Defaqto Diamonds are an Adviser’s best friend
We are very proud of our 5 star Defaqto ratings in so many areas of the proposition we deliver to financial advisers. So we are beyond delighted to have received Defaqto’s Diamond ratings for some of our top rated portfolios.
As ratings go, diamonds reach way beyond stars. Star ratings focus on the range and sophistication of product features, but not on client outcomes, a critical theme for advisers. Diamond ratings take a whole range of key qualitative attributes into account, including a view on fund performance.
But performance is a function of risk, right? Diamond ratings also assess the equation of risk taken for the reward achieved.
Going further, there is a qualitative tilt in the assessment which looks at whether a solution is “good but not operationally scalable”, or “good – but brand new and not time tested”.
To get a 5 Diamond Rating for an investment fund means it is verifiably one of the industry’s leading contenders across a range of important criteria – including value and outcomes.
A powerful sign for clients
Because of advertising by insurers, banks, investment houses and platforms, and critically, their appearance on comparison websites, the average consumer’s awareness of Defaqto’s rating service is high. On the latest survey, over three quarters of the public recognise what their brand stands for.
When introducing beginners to the world of investment, something that is a closed book to most people, Diamond ratings can help inspire confidence and trust. Investing does not look simple and transparent to most people, so independent recognition really does help.
If you’d like to know more about our Diamond rated investment portfolios, talk to Client Services.
Defaqto Rating Highlights
Here is a summary of Parmenion’s Defaqto Ratings. The full range of ratings will be available to advisers using the Defaqo Engage system.
|Proposition area||Rating||How assessed|
|DFM Service||Gold||Adviser survey responses: please support the 2019 survey.|
|Adviser Platform||5 Stars||Full list of product features assessed with 4 and 5 stars only available if core features list met in entirety.|
|SIPP Drawdown||5 Stars|
|DFM (MPS)||5 Stars|
|Multi Option Strategic Active||5 Diamonds||Fund performance and competitiveness in areas of cost, scale, access and manager longevity.|
|Multi Option Strategic Passive||5 Diamonds|
|Ethical A||5 Diamonds|
|Ethical B||5 Diamonds|
|Ethical C||5 Diamonds|
|Ethical D||5 Diamonds|
“The above article is intended to be a topical commentary and should not be construed as financial advice from either the author or Parmenion Capital Partners LLP. If a client wishes to obtain financial advice as to whether an investment is suitable for their needs, they should consult an authorised Financial Adviser. Past performance is not an indicator of future returns.”
Any news and/or views expressed within this document are intended as general information only and should not be viewed as a form of personal recommendation. All investment carries risk and it is important you understand this. If you are in any doubt about whether an investment is suitable for you, please contact your financial adviser.