Momentum building

Nucleus sees growth in assets and inflows in second quarter

David Ferguson

David Ferguson: pleased

Nucleus, the financial wrap platform provider, said it continues to grow assets under administration which stood at £15.3 billion at the end of the second quarter, a rise of 6.9% over Q2 2018 and 3.9% on the previous quarter.

By comparison, the FTSE All-Share Index fell by 3.5% year-on-year and increased 2.0% over the quarter.

In an update, the Edinburgh-based company said gross inflows increased for the second consecutive quarter and were up 4.7% on the previous quarter.

Advisers actively using the platform increased to 1,383, up 1.9% year-on-year while customer numbers rose to 95,657, an increase of 5.5% year-on-year and 1.6% over the previous quarter.

Continued investment in the core platform proposition in Q2 included improved pensions and drawdown capabilities including automated phased drawdown; successful transition to a new stockbroking service bringing lower trading costs for clients, improved operational efficiencies and greater flexibility to improve future trading functionality; and regulatory compliance with new Mifid II statement of costs and charges.

David Ferguson, Nucleus’ founder and CEO, said: “Momentum in the business has continued in the second quarter.”

He said the increase in gross inflows “is pleasing against a backdrop of unsettled market conditions driven by ongoing political and economic uncertainty, which is likely to continue into Q3.

“We achieved our second consecutive quarter of improving gross inflows. Outflows remain higher than expected, primarily due to increased outflows from a small number of firms that have been acquired by consolidators.

“The change to our technology model in November 2018 increased our change velocity. In Q2 we have delivered a substantially improved pensions and drawdown capability, alongside a new stockbroking service that brings significantly reduced trading costs for clients, and completed our Mifid II regulatory costs and charges disclosure.

“Having delivered a number of propositional changes in the first half of the year, we intend to continue to build on this momentum with a series of further enhancements that will improve service delivery and operational resilience.”

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