Frequently Asked Questions

As Head of Operations of Nucleus Wealth, I enjoy dealing with client queries and questions on a daily basis. I like to think that all the information we have put together helps potential investors get a really good idea of what we do and how we can help them, but there is always more we can provide.

So, we produced a short 10 minute video where I address the most frequently asked questions about investing with Nucleus Wealth, which also serves as an introduction to the fund. The video can be accessed in the player below. Underneath it, you can find the transcribed answer to each question, as well as a video for that individual question. Timestamps are included so you can jump to the section of the video you’re curious about.

Additional frequently asked questions outside of the video can be found below.

Tim Fuller.

 

0:10 A little bit about Nucleus Wealth and how we invest for clients.

Nucleus Wealth is a Melbourne based investment house that started in 2016. We offer significant points of difference in the way we invest for clients with the aim of providing a transparent and easy to understand investment solution.

Every client of Nucleus Wealth has their own bespoke portfolio of shares, bonds and cash held on a third party platform called Praemium in a separately managed account.

Separately managed accounts have been around for some time, and have grown in popularity in the last 5 years. They offer the investor the benefits of direct share ownership, as dividends, distributions and franking credits are confined to your account, whilst you still have the hands off nature of a professionally managed investment solution.

We chose Praemium because it is fully backed by global and local banks, in JPMorgan, HSBC and ANZ offering the gold standard for client asset protection.

Because you have your own individual portfolio, you can individually tailor the account using 29 different ethical and portfolio tailoring options, and we can offer free investment advice on an appropriate portfolio for your needs.

 

1:32 What sort of portfolios do you have and what investments do you use?

We have opted to only use what we see as the basic building blocks of a quality diversified portfolio. All you will find in Nucleus Wealth portfolio’s is variants of cash, Australian Federal Government Bonds and companies that sit in the MSCI World index, which are roughly the largest 1600 companies in the world.

We are long only, and consider our portfolio’s to be the ‘Nucleus’ of a clients investments, leaving them, if they wish, time to manage other asset classes that are not in our playground.

We look after both the stock selection and tactical asset allocation, for example holding more cash and bonds in periods of market volatility and all portfolios are reviewed daily.

We have 3 tactically managed flagship portfolio’s; Growth, Income and Accumulation. These multi-asset portfolio’s will comprise a combination of cash, Australian government bonds and blue-chip shares1Blue chips are typically large international corporations that have been operating for many years, are considered to be quite stable and are known for their excellent management and strong financial structure. The term has really become synonymous with being ‘quality’ shares to buy,, both Australian and international. We accept balances as low as $10,000. To find out more about these portfolios and the assets contained within them, please visit our portfolios page

We also offer just our stock selection services in full direct share portfolio’s called Core Australia and Core International, for those seeking to do their own tactical asset allocation.

 

2:37 What are your fees?

We have targeted an all-in cost to client of around 1% per annum or less, which is charged monthly in arrears on the balance you invest with us.

This is comprised of our investment management fee, which is a flat 0.64% per annum across all portfolios and asset classes. We do this for a number of reasons:

  1. Firstly, it is clear and transparent and we do not charge any performance fees
  2. Secondly, by charging the same across all asset classes, there is no perceived incentive to move from one to the other unless it benefits your portfolio

The remainder is made up of our platform partner’s administration costs, which decreases with the amount invested on the platform, and there is no admin fee charged after $1m. There is also the ability to aggregate multiple accounts as a family group to help take advantage of this tier pricing structure.

Praemium incorporates a daily book building process, which mean that brokerage is minimized through group trading. We can typically transact for a tenth of the cost of traditional brokerage fees and the initial brokerage amount is estimated in the onboarding process.

For personal super account there is an additional trustee fee which is estimated for you during the onboarding process.

4:01 How do I give you money, and how do I get it back?

Adding money is easy. Every account has its own BPAY number, which facilitates high transfer amounts and is a robust and reliable system. This is provided in the Welcome Pack sent shortly after applying.

The platform will wait until you have deposited your initial amount before trading, and transfers usual take about 3 business days to get through to the investment account.

Once up and running you can make deposits of any amount whenever you wish, and the new money will be invested automatically the following market day.

Getting money out is also simple. Just send through an instruction to our central inbox, contact@nucleuswealth.com and we will instruct the payment back to the bank account you provided initially. Any amount is fine and all investments are held in highly liquid markets.

Depending on how much market activity is required, the transfer usually takes between 4 and 6 business days to be returned to your account.

5:06 Can I invest using my personal super account?

We offer all investment portfolios through personal superannuation, which has all the functionality of a regular superfund, but with typically much more transparency and personal tailoring.

Through the online onboarding tool, you can also get a quote on Life and Total and Permanent Disablement insurance which is a stand alone policy that sits alongside the investment and is portable. We do not take commission on the insurance component to help keep it affordable.

Once aboard, we can send you a prefilled form to give to your employer, and the fund can accept additional contributions much like any other fund.

Onboarding your super is easy and paperless, and our platform takes care of the rollover from your previous fund electronically.

5:57 What reports do I receive at the end of the year for tax purposes?

Our platform partner, Praemium, has one of the best reporting systems in the business, so much that it is used by major banks. At the end of the financial year, usually around September, you will be provided with a full, audited tax report that can be easily used to manage your tax affairs.

