

Compass has operated as an index services provider and built its calculation platform over the past eight years, according to its Chief Executive. The platform will be integrated into MSCI's operations.

"Over the past eight years, Compass has developed an advanced innovation-driven index calculation platform. This capability is being integrated to enable MSCI to scale more rapidly, broaden its multi-asset, alternative and highly-customized index offerings and further strengthen its leadership in index innovation," said Guillaume Le Fur, CEO at Compass Financial Technologies .

Earlier deal

MSCI described the purchase as complementary to its 2024 acquisition of Foxberry. Foxberry is known for index design and analytics tools used by institutions to build and test index methodologies. Together, the businesses combine design tools with calculation infrastructure under one roof.

MSCI said the combined businesses will strengthen its ability to deliver end-to-end work on complex, customised cross-asset indexes, with services operating within its governance and operational framework.

Governance has become a more visible theme for index providers as more investment products track rules-based benchmarks. For multi-asset and derivative-based indexes, operational controls matter because calculations can involve multiple data sources, corporate actions, and contract roll schedules. Market participants also scrutinise how providers handle methodology changes and oversight for custom benchmarks.

Financial details

The acquisition continues a pattern of consolidation in market data and index services. Large providers have sought to expand both the range of asset classes covered and the tools available for clients seeking bespoke benchmarks. Demand has also risen for indexes that add digital assets and commodity exposures alongside conventional allocations.

MSCI said integrating Compass will extend its reach across asset classes, with an emphasis on multi-asset, alternative, and customised indexes.