Nucleus increases AUA to £15.3bn

Platform costsConsolidator acquisitions have resulted in “higher than expected” outflows for platform provider Nucleus although the company’s assets under administration have grown to £15.3bn.

In a trading update for the three months to 30 June 2019, AUA were up 3.9 per cent on the previous quarter and 6.9 per cent from Q2 last year.

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Gross inflows for Nucleus increased for the second consecutive quarter and were up 4.7 per cent on the previous quarter.

The company also increased the number of advisers “actively using” the platform by 1.9 per cent year on year to 1,383.

Customer numbers rose to 95,657, an increase of 1.6 per cent from the previous quarter and 5.5 per cent compared to last year.

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Nucleus says it has continued to invest in the platform proposition. It cited improvements made in the second quarter on pensions and drawdown capabilities including automated phased drawdown as well as the “successful transition” to a new stockbroking service.

Nucleus founder and chief executive David Ferguson says: “Momentum in the business has continued in the second quarter with AUA increasing around 7 per cent year on year compared to a FTSE All-Share decrease of 3.5 per cent in the same period. Gross inflows increased by 4.7 per cent 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.”

AUA and inflows

Quarter ended
30 June 2019

Quarter ended

31 March 2019

Quarter ended

30 June 2018

H1 ended

30 June 2019

H1 ended
30 June 2018
£m £m £m £m £m
Opening AUA 14,753 13,884 13,527 13,884 13,577
Inflows 488 466 600 955 1,265
Outflows (377) (332) (285) (709) (539)
Net flows 111 134 315 246 726
Market movements 468 735 497 1,202 36
Closing AUA 15,332 14,753 14,339 15,332 14,339
Daily average AUA 15,047 14,399 14,086 14,725 13,849

Data from Nucleus 

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