TIDMNUC
RNS Number : 9412T
Nucleus Financial Group PLC
24 July 2020
24 July 2020
Nucleus Financial Group plc
('Nucleus' or the 'Company')
Q2 2020 AUA update
Assets under administration increase 13.1% on previous quarter
to GBP15.8bn
Nucleus (AIM: NUC), a leading independent wrap platform
provider, today publishes an update on its assets under
administration (AUA) in respect of the three months to 30 June
2020.
Despite the impact of Covid-19 on market volatility, the Company
has continued to grow AUA, which stood at GBP15.8bn as at 30 June
2020, up 13.1% on the previous quarter and 3.2% year-on-year. By
comparison, the FTSE All-Share Index increased 9.8% on the last
quarter and fell by 15.9% year-on-year.
Highlights
- AUA increased to GBP15.8bn, an increase of 13.1% on the
previous quarter, driven by the partial market recovery, and up
3.2% year-on-year.
- Gross inflows of GBP384m were achieved in Q2, a reduction on
the previous quarter as a consequence of the Covid-19 pandemic.
Despite this, gross inflows for H1 increased by 1.0%
year-on-year.
- Outflows from the platform reduced by 41.9% in Q2 2020
compared to Q2 2019 and by 25.1% for H1 2020 compared to H1
2019.
- Net inflows for Q2 2020 increased by 48.6% year-on-year and H1
2020 net flows increased by 76.7% year-on-year to GBP433m.
- Advisers actively using the platform increased by 3.3%
year-on-year to 1,428 and remained at similar levels to Q1.
- Customer numbers increased by 4.3% year-on-year to 99,797 in
Q2 2020 and broke 100,000 in early July.
AUA and inflows
Quarter Quarter H1 H1
ended ended ended ended
30 June 30 June 30 June 30 June
2020 2019 2020 2019
GBPm GBPm GBPm GBPm
--------- --------- ---------
Opening AUA 13,986 14,753 16,141 13,884
Inflows 384 488 964 954
Outflows (219) (377) (531) (709)
Net flows 165 111 433 245
Market movements 1,674 468 (749) 1,203
Closing AUA 15,825 15,332 15,825 15,332
Daily average AUA 15,112 15,047 15,374 14,725
--------- --------- ---------
David Ferguson, Nucleus' founder and CEO, commented:
"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. The health and well-being of our staff
remain our highest priority, and we made an early and decisive move
to have all our people switch to home working. The platform has
remained fully operational throughout, and all of our phone lines
and messaging systems were switched seamlessly without any downtime
or loss of service to advisers."
"Markets were particularly volatile in the first few weeks of
the crisis before recovering some ground and stabilising over the
period. Our AUA is more or less back to the level we started the
year at GBP15.8bn compared to GBP16.1bn, helped by a 13.1% increase
in assets under administration in Q2 over Q1. At the same time,
while gross inflows are down on the prior quarter, net inflows have
held up well with a 48.6% year-on-year increase in Q2. I'm
especially pleased that, building on a positive first quarter, net
inflows increased by 76.7% year-on-year for H1."
"Our expedited move to accepting scanned documents ensured
advisers could quickly adapt to the lockdown situation and helped
minimise any friction in the new business process. We continue to
make very good progress across the business despite the lockdown
and have continued to invest in the proposition throughout the
period, including our new discretionary managed portfolio solution,
IMX, which I expect us to deliver in the coming weeks."
"While the future impact of the Covid-19 crisis is unknown, we
remain positive about the long-term future of the sector. As such,
we continue to invest in our people, our platform and our
proposition, to ensure we deliver improved service, engagement with
users and resilience."
Historical flows and AUA data by quarter
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
----------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Opening
AUA 12,401 12,889 13,577 13,527 14,339 14,693 13,884 14,753 15,332 15,697 16,141 13,986
Inflows 687 597 665 600 563 462 466 488 490 497 580 384
Outflows (261) (205) (254) (285) (281) (277) (332) (377) (379) (344) (312) (219)
Net flows 426 392 411 315 282 185 134 111 111 153 268 165
Market
movements 62 296 (461) 497 72 (994) 735 468 254 291 (2423) 1,674
Closing
AUA 12,889 13,577 13,527 14,339 14,693 13,884 14,753 15,332 15,697 16,141 13,986 15,825
Daily
average
AUA 12,715 13,313 13,609 14,086 14,585 14,202 14,399 15,047 15,552 15,704 15,636 15,112
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Ends
For further information please contact:
Nucleus
David Ferguson, CEO Tel: +44 (0)13 1226 9800
Stuart Geard, Chief Financial Officer
Shore Capital (Nominated Adviser and Broker)
Hugh Morgan Tel: +44 (0)20 7408 4090
Edward Mansfield
Daniel Bush
Camarco (Media enquiries)
Jennifer Renwick Tel: +44 (0)20 3757 4994
Jake Thomas
Notes to Editors
About Nucleus
Nucleus is a wrap platform founded in 2006 by advisers committed
to altering the balance of power in the industry by putting the
customer centre stage. It provides independent wrap platform
services to 1,428 active adviser users and works with more than 900
financial adviser firms as at 30 June 2020. It is responsible for
AUA of GBP15.8bn on behalf of more than 99,000 customers.
The multi award-winning platform offers a range of custody,
trading, payment, reporting, fee-handling, research and integration
services across a variety of tax wrappers and more than 6,500 asset
choices including cash, OEICs, unit trusts, offshore funds,
structured products and listed securities, including ETFs and
investment trusts. The platform currently facilitates over 1.1
million customer account transactions on average per month.
Nucleus has been awarded a 5-star service rating at the 2019
Financial Adviser Awards and won CoreData's 'Best medium sized
platform' for 2019 (and the last eight years), the Schroders
'Platform of the Year' award for 2016, 2017 and 2018 and won 'Best
Platform' and 'Platform Innovation' at the 2018 Money Marketing
Awards.
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END
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