The typical figures your accountant needs, such as realized capital gains, income, distributions and franking credits are provided in much the same way as a share broker end of year report.

 

6:29 How can I have a look at what you can do for me?

We have put together a fantastic fully online onboarding tool, which the is no obligation to invest, but offers the ability to tailor and view an indicative portfolio as we would invest for you today. The whole process is paperless and can be competed in 10-15 minutes.

You can invest through all major ownership types, including personal super, individual, joint names, Self Managed Super Funds, Trusts and Companies.

You have the ability to tailor your investment using 29 different ethical and portfolio screens, which effectively knocks out stocks from your portfolio that do not meet your requirements.

You can also seek free personal financial advice through the Limited Advice path, which will ask questions about important factors such as your time frame for investments, risk appetite and feelings towards volatility.

From there we can then recommend a portfolio from our range that is suitable for your personal circumstances.

You can also opt to just select the portfolio’s off the shelf using the Self Directed option.

The full portfolio, as we would invest today, and fees and initial brokerage estimates are available at the review stage

All information displayed on the screen is available in document form, along with the product disclosure statement, before you need to decide whether to invest.

There is also the ability for us to make a referral to a third party face to face advice network if you feel you need broader advice.

8:09 What else do you provide as an investor?

Once aboard, each client has their own fully featured Client Dashboard that provides a wealth of information. At anytime you can see your portfolio’s asset allocation, sector and country analysis and there is an investment grade analyst report for every holding in your portfolio.

In this dashboard you can also make additional changes to the portfolio such as seeking further investment advice or other portfolio adjustments and modifying your ethical and portfolio screens.

You will also have access to Praemium’s award winning client portal that provides cashflow and depositing information along with performance statistics and reporting.

As an investor you can expect an in depth monthly performance report, which details the macroeconomic drivers and narratives that are at work in your portfolio,

We also have our popular live weekly webinar series, giving you some serious insight into the themes that are front of mind of our investment team.

Additional Frequently Asked Questions 

Below are some further FAQ’s that aren’t included in the video. Note: if you’re a current client, please scroll down the page to the current clients section

General

What is Nucleus Wealth and how does it operate?

Nucleus Wealth is an Australian investment fund that started in 2016. Nucleus Wealth offers significant points of difference in the way the fund invests for potential investors/clients, with the aim of providing a transparent and easy-to-understand investment solution.

Every client of Nucleus Wealth has their own bespoke portfolio of shares, bonds and cash held on a third-party platform called Praemium in a Separately Managed Account (you will sometimes see this called an SMA). More information on Praemium and Separately Managed Accounts below.

Because the client has their own individual portfolio, they can individually tailor the account using over 30 different ethical and portfolio tailoring options- from this, Nucleus Wealth can offer free investment advice on an appropriate portfolio for the client’s needs.

Nucleus Wealth predominantly operates online. Regularly updated blogs, reports, podcasts and articles are available on the company’s website, as well as calling and email services. The Nucleus Wealth client onboarding portal not only details every share and bond in the client’s portfolio, but more importantly why they are in the portfolio. While clients are welcome for an in-person visit at the Nucleus Wealth office, the company’s hope is that the unparalleled transparency and online investment support is enough to give clients all of the information needed to make investment choices.

What is Praemium?

Praemium is a platform that administers investments and performs trading of stocks on behalf of Nucleus Wealth clients.

Nucleus Wealth chose Praemium as its investment platform because Praemium is fully backed by global and local banks, such as JPMorgan, HSBC and ANZ, offering the gold standard for client asset protection.

What are separately managed accounts and how do they work?

A separately managed account (SMA) is a portfolio of individual securities managed on the client’s behalf by a professional asset management firm, such as Nucleus Wealth. Separately managed accounts offer the investor the benefits of direct share ownership. Dividends, distributions and franking credits are confined to the client’s account, whilst the client still has the hands off nature of a professionally managed investment solution. Separately managed accounts have been around for some time, and have grown in popularity in the last 5 years.

 

What type of investment accounts does Nucleus Wealth offer?

Super Accounts:

Personal Superannuation – For clients looking to rollover funds from their existing personal superannuation account, or looking to open a new account

SMSF with Individual Trustees – For clients looking to invest money in the name of a Self Managed Super Fund they control that has individual trustees

SMSF with a Corporate Trustee For clients looking to invest money in the name of a Self Managed Super Fund they control that has a corporate trustee

 

Non-Super Accounts:

Individual – For clients looking to invest personal money in their own name (not in superannuation)

Joint – For clients looking to invest personal money in the name of 2 people (e.g. the client and their partner)

Company – For clients looking to invest money in the name of a company they have control of

Trust with Individual Trustees – For clients looking to invest money in the name of a trust they control that has individual trustees 

Trust with a Corporate Trustee – For clients looking to invest money in the name of a trust they control that has a corporate trustee

What is a Self Managed Super Fund?

A self managed super fund (SMSF) is a superannuation trust structure that provides benefits to its members upon retirement. The main difference between Self Managed Super Funds and other super funds is that Self Managed Super Fund members are also the trustees of the fund. More information on Self Managed Super Funds here.

 

How can I have a look at what Nucleus Wealth has to offer?

Nucleus Wealth has put together an online onboarding tool, which there is no obligation to invest, but offers the ability to tailor and view an indicative portfolio as we would invest on your behalf today. The whole process is paperless and can be completed in 10-15 minutes.

