A Shower of Stars from Defaqto
For financial professionals only
This week marks the release of the 2020 Defaqto ratings – and once again we have achieved an incredible sweep of Gold service ratings, Diamond portfolio performance ratings and 5 Star propositional scores.
Ratings – not awards
When using evidence about a provider for adviser due diligence, it is important to distinguish the significant credibility that researched ratings carry. In order to achieve a rating from Defaqto, not only have all the propositions in the market been considered but the scorings have been carried out on an objective basis and given a four eyes check by a substantial, highly experienced team. Full details can be found on the Defaqto website.
So, what has Parmenion achieved this year?
Gold Rating for Service – in Platform, in SIPP and for DFM
As so many advisers recognise, perhaps the leading feature of the Parmenion offering is the high quality of our service levels. These ratings are researched based on feedback from advisers who actually use the platform which underpins the credibility of this recognition.
‘5 Diamond’ Portfolio Performance ratings
We are particularly pleased that a number of our DFM portfolios have been recognised by Defaqto with 5 Diamond performance ratings as their assessment methodology takes in risk, cost and consistency. It is one of the fundamental tenets of our investment philosophy that performance is a function of risk. It is fruitless to claim one investment has performed better than another without making an assessment of the risks taken to achieve that reward. This is how the Defaqto Diamond ratings are made and they also look at relative expense and the consistency of our track record because sometimes performance outcomes can be a flash in the pan.
For those looking for even more detail, several of Parmenion’s portfolio ranges also carry Defaqto risk ratings allowing them to be selected quickly and confidently within the ‘Engage’ work flow after carrying out your client risk tolerance assessment.
‘5 Star’ Proposition ratings
Separate to portfolio performance outcomes Defaqto also research the market for the relative quality of propositional features and again Parmenion comes out top with 5 Star ratings. These are very powerful with consumers who will recognise Defaqto’s standing as an independent research body from a variety of other angles – from the worlds of insurance and comparison websites in particular. A 5 Star rating means that a proposition – in our case our DFM offering – has all the key features required by today’s environment compared with the entire market. And that represents a considerable saving of adviser time on research to be able to reflect that fact in recommendations.
The Defaqto Engage system looks at the entire market for financial services products, thousands of funds and portfolios. We are sometimes asked why we don’t have a 5 Star rating for our platform because it is so easy and intuitive to use. This is because the basic Platform rating on the Engage system is designed to allow comparison of open architecture wraps, which is not how our investment proposition is positioned. We are not the right home for self select trading, for example. But search for us under Adviser Platform, Drawdown or DFM and we’ll be top of the pile.
Our licensed ratings in full
5 Star Ratings – demonstrating the comprehensiveness of features offered, for
Gold Service – top level service satisfaction as voted by Advisers, for
5 Diamond Ratings – an unbiased assessment of the quality and performance of a fund or fund range, for,
PIM Ethical – A, B, C & D,
Parmenion DT Multi Option Active
Parmenion DT Multi Option Passive
Parmenion PIM Tactical Income
Parmenion Strategic Multi Option Active
Parmenion Strategic Multi Option Passive
“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.