State Street and Pimco are among the companies that have founded HUB, a new, technology-led company that is building a cloud-based asset management operating platform.
The other founders of HUB are active investment management firm Man Group, IHS Markit, Microsoft and McKinsey & Co.
HUB has selected Microsoft as its technology platform provider to “empower HUB to develop” its asset management operating platform on Microsoft Azure cloud, the companies said Thursday.
The HUB 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,” they said.
The platform is being designed to “accelerate the move to a digital operating model enabling asset managers to deliver innovative solutions to their clients both now and in the future,” they added.
HUB will use a “data-first approach” the companies say will “break down silos and friction between systems and data.”
Franklin Templeton Partners With Vestwell
Franklin Templeton has teamed with digital recordkeeping platform Vestwell to build a managed account experience that the companies said Wednesday would “reset the bar on how advisors engage with clients.”
The managed account solution allows plan sponsors to rethink their default option by choosing a dynamic investment model for each employee, rather than a traditional single target-date series.
The new initiative combines Franklin Templeton’s proprietary Goals Optimization Engine methodology with Vestwell’s recordkeeping infrastructure to create a fully digital, open-architecture and cost-effective managed account solution, the firms said in a joint announcement.
The offering will be available natively within Vestwell’s platform, providing the ability to automatically enroll participants into a personalized investment strategy, the companies said.
“By architecting it directly into Vestwell’s platform, Vestwell can capture data that provides participants a more personalized investment experience at each stage of their retirement journey,” the companies explained.