Defaqto, one of the UK’s most trusted sources of financial product and market intelligence, has announced the addition of Star and Diamond Ratings for EIS (Enterprise Investment Scheme) funds and VCTs (Venture Capital Trusts) to its existing suite of product ratings. The move follows Defaqto’s acquisition of tax-advantaged investments specialist, MICAP, in July this year.
MICAP is the recognised market leader in the provision of independent research and advice tools on tax-advantaged products. The new Star and Diamond Ratings will leverage MICAP’s data on the tax-advantaged market and apply Defaqto’s trusted methodology to assess quality and performance.
The MICAP platform is used by more than 1000 IFA and wealth management firms and provides advisers with clear, independent information on VCT, EIS, SEIS and Business Relief products, as well as digital application forms and post-investment consolidated reporting.
Defaqto has been providing an independent, robust and trusted assessment of the quality of products through Star Ratings and Diamond Ratings since 2015, including a wide range of advised product areas as well as funds and fund families. A product’s Star Rating is a measure of the quality of features whilst a Diamond Rating is an indication of product performance. These two ratings therefore help advisers and consumers assess products at-a-glance.
John Milliken, CEO of Defaqto, said “By combining Defaqto’s mission-critical technology and unrivalled understanding of financial planners’ needs with MICAP’s specialist data, we are perfectly placed to support advisers and inform consumers in the tax-advantaged investment markets.
“Defaqto has a reputation for excellence that is trusted by consumers. Research tells us that 88% of consumers are more likely to choose a Defaqto-rated product, and 80% of our adviser clients use Defaqto Ratings as part of their selection criteria. The new Star and Diamond Ratings for EIS funds and VCTs will help advisers when they discuss tax-advantaged investment options with their clients, and also when they evidence their recommendations. It’s a massive opportunity to raise the profile of a market segment that is really important to us and our customers.”