PIMCO, Man Group, IHS Markit, State Street, Microsoft and McKinsey are to join forces to form a technology-led company to develop a platform aimed at transforming asset managers’ operating model.
The company, which is to be called HUB, is set to use Microsoft Azure cloud for this greenfield technology platform.
The partners said the objective is to provide flexible and modular solutions across middle and back office function.
They believe that the platform will accelerate the move to a digital operating model enabling asset managers to deliver innovative solutions to their clients for today and in the future.
HUB will employ a” data-first approach” to break down silos and friction between systems. In addition, costs will be reduced while risks associated with supporting numerous legacy systems will be mitigated. It will also improve efficiencies by connecting to third parties.
Legacy systems and outdated technology are long standing challenges in the asset management industry and there have been several rallying calls over the years for the sector to automate and modernise.
“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,” according to Emmanuel Roman, CEO of Pimco.
He said, “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.”
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.”