Consortium of tech, FS giants launches asset management platform HUB

By Sunniva Kolostyak

The companies PIMCO, Man Group, IHS Markit, State Street, Microsoft and McKinsey & Company have announced plans to form a new technology-led company, called HUB, for cloud-based asset management operations.

With a partnership and undisclosed financial terms, the companies have formed HUB and a greenfield platform to transform asset managers’ operations tools by providing flexible and modular solutions for middle- and back-office – developed on Microsoft Azure cloud.

Asset managers will be able to deliver innovative solutions to their clients both now and in the future, with a digital operating model which reduces costs and mitigates risks.

Emmanuel Roman, CEO of PIMCO, explained that HUB will combine modern technology and infrastructure as well as feed data to every part of its business, including distribution and analytics. HUB’s ‘data-first’ approach will break down silos and friction between systems and data and improve efficiencies by connecting to third parties.

“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,” Roman said.

Also commenting, Lance Uggla, Chairman and CEO of IHS Markit, said: “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.”

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.”

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, concluded: “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 honoured to be a partner in this venture to support the creation of HUB.”