Defaqto Risk Ratings

Unbiased risk assessments for investments

Our impartial Risk Ratings make it easy to align a fund or MPS portfolio to a client’s agreed level of risk. If you’re an Asset Manager, they add context to your propositions and improve your visibility in a crowded market.

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Find the perfect match

Our Risk Ratings shine a light on the most suitable investments, through a workflow used by more than 30% of UK advisers. As an independent assessment of portfolio risk, they play a key role in the recommendation process and support the delivery of compliant advice.

Trusted assessments

100%

of advisers find our Risk Ratings useful to help them pick the most appropriate investment propositions.

70%

of advisers say that our Risk Ratings form part of their selection criteria. (Defaqto research 2021)

30%

of advisers base their recommendations entirely or mainly on them. (Defaqto research 2021)

Established methodology

We map funds and MPS portfolios to 10 accumulation risk profiles. A rating of 1 represents the lowest risk; 10 indicates the highest risk.

Within the risk profiles, we use the industry recognised Hymans Robertson strategic asset allocations.

Supporting compliance

You’ll find risk-rated investments as part of Defaqto Engage – an all-in-one financial planning system. For asset managers, being a part of this supports growth in assets under influence. For advisers, it allows you to agree your clients’ attitudes to risk in a compliant manner, then:

use Risk Ratings to help choose a fund from a range of multi-asset solutions select
single-asset funds, knowing they meet our target asset allocations
build your own portfolios to match investment strategies at firm or individual level.

At-a-glance ratings

Instantly assess risk positions of fund and MPS portfolios so you can deliver appropriate, compliant advice to your clients.

Integrated assessments

With Defaqto Engage, you automatically see impartial Risk Ratings alongside other product information, giving you the full picture.

Trusted process

Risk Ratings are created using Capital Market Assumptions provided by Hymans Robertson.

Accurate data

We review each Risk Rating on a quarterly basis and monitor any drift in risk levels, so you know your information is always up to date.

Partnering with us

Working with Defaqto brings you more than just market-leading products and data. Our world-class service means you’ll also enjoy access to our expertise and ongoing support.

Our insight experts are always happy to discuss the product and industry landscape as it relates to your own business. While personalised training options for you and your staff are available to help you get the most out of our services.