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 people get a really good idea of what we do and how we can help them, but there is always more we can provide.
So in that I thought I might put together a list of commonly (and sometimes not so commonly!) asked questions, with responses, that I have come across and that you might like to know yourself. Please enjoy.
Yes, we have decided to charge a flat 0.64% across all funds and asset classes. This is predominately to simplify understanding for our investors, but also to ensure that our movements in the portfolio are understood to be for your interests, and not just to move to an asset class that benefits our bottom line. You can see a more detailed breakdown of our fees here
The fee schedule in the Letter of Engagement / Statement of Advice is what is charged. The only variance may come from our estimates of initial brokerage, where we have estimated the high water mark (as the platform can ‘cross’ stock with other investors which means less market activity).
Fees are calculated daily on the balance in the platform and charged by Praemium monthly in arrears.
As all investments made through Nucleus Wealth are discrete and individual portfolios, the only exit fees that apply are the relevant brokerage to sell down your account. We can estimate this for you if required, and it is typically no more than 0.15% of the total investment if you have direct international shares in the portfolio.
Praemium (the external platform we currently use) trades daily and we can sell down in tranches or the entire account with a day notice. Typically, the proceeds of sale are returned to your nominated bank account within 4 business days.
All stocks are held beneficially in your name and are always in highly liquid markets. We have no capacity to ‘freeze’ or hold any of your investments in any way. Basically, you advise on your preference in how you would like to exit and I can execute this for you.
Common question! Always happy to accept more, just transfer to the cash account through BPAY. Additional funds usually take around 3 business days to appear in the account, and will be automatically added to the portfolio. No extra costs, just the brokerage for those trades.
We can’t promise a mechanism as such, however with regular posting on this site, monthly reports and other online publications we do I would suggest that this could serve as this notice?
Remember that the Core International portfolio provides coverage to the other 98% of world markets and that in the event of one major market looking worrisome, it leaves a lot of other ones to find value. If you wish to make a change to the portfolio, simply head to the Nucleus Wealth Client Portal, select the account in question and adjust using the ‘Change Portfolio’ feature.
We are expecting Core International portfolio turnover of around 20-30% pa. in the current environment. Obviously, in poorer times, we may need to raise this. As an investor, you have full visibility through the platform client portal, which gives you full transparency of your portfolio, cash holdings and fees/transactions.
The is also the Nucleus Wealth Client Portal which provides an in-depth look at all your accounts with us, including asset allocation breakdowns, sector weightings and an analyst report on every stock in the portfolio.
In regards to the benchmark figures, we have picked a similar benchmark to the Future Fund that reflects the risk level in the portfolio. We had the option of a ‘blended index’ figure or CPI+, and have opted for CPI+ to help simplify comprehension of the internal risk levels of each model.
Integrity Private Wealth is an affiliate company who used to provide our AFSL authorisation. The two directors, Simon and David, sit on our asset allocation committee and offer an additional viewpoint from their combined 40 years in the investment management industry. They have their own discrete investment advice business. We now are authorised under our own licence (Nucleus Advice Pty Ltd – AFSL 515796).
Ultimately the accountability of any investment outcome rests with Damien Klassen, David Llewellyn Smith and the team at Nucleus Wealth.
Tim Fuller is an Authorised Representative of Nucleus Advice Pty Ltd – AFSL 515796.