Nucleus assets top £15bn but net flows slow

David Ferguson

Edinburgh-based funds platform Nucleus Financial Group on Friday gave an update on its assets under administration (AUA) for the three months to June 30, 2019. 

Nucleus Financial said its assets under administration stood at £15.3 billlion, up 6.9% over Q2 2018 and 3.9% on the previous quarter.

It said advisers actively using the platform increased to 1,383, up 1.9% year-on-year, and customer numbers rose to 95,657, up 5.5% year-on-year and 1.6% over the previous quarter.

However, net flows were down on both the previous quarter and year on year at £111 million, compared to £134 million at the end of March and £315 million at the same time last year.

Nucleus CEO David Ferguson said: “Momentum in the business has continued in the second quarter with AUA increasing around 7% year-on-year compared to a FTSE All-Share decrease of 3.5% in the same period.

“Gross inflows increased by 4.7% on the previous quarter which is pleasing against a backdrop of unsettled market conditions driven by ongoing political and economic uncertainty, which is likely to continue into Q3, and 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.”