NucleusOct 23 2020

Nucleus recoups pandemic losses

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Nucleus recoups pandemic losses
Credit: Dominic Lipinski

Nucleus has recouped the funds it lost during the coronavirus-induced market crashes, with its assets under administration now level with what they were at the start of 2020. 

The wrap platform’s quarterly trading update, published today (October 23), showed its assets had increased 1.8 per cent on the previous quarter to sit at £16bn at the end of September.

This was equal to the assets recorded in January and up 2.6 per cent year-on-year.

Advisers placed £82m with the platform in the three months to September, less than the £111m they had invested with Nucleus in the same time period in 2019.

However, inflows were up in the nine months to September. From January to September 30, Nucleus saw £515m of inflows — 44 per cent more than the £356m measured the year before.

The results show the platform experienced £553m of negative market movements over the nine months as the coronavirus crisis saw global markets tumble. The FTSE All-Share is down 22 per cent since the start of the year.

David Ferguson, chief executive, said: "Covid-19 looks set to dominate our lives for at least the remainder of the year and is likely to have a continued impact for a time to come. 

"Our focus throughout the pandemic has been to ensure we are well set for the months and years to come, concentrating on the things that matter to our business that are within our control. This has meant a commitment to continuing to invest in the platform.”

Last month Stuart Geard, chief financial officer at Nucleus, told FTAdviser the adviser platform had a “strategy to become the most technology enabled platform” by investing £3m a year into its technology department.

The platform recently introduced e-signatures and launched its discretionary fund management service, Nucleus IMX.

Mr Ferguson added: "While the future impact of the Covid-19 crisis remains unknown, there has perhaps never been more of a pressing need for high-quality financial planning, and as such, we remain positive about the long-term future of the sector."

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