Nucleus adds £300m assets in 'best-ever month' for inflows

Nucleus adds £300m assets in 'best-ever month' for inflows

Assets under administration on wrap platform Nucleus have increased 28.4 per cent year-on-year as the company recorded its "best-ever month" for inflows in March.

Assets stood at £18bn at the end of March up 28.4 per cent year-on-year and 3.1 per cent on the previous quarter.

Gross inflows in March were £637m with net flows standing at a £300, Nucleus said in a statement this morning (April 13).

Gross flows represented a 29.5 per cent increase on the previous quarter, which stood at £494m as sentiment continued to improve and a 9.8 per cent increase on the first quarter of 2020.

Net inflows were £301m, with March being Nucleus's second best month, up 44.7 per cent against the prior quarter and up 12.3 per cent on Q1 2020.


David Ferguson, Nucleus' founder and chief executive officer, said: "The first quarter has been incredibly strong for new business activity, reflecting the continued achievements of our people and validating our decision to maintain our investment programme through 2020.

"Q1 net inflows were substantially up on Q4 (and on the prior year) and, at over £300m for the first time in a single month, March was by far our best-ever month for inflows, a trend we'd hope to see continue as lockdown eases."

The wrap platform's customer numbers have also increased, by 0.7 per cent compared to the previous quarter and 3.1 per cent year-on-year.

Advisers actively using the platform increased by 2.2 per cent compared to the previous quarter and 1.9 per cent year-on-year.

Nucleus is in the middle of a takeover process by James Hay, though not all shareholders are happy. 

At the end of March, James Hay changed its takeover strategy to a takeover offer, directed at the shareholders, to ensure a smoother process.

According to James Hay, the tactic “offers greater certainty of execution” as it would be able to push the £145m deal through by passing a lower bar of approval.

Under the original strategy, James Hay had to achieve approval from at least 75 per cent of Nucleus shareholders. This new strategy means the firm only has to gain approval from 50 per cent of all shareholders. 

The board of Nucleus and Sanlam, both in favour of the sale, hold over 50 per cent of the company between them.

Meanwhile Nucleus said it has also seen the full rollout of its model portfolio service, Nucleus IMX, following a successful soft launch period in the second quarter of 2020.

Ruth Gillbe is a freelance reporter for FTAdviser