Morningstar acquires bond analytics firm InvestSoft Technology

Asset managers and advisers will crunch data to gain insights on fixed-income products.
MAY 26, 2016
Morningstar has acquired InvestSoft Technology, a fixed-income analytics software provider, it announced in a press release. The purchase was made in response to clients' requests for more fixed-income capabilities, said Frannie Besztery, head of data for Morningstar. Using InvestSoft, which has BondPro Fixed-Income Calculation Engine, asset managers, advisers and their clients will experience greater transparency and have better insights into bond funds, she said. Terms of the deal were not disclosed. InvestSoft's services fit well with current regulation movements, specifically the Department of Labor's fiduciary rule, which requires all advisers act in their clients' best interest on retirement accounts. "This actually helps with that, so that they are providing more transparency into what they're actually holding," Ms. Besztery said. "It is tying in with the overall mission of helping investors." The software provides more than 130 different calculations and models on bonds, depending on the complexity of the fund. Morningstar will integrate the technology onto its systems and rebrand InvestSoft under its own name. This is the latest acquisition in a spate of technology acquisitions the firm has made in the past two years. In March, Morningstar acquired RightPond, a data analytics provider on defined contribution and defined benefit plans. Previously, the firm had acquired portfolio rebalancer Total Rebalance Expert, financial wellness services provider HelloWallet, and data aggregator ByAllAccounts. Todd Roitfarb, chief executive of InvestSoft and formerly of Fidelity Investments, Merrill Lynch and Ernst and Young, will become head of fixed-income products for Morningstar. Al Roitfarb, his father and president of InvestSoft, will become head of architecture, fixed income for the firm.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.