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Platform beats market

Nucleus Financial ‘positive’ as assets rise sharply

David Ferguson

David Ferguson: ‘we remain positive’

Wrap platform Nucleus Financial said that despite the Covid-19 outbreak assets under administration (AUA) in the three months to 30 June grew 13.1% to £15.8bn on the previous quarter and 3.2% year on year.

This exceeded growth in the FTSE All-Share Index which saw a 9.8% rise on the last quarter and fell by 15.9% year-on-year.

Gross inflows at the Edinburgh-based firm of £384m were achieved in Q2, a reduction on the previous quarter as a consequence of the Covid-19 pandemic. Despite this, gross inflows for H1 increased by 1% year-on-year.

Outflows from the platform reduced by 41.9% in Q2 2020 compared to Q2 2019 and by 25.1% for H1 2020 compared to H1 2019.

Net inflows for Q2 2020 increased by 48.6% year-on-year and H1 2020 net flows increased by 76.7% year-on-year to £433m.

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Advisers actively using the platform increased by 3.3% year-on-year to 1,428 and remained at similar levels to Q1.

Customer numbers increased by 4.3% year-on-year to 99,797 in Q2 2020 and broke 100,000 in early July.

David Ferguson, Nucleus’ founder and CEO, said: “The Covid-19 pandemic has had a significant impact on all our lives over the last four months and will have a continued impact for a time to come. In this type of situation, we can only control our response to the circumstances, and I’m pleased with how the business has responded.

“The health and well-being of our staff remain our highest priority, and we made an early and decisive move to have all our people switch to home working.

“The platform has remained fully operational throughout, and all of our phone lines and messaging systems were switched seamlessly without any downtime or loss of service to advisers.

“Markets were particularly volatile in the first few weeks of the crisis before recovering some ground and stabilising over the period. Our AUA is more or less back to the level we started the year.

We continue to make good progress across the business despite the lockdown

– David Ferguson

“Our expedited move to accepting scanned documents ensured advisers could quickly adapt to the lockdown situation and helped minimise any friction in the new business process.

“We continue to make very good progress across the business despite the lockdown and have continued to invest in the proposition throughout the period, including our new discretionary managed portfolio solution, IMX, which I expect us to deliver in the coming weeks.”

“While the future impact of the Covid-19 crisis is unknown, we remain positive about the long-term future of the sector. As such, we continue to invest in our people, our platform and our proposition, to ensure we deliver improved service, engagement with users and resilience.”

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