Our system allows you to customise your investment to suit the ethical preferences that matter to you, not the fund manager.
To do this, we offer you over 30 different ethical tailoring options to customise your portfolio with.
transparent
We provide you:
A company profile on each company you own and why it is in your portfolio.
Detailed dashboards showing how your portfolio is positioned.
A detailed performance report each month, with a focus on current positioning and what we expect from markets.
Safe
Our portfolios are actively managed, and limited to blue chip International and Australian stocks, cash and government bonds. In addition, we intently target high quality stocks to reduce risk.
Customise your portfolio from our range of ethical options
No Fossil Fuels (Worst Offenders) No Fossil Fuels (Any) No Coal Seam Gas or Fracking No Nuclear Power No Old Growth Forest Logging
No Arms (Worst Offenders) No Arms (Any) No Nuclear Weapons
No Undemocratic Countries No Economically Repressed Countries (Worst) No Economically Repressed Countries (Any) No Morally Repressed Countries (Worst) No Morally Repressed Countries (Any) No Immigration Detention No Jails Lack of Gender Diversity (Worst) Lack of Gender Diversity
No Gambling
No Alcohol
No Pornography
No Tobacco
No Cannabis
No Animal Testing (Worst Offenders) No Animal Testing (Any) No Fur or Specialty Leather
No Fast Food
No Genetically Modified Foods
No Australian Banks No Australian Shares Limit Australian Housing Exposure No International Shares No Government Bonds
No Contraception No Human Stem Cell Use Only Sharia / Islamic
However, when it comes to investing, the questions become more nuanced and the answers often depend on the individual.
For example, some people like nuclear power for efficiency and carbon reduction benefits. Other people believe the risks to the environment and contamination are too high.
At Nucleus, we don’t dictate the ethics. You choose from over 30 different ethical overlays over your portfolio so that we don’t buy stocks that conflict with your beliefs.
ethical investment
We have ethics. Integrity, honesty, reliability.
However, when it comes to investing, the questions become more nuanced and the answers often depend on the individual.
For example, some people like nuclear power for efficiency and carbon reduction benefits. Other people believe the risks to the environment and contamination are too high.
At Nucleus, we don’t dictate the ethics. You choose from 20 different ethical overlays over your portfolio so that we don’t buy stocks that conflict with your beliefs.
Investment options
Investment options
Tactical Investment Options
These portfolios feature "Tactical Asset Allocation", meaning the amount of Cash, Bonds and Shares in each portfolio is adjusted by Nucleus Wealth to take advantage of global macroeconomic themes and to help protect the portfolio during volatile market conditions
Through our onboarding portal you can select any of the portfolios, a blend of several, or receive a recommendation of an appropriate blend for you using our free online advice tool
High growth portfolio for investors who are comfortable with higher levels of volatility and have a longer investment timeframe
Actively Managed, meaning the portfolio is regularly monitored to seek out opportunities in world markets
By using Separately Managed Accounts, every investor has their own individual portfolio, managed by Nucleus Wealth. This means that all dividends, distributions and franking credits are captured within your portfolio
Blend of assets that are tactically managed within the minimum and maximum weighting range of the portfolio ie. max 90% share exposure. Target allocations are shown in the following pie chart
Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
Minimum Investment is $10,000. For additional information, please visit our portfolios page
Benchmark is Australian Inflation (CPI) + 4.5%
Fees
Our investment management fee is 0.64% of your account balance per annum
There are additional platform and administration fees which vary with investment size and asset type
A full break down of all fees is provided during our onboarding process, and before you make a decision.
Performance
1 Year -1.5% p.a
3 Year 1.9% p.a
Inception 5.7% p.a
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.64%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 31 July 2017. You can view our full performance reports here.
