Novia launches portfolio tool to track long term performance

Novia has added a long term performance tool to its wrap which allows advisers to show clients exactly what their investments are worth and what return they have made over any time period.

The wrap platform said its portfolio performance review (PPR) tool allowed advisers to work out the money weighted rate of return on a client's portfolio, allowing the adviser to explain exactly what returns different investments have made.

It achieves this by recording all the money or transfers paid into it, as well as any divestments and charges.

Advisers can benchmark the actual rate of return on the total portfolio, or on individual wrappers held on the platform. 

Bill Vasilieff, chief executive of Novia, said: 'Reconciliation is often the ‘nightmare’ task for any adviser, especially for clients with a very active portfolio.'

'Advisers can be looking at literally hundreds of separate transactions, and working out the actual rate of return has been time consuming at best, and practically impossible at worst.'

Vasilieff said by taking into account all money in and out of a portfolio over a given time period, including any charges, an adviser could demonstrate how the actions they took have performed compared to a benchmark.

Huw Powell, director at IFA firm Moore Stephens Chartered Financial Planners and a user of the new tool, said: 'It helps us to evaluate and discuss with our client how our advice has impacted on the client’s actual rate of return.

'We can also go straight into the portfolio and look at the performance of individual assets and make immediate changes if appropriate.'