Nucleus Financial, a wrap platform business owned by UK independent financial advisors, has unveiled a new model portfolio tool for advisors to match client assets more closely to their risk profile.

“This [asset] re-balancing tool will help advisers to demonstrate to their clients that their investments will remain in line with their appetite for risk and financial circumstances,” Andy Smith, chief technology officer at Nucleus, said.

Although most asset classes were hit by the financial crisis, traditional asset allocation theory holds that a diverse mix of investments is important in achieving the kind of investment returns that an investor wishes for a given level of risk.

According to current investment thinking, asset allocation accounts for the majority of the variation in investment returns, with stock-picking and market-timing accounting for a small fraction of such variation.