Conservative portfolio for investors who do not have an income requirement
Actively Managed, meaning the portfolio is regularly monitored to seek out opportunities in world markets
By using Separately Managed Accounts, every investor has their own individual portfolio, managed by Nucleus Wealth. This means that all dividends, distributions and franking credits are captured within your portfolio
Blend of assets that are tactically managed within the minimum and maximum weighting range of the portfolio ie. max 50% share exposure. Target allocations are shown in the following pie chart
Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
Minimum Investment is $10,000. For additional information, please visit our portfolios page
Benchmark is Australian Inflation (CPI) + 2.5%
Fees
Our investment management fee is 0.64% of your account balance per annum
There are additional platform and administration fees which vary with investment size and asset type
A full break down of all fees is provided during our onboarding process, and before you make a decision.
Performance
1 Year -4.7% p.a
3 Year -1.9% p.a
Inception 1.8% p.a
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.64%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 31 July 2017. You can view our full performance reports here.
Conservative portfolio for investors who have a preference for income rather than capital gains
Actively Managed, meaning the portfolio is regularly monitored to seek out opportunities in world markets
By using Separately Managed Accounts, every investor has their own individual portfolio, managed by Nucleus Wealth. This means that all dividends, distributions and franking credits are captured within your portfolio
Blend of assets that are tactically managed within the minimum and maximum weighting range of the portfolio ie. max 30% share exposure. Target allocations are shown in the following pie chart
Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
Minimum Investment is $10,000. For additional information, please visit our portfolios page
Benchmark is Australian Inflation (CPI) + 2.5%
Fees
Our investment management fee is 0.64% of your account balance per annum
There are additional platform and administration fees which vary with investment size and asset type
A full break down of all fees is provided during our onboarding process, and before you make a decision.
Performance
1 Year -3.7% p.a
3 Year -1.3% p.a
Inception 1.8% p.a
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.64%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 31 July 2017. You can view our full performance reports here.
These portfolios feature "Tactical Asset Allocation", meaning the amount of Cash, Bonds and Shares in each portfolio is adjusted by Nucleus Wealth to take advantage of global macroeconomic themes and to help protect the portfolio during volatile market conditions
Through our onboarding portal you can select any of the portfolios or a blend of several, or receive a recommendation of an appropriate blend for you using our free online advice tool
High growth portfolio for investors who are comfortable with higher levels of volatility and have a longer investment timeframe
Actively Managed, meaning the portfolio is regularly monitored to seek out opportunities in world markets
By using Separately Managed Accounts, every investor has their own individual portfolio, managed by Nucleus Wealth. This means that all dividends, distributions and franking credits are captured within your portfolio
Blend of assets that are tactically managed within the minimum and maximum weighting range of the portfolio ie. max 90% share exposure. Target allocations are shown in the following pie chart
Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
Minimum Investment is $10,000. For additional information, please visit our portfolios page
Benchmark is Australian Inflation (CPI) + 4.5%
Performance
1 Year -1.5% p.a
3 Year 1.9% p.a
Inception 5.7% p.a
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.64%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 31 July 2017. You can view our full performance reports here.
Our investment management fee is 0.64% of your account balance per annum
There are additional platform and administration fees which vary with investment size and asset type
A full break down of all fees is provided during our onboarding process, and before you make a decision.
Features
Conservative portfolio for investors who do not have an income requirement
Actively Managed, meaning the portfolio is regularly monitored to seek out opportunities in world markets
By using Separately Managed Accounts, every investor has their own individual portfolio, managed by Nucleus Wealth. This means that all dividends, distributions and franking credits are captured within your portfolio
Blend of assets that are tactically managed within the minimum and maximum weighting range of the portfolio ie. max 50% share exposure. Target allocations are shown in the following pie chart
Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
Minimum Investment is $10,000. For additional information, please visit our portfolios page
Benchmark is Australian Inflation (CPI) + 2.5%
Performance
1 Year -4.7% p.a
3 Year -1.9% p.a
Inception 1.8% p.a
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.64%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 31 July 2017. You can view our full performance reports here.