You can invest through all major ownership types, including personal superannuation, individual, joint names, Self Managed Super Funds, Trusts and Companies.

You have the ability to tailor your investments using over 30 different ethical and portfolio screens, which effectively knocks out stocks from your portfolio that do not meet your requirements. 

You can also seek free personal financial advice through the ‘Limited Advice’ path, which will ask questions about important factors such as your time frame for investments, risk appetite and feelings towards volatility. 

From there, Nucleus Wealth can then recommend a portfolio (or blend of portfolios) from our company’s range that is appropriate for your answers.

You can also opt to just select the portfolios off-the-shelf using the ‘Self Directed’ option.

The full portfolio, as Nucleus Wealth would invest today, fees and initial brokerage estimates are available at the review stage of the onboarding portal. 

All information displayed on the screen is available in document form, along with the product disclosure statement (PDS), which will be sent to you before you decide whether to invest. 

There is also the ability for Nucleus Wealth to make a referral to a third-party face-to-face advice network if you feel you need broader advice.

What else does Nucleus Wealth provide investors?

Once aboard, you will have your own fully-featured client dashboard that provides a wealth of information. At any time, you will be able to see your portfolio’s asset allocation, sector and region analysis, as well as if there is an investment-grade analyst report for every holding in your portfolio.

 

In this dashboard, you will also be able to make additional changes to your portfolio, such as seeking further investment advice or other portfolio adjustments and modifying your ethical and portfolio screens.

You will also have access to Praemium’s award-winning client portal that provides cash flow and depositing information along with performance statistics and reporting.

As an investor, you can expect an in-depth monthly performance report, which details the macroeconomic drivers and narratives that are at work in your portfolio.

Nucleus Wealth also has our  popular live weekly webinar series, giving you some serious insight into the themes that are front of mind of our company’s investment team.

What is the relation between MacroBusiness and Nucleus Wealth? Are the MacroBusiness Fund and Nucleus Wealth Fund the same?

MacroBusiness is an Australian investment blog. David Llewellyn-Smith & Leith Van Onselen from MacroBusiness are partners with Nucleus Wealth, and are on the board as Chief Strategist & Chief Economist respectively. David in particular has a lot of input with Nucleus Wealth’s long-term strategic investment direction. 

The MacroBusiness Fund (also known as MB Fund) and Nucleus Wealth Fund are the same product. David, Leith and the MacroBusiness team have partnered with the like-minded asset manager, Damien Klassen from Nucleus Wealth, to create the fund for investors.

Can I be sent the Product Disclosure Statement prior to opening an investment account?

Unfortunately, Nucleus Wealth is restricted by compliance. 

The way for you to access the Product Disclosure Statement is for you to use the Nucleus Wealth online client onboarding portal, keeping in mind that creating an application does not require you to deposit money.

You can also access more accurate fee estimates once you have completed the online onboarding portal.

 Once your account has been approved by Praemium, you will be sent several documents, including the Product Disclosure Statement, which you can then read over and decide whether you want to pursue depositing money into your account.

What are the minimum investment amounts for Nucleus Wealth’s portfolios?

Tactical Growth – $10,000

Tactical Accumulation – $10,000

Tactical Income – $10,000

Core International – $70,000

Core Australia – $25,000

Nucleus Super –  $35,000

Note that all of these minimums are a guide to the investment required to get adequate diversification. Nucleus Wealth will accept lower balances on request.

 

Are the minimums fixed, or can I fund slightly less into my account and still be able to access certain portfolios?

The minimum account funding is not set in stone, but is more so indicative of the level of funding required to have access to the number of securities included in the target portfolio. 

Nucleus Wealth is able to fund accounts with less, however it might mean you might miss out on certain stocks and bonds, making the performance of the given portfolio slightly different to the target portfolio.

How is my personal information verified when it is uploaded onto the onboarding portal?

Nucleus Wealth uses a third-party platform called GreenID, which cross-checks your data against several databases including the electoral roll. This is in compliance with the Anti-Money Laundering (AML) Laws.

Is cash in the accounts covered by the Australian Government Guarantee Scheme?

No.

Cash held on your behalf by Praemium is held in an omnibus account and thus not protect by the Financial Claims Scheme.

Is Nucleus Wealth Shariah-Compliant?

Nucleus Wealth has products that may suit your needs. We encourage you to have a phone conversation with one of our financial advisors to discuss this.

What sort of portfolios does Nucleus Wealth have?

Tactical Portfolios 

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 by using Nucleus Wealth’s free online advice tool.

3 Tactical Portfolios: Tactical Growth, Tactical Accumulation, Tactical Income

Core Share Portfolios

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.

2 Core Portfolios: Core International, Core Australia

 

What type of investments does Nucleus Wealth use?

Nucleus Wealth has opted to only use what the company sees as the basic building blocks of a quality diversified portfolio. 

You will only find in Nucleus Wealth portfolios variants of cash, Australian Federal Government Bonds and companies that sit in the MSCI World index, which are roughly the largest 1600 companies in the world, including about 65 of the largest Australian stocks. 

Nucleus Wealth is long only, and considers its portfolios to be the ‘Nucleus’ of a clients’ investments, making up the lower risk core of a portfolio.  Some investors choose to surround this core with higher risk investments that they (or other fund managers) manage themselves.

