Northern Trust has reached an agreement to acquire an equity stake in cloud-based analytics platform Equity Data Science (EDS), which offers decision support tools to asset managers.
Financial details of the transaction were not shared.
The move follows the US-based asset manager’s ongoing strategy to offer integrated services and technology across its investment lifecycle.
As part of the deal, EDS decision support tools will be integrated with Northern Trust’s core technology platforms.
The EDS decision-support and analytics platform is designed to offer capabilities such as research management, idea generation screening, portfolio construction, and optimisation, risk management and order generation to institutional investment managers.
The move will enable Northern Trust to offer ‘specialised and innovative solutions’ to institutional investors across the globe.
Northern Trust president of Corporate and Institutional Services Pete Cherecwich said: “Institutional investors need to drive efficiency and transparency and embed data-driven feedback into their investment decision making. By partnering with EDS, we provide our clients with access to enhanced technology that helps them make the right, repeatable and measurable decisions in the quest to achieve alpha.”
EDS president and co-founder Greg McCall added: “We look forward to the opportunity to work with Northern Trust to bring greater productivity and performance to the front office.
“As asset managers seek to maximise alpha, it is crucial that they are able to streamline processes, reduce errors, and make faster and more informed decisions.”
The Whole Office strategy
The latest investment accelerates Northern Trust’s Whole Office strategy.
The strategy aims to facilitate client access to new technologies, services, and solutions by integrating its architecture alongside innovative partners.
The company serves asset managers, asset owners, investors, and third-party administrators.
Last week, Northern Trust joined forces with data provider IHS Markit to bolster its Whole Office strategy.
The partnership enables the integration of IHS Markit’s thinkFolio multi-asset class investment management platform with Northern Trust’s middle office outsourcing platform.