Our investment management fee is 0.64% of your account balance per annum
There are additional platform and administration fees which vary with investment size and asset type
A full break down of all fees is provided during our onboarding process, and before you make a decision.
Features
Conservative portfolio for investors who have a preference for income rather than capital gains
Actively Managed, meaning the portfolio is regularly monitored to seek out opportunities in world markets
By using Separately Managed Accounts, every investor has their own individual portfolio, managed by Nucleus Wealth. This means that all dividends, distributions and franking credits are captured within your portfolio
Blend of assets that are tactically managed within the minimum and maximum weighting range of the portfolio ie. max 30% share exposure. Target allocations are shown in the following pie chart
Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
Minimum Investment is $10,000. For additional information, please visit our portfolios page
Benchmark is Australian Inflation (CPI) + 2.5%
Performance
1 Year -3.7% p.a
3 Year -1.3% p.a
Inception 1.8% p.a
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.64%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 31 July 2017. You can view our full performance reports here.
Our investment management fee is 0.64% of your account balance per annum
There are additional platform and administration fees which vary with investment size and asset type
A full break down of all fees is provided during our onboarding process, and before you make a decision.
Core Share Investment Options
These portfolios hold only Australian or International shares respectively, and do not feature Tactical Asset Allocation, meaning they are always fully invested and are not ‘de-risked’ at any time. This can mean higher levels of volatility compared with Tactical portfolios
A portfolio of leading global companies' shares (60-80 holdings)
Actively Managed, meaning we monitor stock prices and buy or sell accordingly, whilst ensuring a diversified mix of sectors
By using Separately Managed Accounts, every investor has their own individual portfolio, managed by Nucleus Wealth. This means that all dividends, distributions and franking credits are captured within your portfolio
Ideal for those who wish to manage their own asset portfolio whilst having Nucleus manage the International share component of the portfolio for them
Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
Minimum investment: $70,000
Benchmark is the MSCI World Index
Fees
Our investment management fee is 0.64% of your account balance per annum
There are additional platform and administration fees which vary with investment size and asset type
A full break down of all fees is provided during our onboarding process, and before you make a decision.
Performance
1 Year -3.8% p.a
3 Year 6.1% p.a
Inception 9.7% p.a
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.64%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 31 July 2017. You can view our full performance reports here.
A portfolio of leading Australian companies' shares (20-30 holdings)
Actively Managed, meaning the portfolio is regularly monitored to seek out opportunities in world markets, whilst ensuring a diversified mix of sectors
By using Separately Managed Accounts, every investor has their own individual portfolio, managed by Nucleus Wealth. This means that all dividends, distributions and franking credits are captured within your portfolio
Ideal for those who wish to manage their own asset portfolio whilst having Nucleus manage the Australian share component of the portfolio for them
Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
Minimum investment: $25,000
Benchmark is the MSCI Australia index
Fees
Our investment management fee is 0.64% of your account balance per annum
There are additional platform and administration fees which vary with investment size and asset type
A full break down of all fees is provided during our onboarding process, and before you make a decision.
Performance
1 Year 11.7% p.a
3 Year 6.4% p.a
Inception 6.5% p.a
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.64%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 31 July 2017. You can view our full performance reports here.
These portfolios hold only Australian or International shares respectively, and do not feature Tactical Asset Allocation, meaning they are always fully invested and are not ‘de-risked’ at any time. This can mean higher levels of volatility compared with Tactical portfolios
A portfolio of leading global companies' shares (60-80 holdings)
Actively Managed, meaning we monitor stock prices and buy or sell accordingly, whilst ensuring a diversified mix of sectors
By using Separately Managed Accounts, every investor has their own individual portfolio, managed by Nucleus Wealth. This means that all dividends, distributions and franking credits are captured within your portfolio
Ideal for those who wish to manage their own asset portfolio whilst having Nucleus manage the International share component of the portfolio for them
Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
Minimum investment: $70,000
Benchmark is the MSCI World Index
Performance
1 Year -3.8% p.a
3 Year 6.1% p.a
Inception 9.7% p.a
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.64%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 31 July 2017. You can view our full performance reports here.