Nucleus Wealth looks after:

Tactical asset allocation: for example holding more cash and bonds in periods of market volatility

Stock selection: choosing which stocks to own

The Nucleus Wealth team reviews and makes decisions on all its portfolios on a daily basis.

Nucleus Wealth offers their flagship portfolios called Tactical Growth, Income and Accumulation, which can be accessed with a minimum investment amount of $10,000. Depending on the initial amount an investor wants to put into their investment portfolio, investors can be exposed to a diversified blend of Australian and International Exchange Traded Funds, direct Australian bonds, direct Australian shares and international shares, and can be blended to provide greater risk tailoring and have between 80 and 100 holdings.

Nucleus Wealth also offers just our stock selection services in full direct share portfolio’s called Core Australia and Core International, for those seeking to do their own tactical asset allocation.

What are your Tactical Portfolios?

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.

What are your Core Portfolios?

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

Through our onboarding portal you can select any of the portfolios or a blend of several.

Do you facilitate franking credits on dividends?

Once you have completed your application on the Nucleus Wealth portal, Praemium cross checks your details with GreenID to verify your identity. 

Once your details are verified, Praemium approves your application and creates a Separately Managed Account number, which is sent to you, as well as the BPAY number which enables the transfer of funds to occur.

Yes, some company dividends come with franking. Each of our clients effectively has their own portfolio of shares, bonds and cash so the actual amount of franking differs from client to client, but all franking earned by the respective shares is applied directly back to that investor. The portfolio is essentially similar to having a portfolio on Commsec or some other broker, just managed on an ongoing basis by us.

What are Nucleus Wealth’s fees?

Nucleus Wealth has targeted an all-in cost to clients of around 1% per annum or less, calculated daily and charged monthly in arrears on the balance a client invests with the company.

Nucleus Wealth does not charge a performance fee, and you can see the company’s view on this here.

Our financial advice is free, but limited to investment advice about which Nucleus Wealth products are best for your needs. 

Other than brokerage costs to buy or sell positions, there are no fees to open an account with us, and no fees to liquidate or sell down. 

There are two types of explicit fees:

An investment management fee

A platform administration fee

 

Investment Management Fee

Nucleus Wealth charges a flat 0.64% (or 64 basis points) investment management fee across all asset classes per annum. By charging the same across all asset classes, there is no perceived incentive to move from one to the other unless it benefits your portfolio.

Platform Administration Fee

There is an additional fee charged by Praemium, Nucleus Wealth’s platform partner, for running their administration, custody and trustee services. The Praemium fee starts at $65 per annum plus 0.33%.

Praemium uses a sliding scale that reduces admin fees as the investor’s account balance grows. There is no administration fee charged after investing $1,000,000. There is also the ability to aggregate multiple accounts as a family group to help take advantage of this tier pricing structure.

There are also two types of indirect fees. These are fees that are embedded in the performance of portfolios you will not see explicitly.   When you sign up we show you how much we expect from these products. If you are comparing our fees to another investment fund, you may need to ask that fund for the indirect costs as many do not disclose them.

 

Two types of indirect fees:

Brokerage Cost

Exchange Traded Funds

 

Brokerage Cost

This fee is a one-off to establish your portfolio. Praemium incorporates a daily book-building process, which means that brokerage is minimised through group trading. Nucleus Wealth can typically transact for a tenth of the cost of traditional brokerage fees and the initial brokerage amount is estimated in the onboarding process. 

Exchange Traded Funds

Embedded in portfolios for smaller balance clients are Exchange Traded Funds (often called ETFs). These have fees embedded in them that you will not see as they are included in the price.

There may be an Indirect Cost component, which is the investment management fees of any exchange traded funds Nucleus Wealth may hold.

 

Superannuation

Superannuation accounts incur additional charges to pay for the Trustee. These include: $12 per month in fund accounting fees, and 0.03% per annum of fund balances up to $1,000,000, and 0 above this, for the Operational Risk Reserve levy.

Why is there a range of fees? Nucleus Wealth uses a Separately Managed Account structure. For most investors (that are not in a pension phase), a Separately Managed Account allows tax deductions that can lower the effective fee.

Is Nucleus Wealth’s fee structure for investments for short-term hold periods the same as long-term hold periods?

Like long-term investments, short-term investment fees are also charged monthly in arrears (at the end of month).

However, under 12 month investments are typically not ideal as there is too much market risk in comparison to sitting on it in cash.

Why may I get charged by an Exchange Traded Fund (ETF) when investing with Nucleus Wealth? Why pay another fee to Exchange Traded Funds when I am already paying Nucleus Wealth?

Nucleus Wealth holds an array of different investment portfolios, some of which may hold Exchange Traded Funds. Exchange Traded Funds are sometimes an efficient way of lowering overall costs. We use these funds where buying the underlying assets directly would be cost-prohibitive or where you do not have enough funds to get an appropriate level of diversification.

In these scenarios, Nucleus Wealth makes an assessment of the returns available given the cost of investment before making any investment. Nucleus Wealth gains no monetary benefit from any Exchange Traded Fund and any fees from these funds are deducted from the returns published.

Are larger account or grouped family accounts eligible for a discounted Administration Fee (Praemium Platform Fee)?

Yes.

