Anyone heard of 'Nucleus wrap', any opinions?

eilidhsmum

Hi, thanks for reading.
My husband and I have received some recommendations for a couple of investments from our IFA. The investments themselves seem reasonable, however he has suggested that we put them in a 'Nucleus Wrap'. He has spent a page or so explaining what it is, but I just wondered if anyone had any opinions either positive or negative on them?
As far as I can see it seems to be a way of finding out exactly how much investments are worth on a website, but there is a charge for it. I already keep track of my investments using an online portfolio service, so why would I want to pay for something that I already get for free?
Are there any other substantial benefits?
Anyone's opinion either way would be welcome.
Thanks

thrupence

eilidhsmum wrote: »

Hi, thanks for reading.
My husband and I have received some recommendations for a couple of investments from our IFA. The investments themselves seem reasonable, however he has suggested that we put them in a 'Nucleus Wrap'. He has spent a page or so explaining what it is, but I just wondered if anyone had any opinions either positive or negative on them?
As far as I can see it seems to be a way of finding out exactly how much investments are worth on a website, but there is a charge for it. I already keep track of my investments using an online portfolio service, so why would I want to pay for something that I already get for free?
Are there any other substantial benefits?
Anyone's opinion either way would be welcome.

Thanks

Yup.

http://www.nucleusfinancial.com/privateinvestors/what_is_a_wrap.html

Looks like the sort of thing you could do yourself with any fund supermarket.

Great name though....

dunstonh

a wrap takes the fund supermarket a little further in that it provides all tax wrappers in one place and has far great ability to invest. This would include ITs, ETFs, shares, retail and institutional funds (fund supermarkets get the retail versions) amongst other things. It then provides tools to view the whole lot, in one place and trade accordingly.

It sounds very good and for active investors or large portfolios they are quite good (cheaper the more you have usually). However, I am not personally a fan and prefer fund supermarkets. The wraps allow an extra layer of servicing which most people wont use after an initial "new toy" play around. Many IFAs will provide the services of a wrap on their own back office software at no cost so why the extra layer?

Nucleus doesn't seem to be a full wrap. I have glanced it in the past but to me it seems to fall between a fund supermarket and a wrap. It has all the tax wrappers but only access to investment funds.

Sometimes you can get too carried away with these things and end up paying for stuff you don't need. Its a bit like SIPPs. Expensive and unnecessary for most people yet its fashionable and some times people get carried away with fashion.

thelawnet

dunstonh wrote: »

a wrap takes the fund supermarket a little further in that it provides all tax wrappers in one place and has far great ability to invest. This would include ITs, ETFs, shares, retail and institutional funds (fund supermarkets get the retail versions) amongst other things. It then provides tools to view the whole lot, in one place and trade accordingly.

It sounds very good and for active investors or large portfolios they are quite good (cheaper the more you have usually). However, I am not personally a fan and prefer fund supermarkets.

Which are probably wraps as well.

Hargreaves Lansdown is for instance, they sell shares, bonds and ETFs.

Selftrade do too.

dunstonh

Which are probably wraps as well.

Hargreaves Lansdown is for instance, they sell shares, bonds and ETFs.

HL is not a wrap. It doenst have all the tax wrappers. Selftrade isnt either.

thelawnet

dunstonh wrote: »

HL is not a wrap. It doenst have all the tax wrappers. Selftrade isnt either.

Yes it is.

https://www.h-l.co.uk/offers/download_prospectus.pdf

"Vantage: a trading name for the Group’s fund supermarket and wrap
platform"
"wrap: an account in which the provider enables an intermediary or

investor to hold a wide range of investments, whether inside or

outside a tax efficient vehicle"

"The Group’s flagship service, Vantage, is a direct-to-private investor fund supermarket and wrap platform. Vantage offers clients the administrative convenience of being able to hold and manage their investments, including unit trusts, OEICs, equities, bonds, investment trusts and cash, irrespective of the tax vehicle, in one place with consolidated valuation reports, a single dealing service and instant online access."

"Vantage is the largest fund supermarket and wrap platform for the private investor in the UK."

"Hargreaves Lansdown provides its fund supermarket and wrap platform direct to the private investor"


A fund supermarket sells only funds. A wrap sells more than just funds, something HL definitely does.

dunstonh

I didnt realise HL offered onshore and offshore investment bonds and personal pensions on their "wrap". I thought it was just ISAs, SIPP and unwrapped

"Vantage is the largest fund supermarket and wrap platform for the private investor in the UK."

Cofunds is the largest. It has 14.8 billion (Jan 09) compared to HL with 11.1 billion (July 08). So the gap has probably got bigger.

thelawnet

dunstonh wrote: »

Cofunds is the largest. It has 14.8 billion (Jan 09) compared to HL with 11.1 billion (July 08). So the gap has probably got bigger.

I think you've missed the 'private' bit.

Cofunds is aimed at intermediaries and institutions.

dunstonh

thelawnet wrote: »

I think you've missed the 'private' bit.

Cofunds is aimed at intermediaries and institutions.

Cofunds is aimed at the private market using intermediaries. I read private on HL to mean not institutational. Although its swings and roundabouts.

Also, having just checked, HL dont offer all the tax wrappers so whilst it does have a wide range it is not a full wrap. There are very few that are though.