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Nucleus pays out first ever dividend to advisers

Advisers in line for first payout since taking stakes in 2006

Nucleus has paid a £4.3m dividend to shareholders, the first since its launch in 2006.

The platform’s shareholders include investment and advice company Sanlam, individual advisers and advice firms, and its own staff and management.

The dividend equates to a payment of around £2.43 per ordinary share and has been paid from the company’s £15m cash reserves.

A statement says the dividend reflects a yield of 4.8 per cent and is a mix of an ordinary profit-based dividend and a one-off distribution of historic surplus reserves.

Nucleus chief executive David Ferguson says: “We are investing more than ever in the business and the product and even taking that into account and our regulatory capital obligations we felt it was right to reward the shareholders for backing us.”

He adds: “Following five consecutive years of increasing revenues and profitability that has seen the business become debt free with over £15m in cash reserves, Nucleus is better positioned than ever before to take advantage of the significant growth opportunities in the platform sector.”

Sanlam to offload £3.6m Nucleus shares

Nucleus reported 2017 first half gross inflows of £1.3bn and assets under administration of £12.8bn – a 44.8 per cent and 28 per cent increase, respectively.

In 2016, it recorded AUA of £11.4bn and 21 per cent increase in profit.

In June, the platform announced a reduction in charges for clients with portfolios over £500,000.

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  1. How are these shares/dividends supposed to be declared to clients? There is a clear conflict of interest if disclosure isn’t 100% and I can’t see how an IFA can get around that – restricted advisers should be fine if there is full disclosure. FCA?

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