Either aggregated family accounts or higher balances are eligible for administration fee discounts. The discounts apply as a bracket system, much the same as income tax. So, different portions of balances attract a different level of fees.

Can I invest using my personal superannuation account?

Yes.

Nucleus Wealth offers all investment portfolios through personal superannuation through the product Nucleus Super, which has all the functionalities of a regular superannuation fund, but with typically more transparency and personal tailoring.

Through the online onboarding tool, you can also get a quote on Life and Total and Permanent Disablement insurance, which is a stand alone policy that sits alongside the investment and is portable. Nucleus Wealth does not take commission on the insurance component to help keep it affordable. More information on insurance below.

Once aboard, Nucleus Wealth sends you a prefilled form to give to your employer, where Nucleus Super can accept additional contributions much like any other fund.

Onboarding to create the client’s Nucleus Wealth superannuation account is easy and paperless, and the Praemium platform takes care of the rollover from the client’s previous superannuation fund electronically.

What are the next steps after I complete the signup process to create a superannuation account through the Nucleus Wealth onboarding portal?

Your application gets sent to Praemium for approval. You do not need to do anything, this process usually takes 1 business day. Once approved, Nucleus Wealth will send you a form letter that you can use to inform your employer for future contributions. You will need to send this to your current employer. Typically this is the only additional task for you to perform.

Once Praemium has approved your application, it will initiate a rollover request to your existing superannuation fund. You do not need to do anything, this process usually takes 2-14 business days depending on your previous superannuation fund.

If there is a delay in the approval process, the Nucleus Wealth will liaise with Praemium to resolve and contact you with any information. A delay usually occurs when your details don’t match the details of your previous superannuation fund – for example the wrong date of birth. 

Once the rollover has been successful, Praemium will email you with your new Praemium login details (separate to their Nucleus Wealth portal login) along with further instructions.

You or your employer are not involved in the rollover process.

If you have applied to open a superannuation account with Nucleus Wealth and want to know your application status, please contact Nucleus Wealth’s Client Liaison Team on 1300 623 863, or email contact@nucleuswealth.com.

What happens after my money has been deposited into my investment account?

Once you have transferred funds into your account via BPAY (which takes around 2-4 business days), and once your funds have been received, your account moves into the execution stage.

The execution stage is where your funds are allocated into the portfolios chosen by you. 

During the execution process, Praemium initiates the trades on the stock market. The stock market opens at 10am and closes at 4pm Monday-Friday. Once trading is closed that day, the portfolios update and the next day you can view your positionings in your portal.

The whole process usually takes around 3-5 business days.

How long does it take for existing superannuation funds to rollover into a new Nucleus Super account once an application has been submitted?

It typically takes 1 business day for Praemium to approve your application, then it typically takes another 5-10 business days for Praemium to receive the rollover once the application has been approved.

 

Does Nucleus Wealth provide insurance with Nucleus Super? Who is Nucleus Wealth’s insurance provider?

Nucleus Wealth has spent considerable time in choosing an insurance partner that offers a sound and reliable insurance solution for Nucleus Wealth clients. Alongside opening a Nucleus Super superannuation account, clients are now offered commission-free personal (Life and Total & Permanent Disability) insurance cover through the insurance company Metlife

Metlife has 150 years of experience in personal insurance, and currently insures over 2.6 million Australians as the 3rd biggest group life insurer in the country. Metlife’s insurance is fully underwritten so that clients go through a screening process, which requires clients to go through a tele-application. A client can choose to have Life only, TPD only or Life with linked TPD cover. 

You must have a minimum of $35,000 in your superannuation account to avail insurance. Insurance can also be availed later down the track if you do not want it at the beginning of opening a superannuation account with Nucleus Wealth.

Can I submit an application where my addresses on my electoral roll and superannuation account are different?

Praemium needs an address for identification and verification purposes. 

However, if you are in the process of moving address, you can provide a government issued ID or driver’s license stating your old address, along with a utility bill with the same address, and this will be acceptable.

When do I receive a Super Employer Contributions form to give to my employer to redirect my superannuation contributions? Do I have to request the form manually or is the form automatically sent to me once my superannuation account is open?

The Super Employer Contributions form will be automatically sent to you by the Nucleus Wealth team within 2 business days of your account being accepted by Praemium.

 

Whilst my superannuation account application is in the process of being approved by Praemium, and whilst I do not yet have a Separately Managed Account (SMA) number with Nucleus Super, how will I prevent my employer from making any more contributions into my existing superannuation account?

Whilst your Nucleus Super account application is being approved by Praemium, any contributions made by your employer during the transition period of rolling over will still be made into your existing superannuation account. 

If you are doing a full rollover, all the funds in your existing superannuation account, including the additional contributions made during the transition period, will eventually be rolled over. 

If you are doing a partial rollover, until Nucleus Wealth provides you with your new Separately Managed Account number for their new Nucleus Super account and Super Employer Contributions form to send to your employer to redirect your superannuation contributions, contributions made by your employer during the transition period will be made into your existing superannuation account. Usually these amounts are small. However, if you want these recent contributions moved into your new Nucleus Super account, you can just request Praemium to initiate another partial rollover. To initiate this request, email contact@nucleuswealth.com requesting to do another partial rollover and state the amount.

 

If my family has two or more separate superannuation accounts in Nucleus Super, can my fees be combined and reduced?

Yes.  

