A group of asset managers including Pimco and State Street are to form a technology company with Microsoft to “transform the industry’s operating model”.
Asset managers Pimco, Man Group and State Street will work with IHS Markit, McKinsey & Company and Microsoft to form Hub, a company that will build a cloud-based asset management operating platform.
The firms selected Microsoft as Hub's technology platform provider and the company – predominantly based in London - will develop the technology on Microsoft’s Azure cloud platform.
Hub is intended to break down walls between different systems and data, the firms said. There will be reductions in the costs associated with the usage of numerous legacy systems in asset management. Also, third-party providers will be used to improve efficiencies, while the platform will span middle and back office functions and mitigate risks.
Emmanuel Roman, chief executive 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.”
Luke Ellis, chief executive of Man Group, said: “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.”
Hub will be supported by State Street’s custody platforms and by its Alpha system.
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