Ferguson positive

Nucleus withstands pressures to report 13.1% AUA growth

David Ferguson

David Ferguson: ‘momentum continued’ (pic: Terry Murden)

Wrap platform Nucleus withstood shifts in the sector and wider uncertainty to increase its assets under administration (AUA) for the third quarter.

AUA rose 6.8% to £15.7 billion as at 30 September on the same period last year and by 13.1% year-to-date. The FTSE All-Share Index fell by 1.6% year-on-year and increased 10.5% year-to-date. 

Gross inflows increased for the third consecutive quarter to £490m while net inflows remain steady with both Q2 and Q3 net inflows at £111m.

Advisers actively using the platform increased 2.1% year-on-year to 1,38 and customer numbers increased 3.6% year-on-year to 95,373

The firm has continued to invest in its core product with the implementation of new functionality within its customer portal, ‘Nucleus Go’ and post the reporting period, the implementation of new paperless correspondence options for customers.

It said continued investment in platform development during Q4 is due to deliver new trading functionality, bulk switching capability, a faster payments service for withdrawals and new telephony infrastructure 

David Ferguson, Nucleus’ founder and CEO, commented: “Momentum has continued with AUA increasing over 13% year-to-date compared to a FTSE All-Share increase of 10.5% in the same period.

“Gross inflows increased, albeit marginally, for the third successive quarter against a backdrop of continued investor uncertainty.

“Outflows remain higher than normal but in line with expectations, and reflect primarily the ongoing impact of a small number of firms that have been acquired by consolidators.

We’re very positive on product development and developments completed in the quarter

– David Ferguson, CEO

“Net inflows remained stable at £111m and, as previously reported, we are in the early stages of a new partnership agreement with one IFA consolidator and are in continued discussions with others. We expect these new relationships to enhance resilience of net inflows while also presenting future growth opportunities.

“In September we held our eleventh annual conference where we welcomed over 300 delegates and confirmed our intention to continue investing in the platform proposition.

“We’re very positive on product development and developments completed in the quarter (or shortly after), included enhancements to our customer portal, Nucleus Go, and new paperless correspondence options for customers.

“We have significantly increased the velocity of our change programme this year. This planned and marked acceleration has continued into Q4 with a series of further enhancements.”

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