Northern Trust has reached an agreement to take an equity stake in Essentia Analytics, Ltd., a provider of behavioral analytics and consulting services that utilises a cloud-based platform to bring together historical data and behavioral science to identify and address biases in thinking that impact investment performance. The addition of Essentia behavioral analytics solutions is an extension of Northern Trust Whole Office, a strategy that facilitates client access to new technologies, services and solutions across the investment lifecycle.
Essentia Analytics combines data analytics, client-driven nudges and specialist behavioral coaching to provide a feedback loop for active investment decisions. It helps investment teams understand where and why they succeed and where their blind spots are, and delivers the framework to enable a cycle of continuous improvement. Earlier this year Northern Trust took a stake in Equity Data Science, a cloud-based analytics platform that provides decision support tools to asset managers for idea generation, portfolio construction and risk management.