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.
This article is for financial professionals only. Any information contained within is of a general nature and should not be construed as a form of personal recommendation or financial advice. Nor is the information to be considered an offer or solicitation to deal in any financial instrument or to engage in any investment service or activity. Parmenion accepts no duty of care or liability for loss arising from any person acting, or refraining from acting, as a result of any information contained within this article. All investment carries risk. The value of investments, and the income from them, can go down as well as up and investors may get back less than they put in. Past performance is not a reliable indicator of future returns.