Member firms of Nucleus, the adviser-built wrap, are positive about their commercial prospects over the next 12 months, with 100 per cent of advisers ‘confident’ about the future of their firms and 62 per cent anticipating an increase in client numbers during 2015.
The research, which has been published in Nucleus’ annual ‘Census 2015’ report, also revealed that 14 per cent of advisers believe their business will experience ‘significant growth’ over the next year. This year’s research is based on the responses and insights of over 200 advisers and sets out to identify the key concerns and views of Nucleus’ adviser community during the coming year.
Throughout 2014, the survey reports business for adviser firms improved, with average gross turnover increasing year on year. Just under half of respondents (47 per cent) reached a turnover in excess of GBP400,000 compared with 40 per cent the previous year.
Existing clients continue to play a major part in ongoing business for adviser firms, the census results also reveal, with two-thirds of firms (66 per cent) revealing that more than 60 per cent of their business comes from exisiting clients, while just over one-third of adviser firms (35 per cent) report less than 20 per cent of business comes from new clients.
The findings from the census also highlight how face-to-face contact and helping clients ‘make sense of it all’ are the two most important elements of an adviser’s service. This result is reflected later in the survey when it’s revealed that Nucleus users are spending most of their time, 21 per cent each respectively, on ‘client reports’ and ‘time with clients’.
Social media continues to play an important role in an adviser firm as engagement of the tool continues to rise, with 72 per cent of the Nucleus community using Linkedin and 51 per cent of users on Twitter.
Other key findings from Nucleus’ census results 2015, are:
• Majority of advisers have between 100-499 clients who typically own between GBP100k-GBP250k of investible assets with the majority earning between GBP50k-GBP100k per year.
• 38 per cent of businesses manage over GBP100m at firm level and 51 per cent manage assets between GBP20m-GBP100m.
• 69 per cent of Nucleus’ adviser audience is under the age of 50 with just over one-third (34.7 per cent) aged less than 40.
Nucleus business development director Barry Neilson, says: “Our annual census provides a definitive record of Nucleus users’ progress, as they continue to grow and develop year-on-year. The latest findings reflect the positive attitude of our community, which is determined to make the most of the available commercial opportunities and position themselves to achieve further growth over the coming year.
“Our community is made up of ambitious, quality firms across the UK and the findings from this year’s census highlight that the conditions for growth are in place for the most dedicated and pro-active firms to succeed. With turnover up sharply and a strong increase in client numbers expected in the next 12 months the future looks extremely positive.”