Either aggregated family accounts or higher balances are eligible for administration fee discounts. The discounts apply as a tired system (much the same as income tax). So different balances attract a different level of fees.

 

Does Nucleus Super offer pension accounts if I am looking to invest for retirement?

Yes, Nucleus Super offers pension accounts. 

At the ‘Applicant Stage’ towards the end of the application on the Nucleus Wealth onboarding portal, you  can opt to select a Personal Super Account Type of Pension instead of Accumulation. 

Once you have submitted your application, you will then need to make a phone booking with one of Nucleus Wealth’s financial advisors to organise the details of this account. 

That can be done from the Nucleus Wealth onboarding portal, or by calling 1300 623 863.

Can I create a joint superannuation account with my partner?

No.

A personal superannuation account can only be created for 1 person.

However, you can opt to open a Self Managed Super Fund account, which allows up to 4 people on the account.  More information on Self Managed Super Funds here and here.

 

Can I start a Nucleus Super application by initially providing personal contributions, then rollover from my existing fund at a later date?

Yes.

As you sign up on the onboarding portal, we will be able to notice that you want to open a Nucleus Super account through initial personal contributions if you do the following steps:

Step 1) Enter ‘Other’ under ‘Fund Name’

Step 2) Enter ‘Personal Contributions’ under ‘Custom Fund Name’

Step 3) Enter the amount you initially want to contribute under ‘Transfer Amount’ (minimum $10,000.00)

Step 4) Enter your mobile number under ‘Member Number’

Step 5) It would be great if you could also email contact@nucleuswealth.com of your intention to start your account with initial personal contributions so that our admin team can make sure your application is handled correctly and so that our team knows you are not ready to initiate any rollovers just yet.

What payment system does Nucleus Wealth use to transfer funds into investment accounts?

BPAY. BPAY is an electronic bill payment system that enables payments to be made and drawn between Nucleus Wealth and registered clients.

 

What are the payment limits of BPAY?

They vary from bank to bank. Many banks will allow you to increase your limit temporarily (say for one day) in order to transfer a larger amount. Many banks allow this through phone banking.

Alternatively, you are able to split a larger funding payment into smaller transactions across multiple days and once your account is fully funded, Nucleus Wealth will trade your portfolio.  For example, you could break up a $100,000 account funding transaction into 4 $25,000 funding payments over consecutive days, and once the full $100,000 is received, Nucleus Wealth will trade your portfolio.

What are the next steps after I complete the signup process to create an investment account via the Nucleus Wealth onboarding portal?

Once you have completed your application on the Nucleus Wealth portal, we cross-check your details with GreenID to verify your identity. 

Once your details are verified, Praemium approves your application and creates a Separately Managed Account number, which is sent to you, as well as the BPAY number which enables the transfer of funds to occur.

What happens after my money has been deposited into my investment account?

Once you have transferred funds into your account via BPAY (which takes around 2-4 business days), and once your funds have been received, your account moves into the execution stage.

The execution stage is where your funds are allocated into the portfolios chosen by you. 

During the execution process, Praemium initiates the trades on the stock market. The stock market opens at 10am and closes at 4pm Monday-Friday. Once trading is closed that day, the portfolios update and the next day you can view your positionings in your portal.

The whole process usually takes around 3-5 business days.

How long does it take to sell all holdings within my portfolio and keep it in cash until I am ready to invest in the Nucleus Wealth portfolios again?

Praemium’s cut-off is 9:30am AEST, so the instruction to sell your positions must be long enough before the cut-off time for Nucleus Wealth to process the instructions in Praemium to execute the sell trades. International stocks may take a couple of days longer, as foreign brokers are used and foreign markets may experience national holidays differently to the Australian market.

 

I have completed most of the onboarding portal application, however on the ‘Applicant’ page I am unable to click the “begin verification now” button. Why is this?

You are probably using a work laptop with high security, an old browser or using an adblocker. You should try logging into your portal account using a personal device and see if you can click the verification button.

Existing clients

How is my employer told of my new super account’s details?

The Super Employer Contributions form will be automatically sent to you by the Nucleus Wealth team within 2 business days of your account being accepted by Praemium.  You should then pass these details on to your employer and get confirmation that they have updated their records to reflect your new super account’s details.

How do I make personal contributions to my super account?

Methods of contribution:

Concessional (tax deductible)

The easiest way to make an additional contribution is through your usual payroll process. This will be deposited in the normal way with your Superannuation Guarantee (employer provided contributions) and will automatically be marked as concessional on your account. But you can also make additional concessional-contributions via bank transfer or cheque.

If you would like to make a personal contribution which you plan to then deduct from your income as a tax deduction, you must follow the steps below:

  1. Fill in this Super Member Contribution Notification form, which also has the payment methods on the second page
  2. Return the signed form to support@praemium.com.au
  3. You must provide a wet signature (not digital) and date on the form. Praemium will not accept digital signatures
  4. Make the payment using the methods in the form above
  5. Before the end of the financial year, complete and return this Notice of Intent to Claim ATO s.290-170 form to allocate any contributions as concessional and claim the tax deduction in your annual tax return

Non-concessional

Non-concessional contributions are those made above the contribution cap (see below). They cannot be deducted against your income for tax purposes. As noted above, all payments made on your behalf by your employer are concessional. Therefore you can make non-concessional contributions via bank transfer or cheque. 

