Separately Managed Accounts – The most secure investment structure
Your investment with Nucleus Wealth is under the most secure structure.
Nucleus Wealth provides investments through market-leading investment structures that keep our client’s assets as safe as can be. These structures are called Separately Managed Accounts (SMAs) and can be set up in a variety of account types: from Individual to Joint, to Trust and Super. These are managed by our platform administrator, Praemium.
One of the benefits of these account types is how secure they are. Your assets are held in your own name with major global custodians JPMorgan (international securities), HSBC (Australian securities), and ANZ (AUD Cash). Nucleus Wealth serves as the model manager, instructing Praemium to make trades and manage your portfolio for you. Nucleus Wealth does not have any access to the funds of your separately managed account, or the ability to instruct the movement of those funds anywhere other than your bank account.
Are the assets safe with Custodians?
Yes. Client assets held with custodians are legally protected.
A custodian bank is a financial institution that holds clients’ securities (shares, bonds, etc.) for safekeeping. Custodians hold client assets in segregated accounts (this legally separates client assets from custodian’s own – meaning the custodian don’t have access to use your assets).
The only exception where a client’s assets are integrated with custodian accounts is with Australian dollar cash. Authorised deposit-taking institutions (ADIs) pool client funds and lend them out, as part of their business model.
What if something happens to Nucleus Wealth?
Nucleus Wealth was founded in 2017, and has been consistently growing funds under management since then – so the company is growing strongly. In the event that our fortunes change, we don’t hold any of your securities or cash. The only thing that will be affected is that Nucleus Wealth won’t be able to continue to manage your portfolio through Praemim’s SMA platform. In this event, you simply need to inform Praemium if you would like to appoint a new model manager to manage your portfolio. Alternatively, you can instruct Praemium to return the assets or securities to your nominated account.