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 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.

Diamond Ratings help advisers segment the funds available in each sector because they indicate, at a glance, where for example Risk Targeted Fund Families or Multi-Asset Funds sit in the market based on both performance and a range of key qualitative attributes.

In summary, Defaqto Diamond Ratings:

  • Are a natural evolution of our established research into managed funds and renowned consultancy activity
  • Are whole of market across the sectors they cover
  • Uniquely rate families of funds 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, costs and distribution
  • Are backed by Defaqto’s established and independent brand

Diamond Ratings are available, in full, within our research software for advisers - Engage - enabling intermediaries to compare a shortlist of funds and fund families, and to research the market generally.

What areas do Diamond Ratings cover?

Diamond Ratings currently cover:

  • Risk Targeted Fund Families
  • Risk Focused Fund 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
  • Index Trackers - Exchange Traded Funds and Open Ended Funds
  • Income Funds across Multi-Asset, Equities and Bonds
  • Absolute Return Funds

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.

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