PIMCO, Man Group, IHS Markit, and State Street are among firms forming a new London-based tech company, HUB, to build an operating platform for asset managers. The operating platform will be developed on Microsoft Azure cloud.
HUB’s greenfield platform will be built by asset managers to transform the industry’s operating model by providing flexible and modular solutions across middle and back office functions, all while reducing cost and mitigating risks. The platform will accelerate the move to a digital operating model enabling asset managers to deliver innovative solutions to their clients both now and in the future.
HUB’s “data-first approach” will break down silos and friction between systems and data. This greenfield solution will utilize the latest cloud-based data technology and security to transform middle and back office operating processes, reducing costs associated with supporting numerous legacy systems and improving efficiencies by connecting to third parties.
Emmanuel Roman, CEO of PIMCO, said in a statement: “Through this partnership, HUB will combine modern technology and infrastructure to streamline our middle and back office functions and feed data to every part of our business including distribution and analytics. This technology platform forms a core component of our broader strategy which combines technology with portfolio management and client service excellence to provide investors with investment solutions.”
Luke Ellis, CEO of Man Group, said in a statement: “Man Group has invested heavily in developing our own proprietary technology infrastructure for many years now. Collaborating on this initiative with such great partners has allowed us to leverage our expertise with a view to helping transform the asset management industry’s operational architecture, which ultimately allows for better servicing of clients’ needs.”
Lance Uggla, chairman and CEO of IHS Markit, said in a statement: “HUB represents a fantastic opportunity for the asset management industry to reimagine its operating model. With a greenfield approach to developing the platform, HUB will address many of the operational challenges facing asset managers today.”
Ron O’Hanley, chair and CEO of State Street, said in a statement: “HUB promises to bring innovative solutions to important investment industry challenges. State Street is excited to partner with PIMCO, Man Group, IHS Markit, Microsoft and McKinsey and we are committed to supporting HUB with our Alpha and custody platforms.”