Novia, the UK-based wrap provider, has unveiled a new client portfolio analysis tool which allows advisors to create graphic illustrations comparing existing and model portfolios.

Model Portfolio Evaluator is designed to clearly illustrate how a client’s actual portfolio compares to one or more model portfolios that are deemed to accurately reflect their individual risk/return profile. As such MPE can provide a powerful visual to help identify the need for portfolio restructuring clearly, according to Novia.

Using MPE, advisors plot the current performance of a portfolio held off the platform and compare this on a risk/return basis to model portfolios that have been pre-established on the platform. Advisors can either build their own model portfolios or opt to use those constructed by a selected discretionary manager.

MPE is the latest in a range of tools devised by Novia to help advisors create, deliver and analyse clients’ portfolios. One that stands out as being particularly interesting is a client reporting tool which produces explanations of how a portfolio has been constructed, and so assists advisors in generating transparent and compliant reports.

One of the outcomes of the financial crisis is an increased emphasis on transparency, from both clients and regulators. Firms are more conscious than ever that they must disseminate clear and detailed information to clients on their investments, not only to ensure compliance with regulatory standards, but also as a means to reassure clients who may - understandably – be nervous following the losses so many sustained last year.