Nucleus Wealth the latest kid in the superannuation block

The universe of new-broom superannuation funds is expected to expand further in 2018 with Melbourne-based Nucleus Wealth among those expected to enter the increasingly crowded sector.

Nucleus launched a tailored separately managed account service last July and, with $14 million under management, 140 clients on board and 1500 individuals in the process of signing up, hopes to introduce a super iteration of the service by July this year.

In so doing Nucleus will join a growing list of young funds, such as Grow Super, Spaceship, Zuper, Human Super and Tomorrow Super, hoping to grab market share off the long-standing incumbents, which collectively control about $1.6 billion of retirement savings.

Head of operations Tim Fuller said that like other funds, Nucleus would have to work to retain young members, who were more likely to select fund providers with a world view in line with their own.Mr Fuller argued younger savers tended to base their investment decisions less on the past performance of a fund and more on a fund’s values and investment philosophy.

“It’s all about the future. Track records have gone out the window,” Mr Fuller said. Whereas previously investors would only have left if they had lost trust in a product or fund, younger investors might leave if they found better alignment of values or views of the world elsewhere.

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Source: Nucleus Wealth the latest kid in the superannuation block | afr.com