Defaqto has launched the 2015 Diamond Ratings and Star Ratings, which provide an independent, robust and trusted assessment of the quality of financial products and funds – including a wide range of advised product areas as well as funds and fund families.
In an increasingly complex financial market, Defaqto Ratings help advisers easily get an overview of where propositions sit and provide financial advisers, and their clients, with post-recommendation assurance.
2015 Diamond Ratings
Defaqto Diamond Ratings give funds and fund families an independent rating of 1 to 5, helping advisers see where they sit in the market in terms of performance and competitiveness in key areas such as cost, scale, access and manager longevity. Diamond Ratings provide a unique approach to assessing the fund universe.
In certain fund areas it can be an advantage to start research at fund family rather than individual fund level. Typically, this contributes to consistency in the adviser approach and often allows advisers to move clients from one fund to another, should portfolio readjustments require it, in a quicker and more cost-efficient way.
That is why Diamond Ratings provide an independent assessment of fund families as well as individual funds across the rated categories:
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Risk targeted fund families
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Risk focused fund families
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Unitised DFM fund families
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Multi-manager return focused funds
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Multi-asset return focused funds
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Index trackers (open ended funds)
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Index trackers (exchange traded funds)
2015 Star Ratings
Star Ratings assess the quality and comprehensiveness of the features and benefits financial products offer. As with Diamond Ratings, Star Ratings give each proposition a rating of 1 to 5.
The financial product and service areas covered by Defaqto Star Ratings include:
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SIPPs
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Investments (including DFMs – managed portfolios, bespoke solutions and MPS on Platform – onshore and offshore bonds and platforms)
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Life and protection (including critical illness, income protection, mortgage PPI, protection menu plans and private medical insurance)
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Auto-enrolment schemes – including separately rating the trust based schemes and the contract based schemes
New for 2015 – Defaqto has introduced Star Ratings for Platform SIPPs, which assess those SIPPs specifically that are platform based and, importantly, it acknowledges the polarisation of the SIPP market between these and the more bespoke, independent SIPPs.
To find out more about Defaqto Star Ratings and Diamond Ratings – including the detailed, robust methodology underpinning them – and to access the Ratings, advisers can visit:
Star Ratings defaqto.com/advisers/star-ratings
Diamond Ratings defaqto.com/advisers/diamond-ratings
Both Star Ratings and Diamond Ratings can also be viewed in adviser software Engage defaqto.com/advisers/solutions/engage
David Cartwright, Head of Insight and Consulting (Wealth and Protection), says:
“The range and complexity of products and fund propositions has grown significantly in recent years. Our Star Ratings and Diamond Ratings support the research process across a very wide range of areas by helping advisers and adviser firms instantly see where a proposition sits in the market – without having to spend the time doing this initial research themselves.
“Defaqto Ratings are also a powerful mechanism for giving advisers and brokers, and their clients, post-recommendation assurance by signposting the quality of a proposition they have selected for their client.
“Importantly, our Ratings are completely independent and we rate the individual propositions, not the provider or fund house – we also cover all offerings in the areas covered by our Ratings.”
Frank Potaczek, Head of Insight and Consulting (Investments), adds:
“Through assessing a wide range of quantitative features, as well as our focus on the fund family in certain areas, our Diamond Ratings provide a unique approach to assessing the fund universe.
“Propositions reaching the threshold of 3 Diamonds or above represent a good offering to the market and, similar to Star Ratings, our Diamond Ratings therefore help advisers both with their initial research and provide them (and their clients) with comfort post-recommendation.”
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