Nucleus profits leap 46% on swelling AUA

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Nucleus has boosted assets under administration by 25% year-on-year in the third quarter after a strong summer for gross inflows.

The wrap reported AUA of £7.5bn at the end of the quarter. Net inflows for Q3 were £378m and gross inflows £513m. Gross inflows for the nine months to the end of September rose 15% on the same period last year, totalling £1.5bn.

Operating profits also jumped by 46%, to £1.9m. This was in part thanks to a 25% rise in turnover during the quarter, compared to the same time last year.

The growth comes after a strong summer for Nucleus, including a record July for gross inflows.

Chief executive David Ferguson said the firm is “well placed” to grow market share in 2015: “I am proud we have been able to retain our position as the second fastest growing UK adviser platform.

“The combination of established momentum, the impending changes to the retirement market and the overdue ban on payments from fund managers to platforms gives us a lot to look forward to.”

Nucleus embarked on a major technological upgrade earlier this year, when it adopted the Sonata software.

It recently recruited executive director of Adam & Company Doug Heron as its new chief financial officer and Axa Elevate chief operating officer Andrew Smith as its chief technology officer.

The two senior hires mean the wrap will enter the new year in its “strongest position ever”, Ferguson added.

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