Ownership and planning are key to great investment.

Nucleus Wealth investment structure

 Is the structure safe?

The investment platform used at Nucleus is designed to provide a solution that is safe. The assets are held in custody on your behalf by JPMorgan Chase & Co, one of the worlds largest banks, ensure that your assets are where they are meant to be. Nucleus instructs the bank where to invest the funds but has no access to withdraw funds.

The biggest recent scams of recent times – Madoff in the US, Astarra in Australia – did not have separate custodians. Make sure your investment manager has one. And a reputable one.

Is the structure transparent?

The investment platform used at Nucleus is transparent. Every stock, every bond, every trade. Full transparency.

What shares do you own? How much trading does your manager do? If you have multiple managers/funds are they doubling the risk, or maybe taking offsetting bets so that you will lose either way?

Nucleus wants to invest the core or nucleus of your wealth. But we understand that you will own other assets like houses or private businesses. You may have a share trading account or other financial advisors. That is why we give full transparency: you can see every share, every bond and every trade on your portfolio.

Is the structure tax efficient?

One major frustration of using managed fund investments is the inability to move your individual assets without selling down and potentially exposing yourself to a tax liability.

While managed fund structures offer a number of benefits, one of the key criticisms is the treatment of tax. When your money is pooled with other investors, the tax is also pooled. While you may invest and then hold for a long period of time, others may be coming and going, and the trading that takes place to put new investors into the fund and exit old investors can have tax consequences for you. When funds are growing this can work in your favour, when they are shrinking it often goes into reverse.

Nucleus uses a separately managed account structure. Your assets, in your name, with your tax liabilities and benefits. No one else’s trading will affect your tax situation.

Franking credits are in your name. Tax Deferrals? In your name. Capital gains discounts? In your name as well.

This means that our clients can be assured that their investments can be tailored to their personal requirements, and any tax efficiencies from minimising capital gains and maximising franking credits belong completely to them.

If you ever decide to leave Nucleus, you can take your shares with you – no need to pay capital gains tax or trading costs just because you want to change managers.

Is the structure cost efficient?

The investment platform used at Nucleus allows transfers of individual shareholdings in and out of your portfolio, negating the need to ‘sell down’ and worry about capital gains tax or trading costs.

On top of that we ‘bundle’ share trades to make sure that our clients pay a fraction of brokerage found elsewhere.


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