Our investment management fee is 0.64% of your account balance per annum
There are additional platform and administration fees which vary with investment size and asset type
A full break down of all fees is provided during our onboarding process, and before you make a decision.
Features
A portfolio of leading Australian companies' shares (20-30 holdings)
Actively Managed, meaning the portfolio is regularly monitored to seek out opportunities in world markets, whilst ensuring a diversified mix of sectors
By using Separately Managed Accounts, every investor has their own individual portfolio, managed by Nucleus Wealth. This means that all dividends, distributions and franking credits are captured within your portfolio
Ideal for those who wish to manage their own asset portfolio whilst having Nucleus manage the Australian share component of the portfolio for them
Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
Minimum investment: $25,000
Benchmark is the MSCI Australia index
Performance
1 Year 11.7% p.a
3 Year 6.4% p.a
Inception 6.5% p.a
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.64%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 31 July 2017. You can view our full performance reports here.
Our investment management fee is 0.64% of your account balance per annum
There are additional platform and administration fees which vary with investment size and asset type
A full break down of all fees is provided during our onboarding process, and before you make a decision.
PASSIVE PORTFOLIOS
Passively managed investment solutions for those who are happy to receive indexed returns whilst paying lower fees. These portfolios hold only Australian or International shares or ASX listed Bonds, and do not feature Tactical Asset Allocation, meaning they are always fully invested and are not ‘de-risked’ at any time. This can mean higher levels of volatility compared with Tactical portfolios.
A portfolio of the largest global shares by market capitalisation (40 holdings)
Investment objective: To provide a return before fees approximating the S&P Global 100 Index in Australian dollars. Measured over a five year rolling average.
Investment strategy: The model provides exposure to a portfolio of the largest global equities by market capitalisation1Market capitalisation is the value of the company measure as the number of share it has issued, multiplied by the price of those shares. The model will generally hold the 40 largest shares listed in developed markets2From IG, developed market in investing terms is a country that is most developed in terms of its economy and financial markets. Its capital markets are developed, with a high level of regulation and oversight, a market exchange, and good liquidity in its debt and equity markets. Examples include the United States, Japan and Australia) .
Ideal for those who wish to manage their own asset portfolio and want to include a lower cost Global Equities exposure
Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
Minimum investment: $10,000 (platform dependent)
Benchmark is the S&P Global 100 Index in AUD
During periods when small companies outperform larger ones the portfolio may underperform, and vice versa.
Portfolio is unhedged so investors are exposed to AUD movements
Our investment management fee is 0.17% of your account balance per annum
There are additional platform and administration fees which vary with investment size and asset type
A full break down of all fees is provided during our onboarding process, and before you make a decision.
Performance
1 Month 1.8% p.a
3 Month -4.1% p.a
Inception 8.6% p.a*
*The 5 year annualised return p.a of this portfolios benchmark (S&P World 100) is 8.9%
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.17%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 1 January 2021. You can view our full performance reports here.
A portfolio of the largest ASX listed companies' shares (25 holdings)
Investment objective: This is a passive strategy designed to provide a before fees return in line with the S&P/ASX 20 Accumulation Index over rolling five year periods.
Investment strategy: The model provides exposure to a portfolio of the 25 largest companies on the ASX.
Ideal for those who wish to manage their own asset portfolio and want to include a lower cost Australian Equities exposure
Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
Our investment management fee is 0.17% of your account balance per annum
There are additional platform and administration fees which vary with investment size and asset type
A full break down of all fees is provided during our onboarding process, and before you make a decision.
Performance
1 Month -2.9% p.a
3 Month 0.2% p.a
Inception 10.0% p.a*
*The 5 year annualised return p.a of this portfolios benchmark (ASX20) is 4.8%
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.17%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 1 January 2021. You can view our full performance reports here.
