The Hub24 Ltd (ASX: HUB) share price was trading in the red this afternoon despite the company announcing an update on its strategic alliance with Clearview Wealth Ltd (ASX: CVW).
At the close of trade, the investment platform provider's shares were down 2.48%, trading at $23.18.
What did Hub24 announce?
In its release, Hub24 advised it has completed the wrap platform development and bulk transition from Clearview. This transfer entails the administration services of $1.4 billion funds under administration (FUA) to Hub24. The strategic wrap platform consists of ClearView's WealthSolutions Super, LifeSolutions Super, and WealthSolutions investor directed portfolio service (IDPS).
Hub24 said that both parties developed a private label IDPS and Super wrap solution to provide investment continuity and minimise customer disruption. As a result, most of the FUA has moved across to the private label from Clearview's administrator. Both advisors and customers can now access the new product through the Hub24 platform.
Last year, Clearview's WealthSolutions2 white label for IDPS and Super was launched onto Hub24's network. Since then, 14 managed portfolios have been made available to advisors using the Hub24 retail offer.
Words from the management
Hub24 managing director Andrew Alcock said:
HUB24's capability to seamlessly deliver large scale transitions has once again been proven. The teams across HUB24 and ClearView have been working together to achieve this for ClearView's customers following the launch of the white label last year. We look forward to continuing to work with ClearView on product development initiatives going forward.
ClearView managing director Simon Swanson went on to add:
ClearView is in the middle of a multi-year transformation program to ensure that we remain easy to do business with and continue to deliver high quality, fit-for-purpose life insurance, wealth management and financial advice solutions. We look forward to continuing our relationship with HUB24.
About the Hub24 share price
The Hub24 share price has accelerated over the last 12 months, delivering gains of more than 120%. Hub24 shares fell to a 52-week low of $9.01 during late June before moving on an upwards trajectory. The company reached an all-time high of $27.80 this year and is within striking distance of breaking that new record again.
Based on the current Hub24 share price, the company commands a market capitalisation of around $1.5 billion.
