QuantRater
Defaqto QuantRater is our fund rating tool encompassing Unit Trusts, Life Funds and Pensions Funds that are available to retail investors in the UK.
These ratings are available to users of Defaqto Engage and provide the measure for Defaqto’s Unit Trust Best Buy tables.
QuantRater, looks at the past performance of funds and their information ratio over the past 69 months.
Past performance is used to identify consistent performance in funds. The information ratio is an assessment of the value added by the fund management over & above the fund’s benchmark in relation to the levels of risk taken to achieve it. This measure is used to proxy fund manager skill.
The resulting quantitative analysis is highly complex but orders each fund with a total performance ratio. These are then ranked as a percentile for the sector.
| Percentile | Rating |
|---|---|
| 91-100% | 5 |
| 76-90% | 4 |
| 51-75% | 3 |
| 26-50% | 2 |
| 25% and below | 1 |
The ratings are reviewed on a quarterly basis and the latest ‘5’ and ‘4’ rankings can be found below.
Background information about the QuantRater can be found below:
For more information on Defaqto QuantRater: fdonaldson@defaqto.com
