More about Diamond Ratings
We are in continuous dialogue with advisory businesses and they have told us that they require an independent assessment of the fund and model portfolio (MPS) family arena as well as the fund universe. And, of course, for compliance reasons, such an assessment has to look at the whole market across the sectors covered.
In response to this, we launched our comprehensive Defaqto Diamond Ratings back in 2013.
Diamond Ratings will help you segment the funds and portfolios available in each sector because they indicate, at a glance, where for example Risk Targeted Fund Families or Multi-Asset Income Funds sit in the market based on both performance and a range of other key attributes.
In summary, Defaqto Diamond Ratings:
- Are a natural evolution of our previous research into managed funds and renowned consultancy activity
- Are whole of market across the sectors they cover
- Uniquely rate families of funds and portfolios to give advisers an insight as to whether the intended gradations of risk and return have been delivered
- Combine a quantitative assessment of both performance and numerous other data points, including manager tenure, assets under management and costs
- Are backed by Defaqto’s established and independent brand
Diamond Ratings are available within our research software for advisers - Engage - enabling you to compare a shortlist of funds and fund and MPS families, and to research the market generally.
What areas do Diamond Ratings cover?
Diamond Ratings currently cover:
- Absolute Return Funds
- Risk Focused Fund Families
- Risk Targeted Fund Families
- DFM MPS (Direct) Portfolio Families
- DFM MPS (Platform) Portfolio Families
- Multi-Manager Return Focused Funds across the four relevant IA sectors – Mixed Investment 0-35% Shares; Mixed Investment 20-60% Shares; Mixed Investment 40-85% Shares; and Flexible Investment
- Multi-Asset Return Focused Funds across the four relevant IA sectors – Mixed Investment 0-35% Shares; Mixed Investment 20-60% Shares; Mixed Investment 40-85% Shares; and Flexible Investment
- Single-Asset Return Focused Funds across UK equity; European ex-UK equity; North American equity; Japanese equity; Developed Pacific ex-Japan equity; Emerging Market equity; Global equity; UK government bonds; UK corporate bonds; and UK index linked bonds
- Index Trackers - Exchange Traded Funds and Open Ended Funds
- Income Funds – Multi-Asset; Equity; and Bond
Importantly, given that Risk Targeted and Risk Focused funds are dispersed across at least six different IA sectors, we have created our own universe to enable advisers, and their clients, to make sensible like for like comparisons. In so doing we believe that we have simplified the process of assessing these growing sectors.