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Defaqto’s 2015 Diamond and Star Ratings now live

Monday 9th February 2015

This month Defaqto has announced the launch of the 2015 Diamond Ratings and Star Ratings.
These ratings – used by many investors and advisers - provide 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.
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 an independent assessment of fund families as well as individual funds across the rated categories:
Risk targeted fund families
Risk focused fund families
Unitised DFM fund families
Multi-manager return focused funds
Multi-asset return focused funds
Index trackers (open ended funds)
Index trackers (exchange traded funds)
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:
Investments (including DFMs – managed portfolios, bespoke solutions and MPS on Platform – onshore and offshore bonds and platforms)
Life and protection (including critical illness, income protection, mortgage PPI, protection menu plans and private medical insurance)
Auto-enrolment schemes – including separately rating the trust based schemes and the contract based schemes
New for this year, 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.
Commenting on the launch of this year’s ratings, David Cartwright, Head of Insight and Consulting (Wealth and Protection), said: “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.
Frank Potaczek, Head of Insight and Consulting (Investments), added: “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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Editorial Contact Details - Conor Shilling
0845 672 6000
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