  1. Fill in this Super Member Contribution Notification form, which also has the payment methods on the second page
  2. Return the signed form to support@praemium.com.au
  3. You must provide a wet signature (not digital) and date on the form. Praemium will not accept digital signatures
  4. Make the payment using the methods in the form above

Finding out how much of your concessional cap you have left

You can determine how much has been contributed at any time through your Praemium client portal. Simply head to the ‘Accounts’ screen of the portal.

The ATO website will show you what the contribution limits are.

If I have been affected by COVID-19, can I access my superannuation early?

The COVID-19 early release-of-super program closed on 31 December 2020. You can no longer apply for early access to some of your superannuation.  Below is the process that was applicable until 31 December 2020, and we still have it here for your information (in case the program becomes available again in 2021, for which at the moment there is no intention for this to happen).

To make a claim, you will need to access the myGov website, and be connected to the Australian Tax Office (ATO). For help with this please click here.

Once you have entered the ATO area in myGov, select the ‘View’ button for COVID-19. From there, click the ‘Apply’ button in the ‘Early Release of superannuation’ section. This will then run you through the application process.

Once complete, the Australian Tax Office will process and submit the request for payment from your superannuation account. This request needs to be responded to within 5 business days, and payment should take place shortly after to the bank account you have specified in the application.

How do I transfer a partial or full balance amount from my existing super fund into my SuperSMA account with Nucleus Wealth?

You will need to fill in this Easy Transfer form, which needs to be sent to support@praemium.com.au, and CC contact@nucleuswealth.com

You must provide a wet signature (not digital) and date on the form. Praemium will not accept digital signatures.

 

How do I make a Spouse Contribution?

When wanting to make a contribution into your spouse’s superannuation account, fill in this Super Member Contribution Notification form:

Step 1: Fill out the receiving spouse’s details in Part 1.

Step 2: Fill in the amount you want to contribute into the “Spouse Contribution” field in Part 2.

Step 3: Get the receiving spouse to sign in Part 3.

Step 4: You must provide a wet signature (not digital) and date on the form. Praemium will not accept digital signatures.

Step 5: Email the completed form along with certified ID to support@praemium.com.au, and CC contact@nucleuswealth.com

 

I am self employed/run my own company, how do I make an Employer Contribution?

When wanting to make an employer contribution into your own receiving superannuation account, fill in this Super Employer Contribution form:

Step 1: Fill out the receiving account’s details in Part 1.

Step 2: Fill in the amount you want to contribute into the “other (please specify)” field in Part 2, and specify that it is an ‘Employer Contribution’.

Step 3: Get the receiving account holder to sign in Part 3.

Step 4: You must provide a wet signature (not digital) and date on the form. Praemium will not accept digital signatures.

Step 5: Email the completed form to support@praemium.com.au, and CC contact@nucleuswealth.com

Step 6: Make the payment using the methods in the form above

 

How do I rollover my funds from a superannuation account to an external Self-Managed Super Fund?

When wanting to rollover your funds from your existing superannuation account to an external Self-Managed Super Fund (SMSF), fill in this Super Payment Request form:

Step 1: Fill out Part 3 and put in your new SMSF details

Step 2: Get a hold of 1) a certified copy of your ID, and 2) a bank statement or letter where your SMSF bank account is. The statement must include your account name, BSB and account number

Step 3: You must provide a wet signature (not digital) and date on the form. Praemium will not accept digital signatures.

Step 4: Email the form and the two documents to support@praemium.com.au, and CC contact@nucleuswealth.com

How can I top up my investments?

You just need to deposit more money through BPAY and the amount invested will update in your portal after 3-5 business days.

How can I make a partial withdrawal from my investment account?

Send an email from your registered email address instructing your partial withdrawal request to contact@nucleuswealth.com.

Specify: 

  • The amount you wish to partially withdraw, along with a reason for withdrawal. 
  • The bank details you wish for the funds to be paid out to. This will also help us cross-check that the bank details provided match the ones we have on file.

 Once received, Nucleus Wealth will instruct the payment back to your bank account. Any amount is fine and all investments are held in highly liquid markets. Depending on how much market activity is required, the transfer usually takes between 5 and 7 business days to be returned to your account.

Can I withdraw all of my account funding, and keep my account open?

Unfortunately withdrawing all your funds will trigger Praemium to close your account, meaning you will not be able to fund this same account in the future. However, we would of course welcome you back as a client and already have a lot of your details on file. So opening a new account in the future would be a relatively simple process.

If I have an Individual investment account and want to change it to a Family Trust account, can I move my funds directly across?

No.

You will need to liquidate your Individual account and then make a new application for your Family Trust account. If you have holdings in your Separately Managed Account (SMA) as an Individual, you cannot simply transfer ownership to a Trust account (including a Family Trust). If you had a Trust SMA set up with us and you wanted to do that, we would be required to sell down your holdings in the Individual account, which would realise a profit or loss to you (included in your personal tax return for that financial year).  Then the funds could be paid out to the bank account we have on file for the individual account.  If you would like to use those funds to pay into your trust account, you are free to do so.  Once the trust account is set up, you will be emailed the BPAY details.

If I want to open another type of account under my name (e.g. I already have an investment account then want to also open a super account) do I need to create a new portal login?

No, you can use the same portal login. Once you are logged into the portal, go to the ‘Account Type’ page, select the different account type you wish to open, and begin the application process.

