Fueling Investment Decisions: The Data-Driven Advantage

Written by Paul Fahey, head of client consulting and strategic partnerships at Northern Trust, and Greg McCall, co-founder, president and CFO at Equity Data Science.

In an era marked by rapid technological innovation, investment professionals find themselves navigating a landscape shaped less by intuition and more by the intelligent orchestration of data. As markets evolve with unprecedented velocity, the ability to harness, interpret, and act upon complex information has become the bedrock of success. Data-driven decision making is no longer a competitive edge—it is an imperative for those seeking to thrive in the global financial ecosystem.

A recent 2025 Northern Trust peer study of 180 global asset owners, Asset Owners in Focus, highlights how data agility and analytics capabilities have become essential components of investment strategy, going beyond operational efficiency to drive meaningful growth and differentiation.

As institutional investors increasingly embrace advanced data tools and technology in their investment decision-making, they will expect the same from their asset managers.

Institutional Investors Are Setting the Pace

According to the study, 32% of institutional investors view securing timely, accurate, and relevant data for agile decision-making as their top internal priority. This shift opens up new possibilities for asset managers who can demonstrate exceptional data quality and responsiveness.

According to the study, institutional investors are also looking for:

· Investment analytics support (52%)

· Data reporting solutions (47%)

· Better integration of applications (43%)

· Enhanced risk analytics and more real-time data (36%)

These priorities reflect a demand for insightful, transparent, and proactive investment processes—enabling asset managers to shine by delivering outstanding results and client experiences.

Digitizing the Investment Lifecycle

To fully realize this potential, asset managers have the opportunity to reimagine how they manage data, research, and decision-making. Embracing modern investment data science tools allows managers to not only meet but surpass evolving client needs, setting themselves apart in a dynamic marketplace. These tools drive smarter, more agile investment processes—fueling innovation and client success.

For example, managers can:

· Accelerate idea generation by harnessing inputs from diverse sources, enabling rapid screening and prioritization of opportunities.

· Centralize and streamline research with integrated dashboards, making insights accessible and actionable for teams anywhere, anytime.

· Optimize portfolio construction using advanced simulation engines, empowering teams to make informed sizing and allocation decisions.

· Enhance risk management through real-time attribution and scenario analysis, proactively strengthening portfolios and client trust.

· Deliver tailored performance insights with flexible frameworks and behavioral analytics, spotlighting repeatable strengths and opportunities for growth.

These capabilities not only help elevate internal decision-making but also foster more collaborative and transparent client partnerships.

Meeting Evolving Expectations

With 51% of institutional investors planning to boost spending on portfolio analytics tools, the message is clear: data has become a strategic asset at the heart of investment success. Asset managers can embrace this momentum by:

· Delivering real-time insights that empower client action and confidence

· Integrating collaborative research and forecasting tools to enrich investment workflows

· Providing custom reporting and attribution that align with each client’s unique goals

· Supporting transparent environments that encourage accountability and seamless teamwork

The Competitive Edge

As institutional investors continue to raise standards, asset managers are uniquely positioned to differentiate themselves—not only through performance, but through forward-thinking processes and client-centric innovation. By harnessing investment data science and modern analytics infrastructure, managers can deliver an agile, transparent, and personalized approach.

In today’s landscape, where data fuels progress, the ability to deliver insight with speed and clarity is not just an advantage—it’s a powerful opportunity for growth.

Learn More

Investment Data Science (IDS) and Equity Data Science (EDS) offer a curated suite of solutions that help institutions digitize their investment process—enabling faster, smarter, and more collaborative decision-making. To explore these capabilities, visit:

Investment Data Science | Northern Trust

Equity Data Science

Paul Fahey
Head of Client Consulting and Strategic Partnerships

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Fueling Investment Decisions: The Data-Driven Advantage

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