A portfolio of Australian Commonwealth Government Bonds listed on the ASX.
Investment objective: Passively managed portfolio creating a bond ladder using ten to 15 ASX listed Australian Commonwealth Government Bonds of various maturities.
Investment Strategy: The overall portfolio is constructed to target an average weighted maturity similar to the Bloomberg AusBond Treasury 0+Yr Index. Bonds are usually held to maturity and target minimal trading
Ideal for those who wish to manage their own asset portfolio and want to include a lower cost Bond exposure
Our investment management fee is 0.11% of your account balance per annum
There are additional platform and administration fees which vary with investment size and asset type
A full break down of all fees is provided during our onboarding process, and before you make a decision.
Performance
1 Month -1.4% p.a
3 Month -0.9% p.a
Inception -5.1% p.a
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.11%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 1 January 2021. You can view our full performance reports here.
Passively managed investment solutions for those who are happy to receive indexed returns whilst paying lower fees. These portfolios hold only Australian or International shares or ASX listed Bonds, and do not feature Tactical Asset Allocation, meaning they are always fully invested and are not ‘de-risked’ at any time. This can mean higher levels of volatility compared with Tactical portfolios.
A portfolio of the largest global shares by market capitalisation (40 holdings)
Investment objective: To provide a return before fees approximating the S&P Global 100 Index in Australian dollars. Measured over a five year rolling average.
Investment strategy: The model provides exposure to a portfolio of the largest global equities by market capitalisation3Market capitalisation is the value of the company measure as the number of share it has issued, multiplied by the price of those shares. The model will generally hold the 40 largest shares listed in developed markets4From IG, developed market in investing terms is a country that is most developed in terms of its economy and financial markets. Its capital markets are developed, with a high level of regulation and oversight, a market exchange, and good liquidity in its debt and equity markets. Examples include the United States, Japan and Australia) .
Ideal for those who wish to manage their own asset portfolio and want to include a lower cost Global Equities exposure
Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
Minimum investment: $10,000 (platform dependent)
Benchmark is the S&P Global 100 Index in AUD
During periods when small companies outperform larger ones the portfolio may underperform, and vice versa.
Portfolio is unhedged so investors are exposed to AUD movements
Our investment management fee is 0.17% of your account balance per annum
There are additional platform and administration fees which vary with investment size and asset type
A full break down of all fees is provided during our onboarding process, and before you make a decision.
Performance
1 Month 1.8% p.a
3 Month -4.1% p.a
Inception 8.6% p.a*
*The 5 year annualised return p.a of this portfolios benchmark (S&P World 100) is 8.9%
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.17%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 1 January 2021. You can view our full performance reports here.
A portfolio of the largest ASX listed companies' shares (25 holdings)
Investment objective: This is a passive strategy designed to provide a before fees return in line with the S&P/ASX 20 Accumulation Index over rolling five year periods.
Investment strategy: The model provides exposure to a portfolio of the 25 largest companies on the ASX.
Ideal for those who wish to manage their own asset portfolio and want to include a lower cost Australian Equities exposure
Full ethical overlay, allowing you to exclude themes you don't support from your portfolio
Our investment management fee is 0.17% of your account balance per annum
There are additional platform and administration fees which vary with investment size and asset type
A full break down of all fees is provided during our onboarding process, and before you make a decision.
Performance
1 Month -2.9% p.a
3 Month 0.2% p.a
Inception 10.0% p.a*
*The 5 year annualised return p.a of this portfolios benchmark (ASX20) is 4.8%
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.17%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 1 January 2021. You can view our full performance reports here.
A portfolio of Australian Commonwealth Government Bonds listed on the ASX.
Investment objective: Passively managed portfolio creating a bond ladder using ten to 15 ASX listed Australian Commonwealth Government Bonds of various maturities.
