Nucleus Financial marks fifth anniversary by breaking £3bn barrier

EDINBURGH-BASED wrap provider Nucleus Financial is set to mark five years in business by breaking through the £3 billion assets under management barrier.

The firm is on course to hit the mark just ahead of its fifth anniversary in early July, following a surge in new business over the past year.

Nucleus, owned by its IFA membership, provides a wrap that allows advisers to manage their clients' investments in one account. It currently has more than 80 member firms and its workforce has almost doubled since March 2010, with more hires expected over the coming months.

The firm is targeting 4bn of assets under management by the close of 2011 and 25bn-30bn by the end of 2015. It believes it is well-placed to take advantage of new rules coming into force at the start of 2013 under the retail distribution review. The changes include a ban on commission payments to IFAs from product providers such as insurers, a move that Nucleus founder David Ferguson predicts will favour wraps.

Ferguson said: "We've now proven our model and are perfectly positioned to break into sustainable profitability later this year. December's successful funding round has given us a balance sheet which is consistent with our growth ambitions and which removes any lingering concerns about our financial viability.

"The market is massive and we're perfectly placed so it's all about cost-effective execution now."