Northern Trust Announces Strategic Investment in EDS, Advancing Whole Office Strategy

Rhea-AI Summary

Northern Trust (Nasdaq: NTRS) has announced an agreement to acquire an equity stake in Equity Data Science, Inc. (EDS), enhancing its technology offerings for institutional investors. This partnership integrates EDS's analytics platform with Northern Trust’s systems to provide advanced decision support tools for asset managers, focusing on research management, idea generation, portfolio optimization, and risk management. According to Pete Cherecwich, Northern Trust aims to help clients leverage data for better investment decisions, striving to increase transparency and efficiency in asset management.

Positive

• Equity stake acquisition in Equity Data Science strengthens technological capabilities.
• Integration of EDS's decision support tools enhances client service.
• Focus on maximizing data value may lead to improved client performance.

Negative

• None.

As part of its continuing strategy to provide integrated services and technology across the investment lifecycle, Northern Trust (Nasdaq: NTRS) has reached an agreement to take an equity stake in Equity Data Science, Inc. (EDS), a cloud-based analytics platform that provides decision support tools to asset managers for idea generation, portfolio construction and risk management.

The deal integrates EDS decision support tools with Northern Trust’s core technology platforms to provide highly specialized and innovative solutions to the most sophisticated institutional investors across the globe. The investment is an extension of Northern Trust Whole Office, an approach that integrates Northern Trust’s architecture alongside innovative partners, facilitating client access to new technologies, services and solutions.

“Northern Trust continues to focus on helping clients maximize the value of their data in order to optimize performance,” said Pete Cherecwich, President of Corporate & Institutional Services at Northern Trust. “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.”

The EDS decision-support and analytics platform is designed to support the unique processes of active, institutional investment managers. Capabilities include:

• Research Management
• Idea Generation Screening
• Portfolio Construction and Optimization
• Risk Management
• Order Generation

“We look forward to the opportunity to work with Northern Trust to bring greater productivity and performance to the front office,” said Greg McCall, President and Co-Founder at Equity Data Science. “As asset managers seek to maximize alpha, it is crucial that they are able to streamline processes, reduce errors, and make faster and more informed decisions."

“We are excited about the announcement between two of our trusted partners, Equity Data Science (EDS) and Northern Trust,” said Brian Mann, Principal, Chief Data Officer & Director of Operations for Pzena Investments. “EDS has helped us build additional insight into our investment process, while we have long valued Northern Trust’s support as we grow our business.”

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 22 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2020, Northern Trust had assets under custody/administration of US$14.5 trillion, and assets under management of US$1.4 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Please visit our website or follow us on Twitter.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Please read our global and regulatory information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210210005296/en/

FAQ

What is Northern Trust’s recent investment in Equity Data Science about?

Northern Trust has acquired an equity stake in Equity Data Science, aiming to enhance its technology offerings for institutional investors.

How does Northern Trust plan to use the EDS analytics platform?

The EDS analytics platform will be integrated into Northern Trust’s systems to provide advanced decision support tools focused on asset management processes.

What are the key features of the EDS decision support tools?

The EDS tools include research management, idea generation, portfolio construction, and risk management functionalities.

What is the expected benefit of Northern Trust's partnership with EDS?

The partnership is expected to help institutional investors maximize data utilization, improve decision-making efficiency, and enhance overall investment performance.