Investment Strategy: The overall portfolio is constructed to target an average weighted maturity similar to the Bloomberg AusBond Treasury 0+Yr Index. Bonds are usually held to maturity and target minimal trading
Ideal for those who wish to manage their own asset portfolio and want to include a lower cost Bond exposure
Our investment management fee is 0.11% of your account balance per annum
There are additional platform and administration fees which vary with investment size and asset type
A full break down of all fees is provided during our onboarding process, and before you make a decision.
Performance
1 Month -1.4% p.a
3 Month -0.9% p.a
Inception -5.1% p.a
Past performance is not an indication of future performance. The above returns are per annum, as of February 28th 2023 and after investment fees (of 0.11%) but before administration fees (variable, available on our client portal and FAQs). Inception returns are per annum from 1 January 2021. You can view our full performance reports here.
We use Nucleus Wealth because of its ethical standards and good performance. We are entirely satisfied with its structures and communicative process
Charles / 75+ years old
Nucleus Wealth was very easy to use, the support team is great and happy to answer any questions. They exceeded expectations and I would recommend their service.
Virginnia / 46-55 years old
Fund performance was excellent during challenging conidtions. For me it was an excellent alternative to most domestic (AU) investment options such as ASX, and as such really helped to diversify internationally and minimise risk. Staff have been easy to communicate with. I was also pleased to make use of the ethical & environmental filters.
Dave / 36-45 years old
The Nucleus Wealth offering from risk profile assessment and platform asset management is incredibly easy to use. The customer support is responsive, informative, polite and caters to a wide group of investor experience. The service overall has exceeded my expectations and prove the benefits of an active fund manager in these uncetain times.
David / 36-45 years old
Nucleus Wealth offer a great product with outstanding dashboard tools that allow investors to drill all the way down into their investment and view each holding. Great customer support. Strongly recommend.
Richard / 25-35 years old
Nuclear Wealth aligns well with my investment thesis, had great customer service and communicate often through interestomg podcasts
Jason / 36-45 years old
The team has been very helpful and accommodating with my needs. Have recommended it to friends
Jarek / 36-45 years old
Nucleus Wealth was relatively easy to use. The customer support options were quite good. Nucleus Wealth’s service generally met my expectations. I would definitely recommend it to friends.
Patrick / 46-55 years old
Nucleus Wealth was easy to use, though charting options were not straight forward. The customer support was excellent. I would definitely recommend it to friends.
Ethical investing is frankly confusing. There are plenty of good products, but also a number of products whose promoters may not be as ethical as the stocks they invest in…
For Nucleus Wealth’s Head of Investment Damien Klassen, there are three key issues:
What is the effect on investment performance
How are the stocks chosen
What are the fees
Read on for a short excerpt from an article on how Damien looks at ethical investing. Or, you can read the full article
“2. How are the stocks chosen
There are three different approaches that different ethical funds use to select stocks:
Positive ethical investing: This involves finding companies that are actively contributing to causes that you feel strongly about. It might mean investing in a solar manufacturer, a biotech with a potential cure for cancer or an electric car manufacturer.
Negative screening: This involves excluding companies that do not meet ethical standards. It may mean not investing in any companies that are involved in tobacco, that produce carbon or that make weapons.
Best of breed: This involves ranking companies on a range of metrics and excluding those that don’t meet particular standards. For example, a carbon/global warming strategy may exclude companies involved in brown coal or tar sands (generally considered the most polluting) but include companies that produce natural gas as it pollutes less.
Positive investing is difficult – finding stocks that are good quality and cheap is hard enough. If you find a stock with very positive ethical characteristics that is only average quality and the stock is very expensive should you buy it anyway, expecting a poor return?
Negative screening needs to be customised, which makes investing in an ethical fund difficult. One investor may think that tobacco is a terrible additive product but gambling is an individual’s choice. Another investor may have exactly the opposite view.
Best of breed can be similarly problematic. If you don’t want exposure to fossil fuels, then holding a gas producer with the view that it is “the least damaging, and it is cheap and so I think I can profit from it” can seem hypocritical.
