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 a tactically managed portfolio that serves clients looking to invest between $35 and $200 thousand, called Tactical Foundation which uses cash, bonds, Australian shares and international exchange traded funds and around 35 holdings.

For those looking to invest above $200 thousand, we can offer our flagship portfolio’s called Tactical Growth, Income and Accumulation. These use a diversified blend of direct international shares instead of exchange traded funds, can be blended to provide greater risk tailoring and have between 80 and 100 holdings.

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 29 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 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?

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

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

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

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

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 and 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 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, 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 country 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 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 Foundation – $35,000

Tactical Growth – $200,000

Tactical Accumulation – $200,000

Tactical Income – $200,000 (for lower investment balances, please contact us)

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?

Yes.

Omnibus cash deposits’ of the Scheme is protected up to $250,000 as it is held in a trust account with a covered Authorised Deposit-taking Institution.

The Financial Claims Scheme provides protection for depositors of banks, credit unions and building societies that are incorporated in Australia (also known as authorised deposit-taking institutions or ADIs), for deposits up to $250,000 per account holder per Authorised Deposit-taking Institution. The scheme aims to return deposits to account holders within seven days of activation of the Financial Claims Scheme. 

The Financial Claims Scheme applies to a wide range of deposit accounts held with Authorised Deposit-taking Institutions that are incorporated in Australia, but only applies to deposit accounts with funds in Australian dollars. Under the Financial Claims Scheme an account holder can be the trustee(s) of a trust (e.g. the account holder is Praemium as trustee of the trust/Scheme).

The Scheme’s custodian, HSBC Bank Australia Limited, is an Authorised Deposit-taking Institution covered under the Financial Claims Scheme. 

Other protection and assurance is that it is a registered managed investment scheme that is regulated by ASIC and assets are held by an external regulated custodian. Responsible Entity & custodian must comply with certain capital and investor protection requirements e.g. assets held on trust. 

Regulatory Guide 133 can be found here, and Regulatory Guide 166 can be found here.

 

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.

4 Tactical Portfolios: Tactical Foundation, 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 has a tactically managed portfolio that serves clients looking to invest between $35,000 and $200,000, called Tactical Foundation which uses cash, bonds, Australian shares and international exchange traded funds (ETFs) and around 35 holdings.

For those looking to invest above $200,000, Nucleus Wealth offers their flagship portfolios called Tactical Growth, Income and Accumulation. These use a diversified blend of direct international shares instead of exchange traded funds, 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.

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. 

 

There are two types of explicit fees:

An investment management fee

A platform administration fee

 

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

 

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.

Brokerage Cost

Brokerage costs are charged when your account trades. 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.

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

Typically, it takes 1 business day for Praemium to approve your application, then it takes another 5-10 business days for Praemium to request 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.

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, there is a tiered fee and administration fees from multiple accounts can be combined to reduce 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.

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

BPAY. BPAY is an electronic bill payment system which 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.

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, 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.

What happens next to my money once it 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 Praemium to sell all stocks within my portfolio and keep it in cash until I am ready to go back in?

Praemium’s cut off is 9:30am AEST, so the money needs to be in your account long enough for Nucleus Wealth to give instructions to Praemium to execute the trade. International stocks will be sold that night.

Are dividends reinvested?

All dividends are accepted in cash, then reinvested in the portfolio according to model weights, so this may result in the purchase of stocks other than the ones paying the dividend.

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.

Current clients

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.

How do I add personal contributions into 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. 

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 form, which also has the payment methods on the second page: 
  2. Return the signed form to support@praemium.com.au
  3. Make the payment using the methods in the form above
  4. Before the end of the financial year, complete and return this form to allocate any contributions as concessional and claim the tax deduction in your annual tax return.

Non-concessional (from your bank account)

  1. Fill in this form, which also has the payment methods on the second page: 
  2. Return the signed form to support@praemium.com.au
  3. 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. 

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

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 form, which needs to be sent to contact@nucleuswealth.com and support@praemium.com.au.

 

How do I make a Spouse Contribution?

When wanting to make a contribution into your spouse’s superannuation account, fill in this 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: Email the completed form 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 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: Email the completed form to support@praemium.com.au, and CC contact@nucleuswealth.com

Step 5: Make the payment using the methods in the form above

 

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 withdraw money from my investment account?

You will just need to send through an instruction to Nucleus Wealth’s central inbox, contact@nucleuswealth.com. 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 4 and 6 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 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 close my account?

Any drawdowns or account closure requests can be sent to contact@nucleuswealth.com. Nucleus Wealth can instruct the closure within a business day, traded the following market day and money returned usually in about 6 business days.

Does Nucleus Wealth offer a referral program?

Yes.

Nucleus Wealth can create a link up that can be sent through to you. We offer a $50 movie card (or another form of cashcard) or you can opt for a $50 donation to a charity of your choice for referrals that sign up using the link.

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 account to allocate new money. 

Contact us on 1300 623 863 or email contact@nucleuswealth.com to request to allocate new funds to your chosen account. 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.

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.