PIMCO, Man Group, IHS Markit, State Street, Microsoft and McKinsey Join Forces on New Asset Management Operating Platform
The formation of a new technology-led company, HUB, has been announced by PIMCO, Man Group, IHS Markit, State Street, Microsoft, and McKinsey. HUB aims to revolutionize asset managers' operations by providing a cloud-based operating platform on Microsoft Azure. This innovative platform will offer flexible solutions for middle and back office functions, reducing costs and improving efficiency. Emphasizing a 'data-first approach,' HUB intends to address operational challenges and enhance service delivery, although specific financial terms have not been disclosed.
- Formation of HUB aims to transform asset management operations.
- The platform is based on Microsoft Azure, ensuring robust technological support.
- Focus on reducing costs associated with legacy systems.
- Potential to improve operational efficiencies for asset managers.
- None.
PIMCO, Man Group, IHS Markit, State Street, Microsoft and McKinsey & Company today announced the intention to form a new technology-led company, HUB, to build a cloud-based operating platform aimed at transforming asset managers’ operations technology.
The company selected Microsoft as its technology platform provider to empower HUB to develop its asset management operating platform 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 “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, added “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, commented “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. We are excited to be part of this transformative joint venture that brings together the insights of our partners with IHS Markit’s commitment to enabling the success of the industry.”
Ron O’Hanley, Chairman and CEO of State Street, said “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.”
Judson Althoff, Executive Vice President of Microsoft’s Worldwide Commercial Business, commented “We are excited that HUB’s new asset management industry platform will be powered by Azure. By harnessing the Microsoft cloud with the HUB platform to deliver operational efficiencies to our clients, Microsoft continues to drive innovation in the broader capital markets industry ecosystem.”
Jared Moon, Senior Partner, McKinsey & Company, added “McKinsey is excited about the opportunity to bring industry insights on asset management and expertise from Leap by McKinsey, its business building practice to HUB. We believe this new platform for Asset Managers will create value for the industry and McKinsey is honored to be a partner in this venture to support the creation of HUB.”
Financial terms were not disclosed.
About HUB
HUB will be a new technology led company focused on providing flexible and modular infrastructure for asset managers’ middle and back office functions. HUB’s “data first approach” will break down silos and friction between systems and data by utilizing the latest cloud-based data technology and security. The platform will be designed and built in collaboration with PIMCO, Man Group, IHS Markit, State Street, Microsoft and McKinsey.
The HUB team comprises industry experts across data, technology and asset management, with strategic input and guidance from its partners. HUB will have its primary office in London.
IHS Markit is a registered trademark of IHS Markit Ltd. and/or its affiliates. All other company and product names may be trademarks of their respective owners © 2020 IHS Markit Ltd. All rights reserved.
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