Nucleus: At my fund, we decided that the best result for our investors would be to incorporate corporate governance screens into our stock selection process, and then to allow investors to add negative screens that customise the ethics to investors own views.
This is possible as we run managed accounts, but is something that you wouldn’t be able to do if you invested in a traditional managed fund.”
This has been a brief section of Damien’s breakdown of Ethical Investing. You can read the rest of the ethical article here.
In these funds, we make the decision when and what mix of Australian shares, International shares, cash or bonds to invest in.
There are three sub-funds, and typically we will blend all three of these funds for you so that you get a mix of assets appropriate for your income needs and your risk preference:
Growth: In this fund there is a higher weighting of growth investments. Clients with a lower tolerance for risk can blend this model with other models to achieve a more appropriate risk outcome.
Accumulation: This is a conservative portfolio for investors who do not have an income requirement. There is a low weighting of growth investments, and we buy stocks in this portfolio without regard to the dividend yield.
Income: This is a conservative portfolio for investors who have a preference for income rather than capital gains. There is a very low weighting of growth investments, and stocks in this portfolio are screened for yield.
2. Tactical Foundation
This is a fund for investors with lower balances. It aims to provide investors with an introduction to the benefits of individual share ownership through a separately managed account, whilst still ensuring investors maintain a reasonable share parcel size.
We again make the decision when and what mix to buy of Australian shares, International shares, cash or bonds.
Due to the lower balances though, direct international share ownership is not feasible and so this model achieves this through an individual Australian share portfolio, a selection of International exchange tradedfunds, and defensive holdings in bonds and cash.
3. Shares only portfolios
These are “carve outs” of the Australian or International parts of the above portfolios.
They are a core holding, designed to have exposure to the large capitalisation part of the Australian or International market. Its intended for investors who wish to do their own asset allocation, and can use this fund to get exposure to higher quality and cheaper stocks in the Australian market.
The funds maintain minimal cash balances – i.e. the tactical funds above will reduce share weights when stock markets are expensive or risky, whereas this fund will remain fully invested. It is up to the investor to manage the asset allocation when buying this fund.
At Nucleus, we are dedicated to transparency. We want you to be able to see exactly where your money is invested and why.
We offer a range of transparency options:
A company profile on each company you own showing where it sits on our metrics and why it is in your portfolio
Detailed dashboards showing how your portfolio is positioned
24×7 access to performance and fee data
A weekly podcast/webinar where you can ask questions
We write up a detailed performance report each month, with a focus on current positioning and what we expect from markets
We also write blog posts frequently about markets
You are welcome to call us or book a meeting if you have any questions not answered by the above.
Whilst engaging professionals to look after any part of your life is going to cost money, it should not mean the difference between a great and a less than ideal retirement. At Nucleus, we strive to keep costs low by cutting out the many middlemen that reside in most of the current investment options available today.
If you choose to invest with Nucleus there are two fees that are charged:
A management fee paid to Nucleus for making the investment decisions of 0.64%.
A platform fee paid to a 3rd party platform provider (either Praemium or Linear) not related to Nucleus. This money provides you with custodial services, tax reporting, online access and trading. The fee varies depending upon the amount invested (fully explained in the Product Disclosure Statement), indicatively an investor with $200,000 would pay around 0.50%, an investor with $2m would pay around 0.30%.
Brokerage Costs. We have secured very low-cost brokerage.
Costs are important.
Our mission is to provide a technology-based investment solution that delivers portfolio tailoring, transparency and world-class investment research to our clients whilst sharing the cost efficiencies that come with not needing a branch on every corner.
As an investor with Nucleus, you only pay the costs associated with your account, not for the managed pool as found in other alternatives, and take advantage of the minimised worldwide brokerage and administration costs that come with using a platform that is not owned by a large institution.
When you apply, we provide a full breakdown of the costs for your investment.