Nucleus is to launch its discretionary managed portfolio service “in the coming weeks”, slightly later than initially planned.
In the wrap platform’s quarterly update, published today (July 24), its chief executive David Ferguson said the firm had continued to invest in its offering throughout the coronavirus crisis and expected to deliver the DFM service, named IMX, in a matter of weeks.
Initially announced in April, Nucleus IMX is a managed portfolio solution designed “specifically to improve value for money” in asset management.
It was supposed to be launched in the first half of 2020.
Nucleus has previously said it hopes the service will “bolster” its revenue, attract new users and create other product opportunities.
Today’s results also show the platform’s asset growth had been driven by the market recovery in Q2.
Nucleus’s assets under administration increased 13 per cent to £15.8bn in the three months to June 30, primarily driven by £1.6bn of positive market movements.
It also saw positive inflows of £165m in Q2 — 49 per cent more than the £111m of net inflows recorded for the same period last year.
Throughout the first half of 2020, Nucleus saw £433m of positive inflows. This was almost 80 per cent higher than the £245m measured for the first six months of 2019.
The amount of funds being pumped into the Nucleus platform by advisers had slowed throughout 2019, with just £503m placed with the platform in the year to December.
By comparison, advisers had placed more than double that amount (£1.2bn) with Nucleus in 2018.
Mr Ferguson has previously blamed the continuing trend of advice firm consolidation for the dent in inflows, but the impact of this on the platform seems to be easing.
The number of advisers actively using the platform also increased by 3.3 per cent year-on-year to 1,430 in Q2 while customer numbers jumped by 4.3 per cent compared with last year, to 99,800.
By early July, the number of Nucleus customers broke 100,000.
Mr Ferguson 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.”
He added Nucleus remained positive about the long-term future of the sector and the company would continue to invest in its “people, platform and proposition”.
imogen.tew@ft.com
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