Q: How do I compare the performance of Nucleus Wealth to other investment managers?

When comparing Nucleus Wealth to other Super funds, you should consider risk, performance, and other factors such as transparency, ability to tailor your investment portfolio, access to advisers, and the mindset behind your portfolio’s investment management, amongst other things. 

It’s also important to compare apples with apples, which means considering the different risk management strategies of the investment managers. 

We urge our clients to take care in comparing dissimilar investments. For example, a client invested in one of our multi-asset Tactical portfolios might, in error, choose to compare their performance to the ASX200 (the top 200 companies on the Australian share market). It’s quite common for clients to do this. But the risks of the two are completely different, and so there is no reason the performance of the two should be the same or even related.  

For example in February/March 2020, this meant that Nucleus Wealth’s Tactical portfolio clients didn’t experience the 35% or so decline that the ASX200 did over a 3 week period. This being said, Nucleus Wealth was conservatively positioned for much of 2020, based on the uncertainty until November 2020, when we started to get clarity.  From November 2020, we saw the results of the US election, COVID-19 vaccine approvals and subsequent rollout, and strong economic/employment data. This increased our confidence in the economic outlook, and our portfolios are now much more aggressively positioned.