If you have a joint account and also want to have two individual accounts, you will need to create a separate login for one of the accounts.

What reports do I receive at the end of the year for tax purposes?

Nucleus Wealth’s platform partner, Praemium, has one of the best reporting systems in the business, so much that it is used by major banks. At the end of the financial year, usually around September, you will be provided with a full, audited tax report that can be easily used to manage your own tax affairs. 

The typical figures your accountant needs, such as realised capital gains, income, distributions and franking credits are provided in much the same way as a share broker end of year report.

How do I process a full withdrawal and close my account?

Send an email from your registered email address instructing your full withdrawal and account closure request to contact@nucleuswealth.com.

Specify: 

  • Your reason for withdrawal leading to your account closure. 
  • The bank details you wish for the funds to be paid out to. This will also help us cross-check that the bank details provided match the ones we have on file.

 Once received, Nucleus Wealth will instruct the payment back to your bank account. Any amount is fine and all investments are held in highly liquid markets. Depending on how much market activity is required, the transfer usually takes between 5 and 7 business days to be returned to your account.

Is my Nucleus Wealth portal login the same as my Praemium online account login?

No, your Nucleus Wealth portal login is different to Praemium’s online account login as they are two separate platforms. However, when creating the Praemium login, your username should be the same, which is your email address.

How often is my portfolio valued?

The portfolios all hold exchange traded securities and AUD cash, and hence valuation updates are on a daily basis.

How do I allocate new funds to one of the existing portfolios I have on my account?

Although Nucleus Wealth does offer the ability for you to change your splits/weighting between portfolios, we do not offer the ability on the client portal for you to select one portfolio to allocate new money. 

Contact us on 1300 623 863 or email contact@nucleuswealth.com to request to allocate new funds to your chosen portfolio. Once your request has been granted, we will direct your new funds to 1 portfolio from our back end and send you a confirmation email once completed. Upon your initial request, you should specify if you would like this done for all new funds going forward, or if it’s just a one off.

My account balances look wrong on Praemium. What do I do?

Log in to the Investor Portal in Praemium. In the top right, click on the drop down box and select “Status/Refresh”.  Your account balances should now be reflected correctly.

How can I request for some of my funds to be temporarily moved to cash in my SMA account?

Send an email from your registered email address instructing your request to contact@nucleuswealth.com.

Specify:

  1. The amount you wish to temporarily move to cash, along with a reason for the transfer
  2. Your SMA account number

Once received, Nucleus Wealth will fulfil the request in 1-2 business days. Any amount is fine as all investments are held in highly liquid markets.

What happens to dividends?

All dividends are accepted in cash. Portfolios automatically default to reinvesting dividends, but this can be turned off by sending us a request to contact@nucleuswealth.com

For investment accounts, if you request to not have dividends reinvested,  your dividends will be swept into the bank account we have on file for you. Funds will be swept 24 – 48 hours after the dividends are received.

For superannuation accounts, if you request to not have dividends reinvested, we would instruct Praemium to direct your dividends into a cash portfolio, which would accumulate until you instruct us to allocate it to an investment at a later date or roll it into another superannuation fund.

What is the payment schedule for dividends?

If your SMA account is still open (active), dividends tend to be deposited into your account when they’re received and are automatically reinvested in your portfolios. However, if you wish to receive periodic income from your account, please send your request to contact@nucleuswealth.com and one of our team members will assist you.

If you have closed your SMA account, however, any final dividends will be paid at the beginning of the following month (i.e. if the dividends were received in mid February, then the payment will be made at the beginning of March).

How do I update my personal details on Nucleus Wealth and Praemium (mobile number, email address, postal and residential address)?

Updating your mobile number:

  • Email contact@nucleuswealth.com your request to update your mobile number
  • In the email, include your old mobile number, then include your new mobile number
  • Email us using the email address that we have on file for you
  • Note that the updated mobile number will be used to send verification codes as you log in to your Nucleus Wealth client portal
  • One of our Nucleus Wealth client support will confirm with you once your details have been updated

Updating your email address:

  • Email contact@nucleuswealth.com your request to update your email address
  • In the email, include your current email address, then include your new email address
  • Email us using the current email address you have on file with us, and CC your new email address in your request
  • If your old email address is already deactivated, give us a call to work through the security questions and make the change
  • Note that the updated email address will be your new Nucleus Wealth portal and Praemium portal userID to login. However, your Nucleus Wealth portal and Praemium portal logins are separate, so your passwords may not match
  • One of our Nucleus Wealth client support will confirm with you once your details have been updated

Updating your postal and residential addresses:

  • Email contact@nucleuswealth.com your request to update your postal and/or residential address
  • Specify if your postal address is different from your residential address, and which type of address you wish to update
  • In the email, include your current address, then include your new address
  • Email us using your current email address you have on file with us
  • Attach a utility bill or other document that displays your full name, mobile number and new address
  • One of our Nucleus Wealth client support will confirm with you once your details have been updated

Too much information

Looking for even greater detail? We’ve uploaded a host of information on our too much information page. It details our organisation & staff, compliance & risk management, investment philosophy, custody of assets and much more.

Additional questions? Don’t hesitate to contact us via email or booking a call

 

 

Tim Fuller is an Authorised Representative of Nucleus Advice Pty Ltd – AFSL 515796.