Methodology

Based on our analysis of each product area, market developments or regulatory influences and open discussion with fund managers – including our annual roundtable meetings where we have open dialogue with the industry about our proposed rating criteria for the coming year – we select a set of features which we consider as ‘core criteria’.  These are areas where we believe 4 and 5 Star rated propositions should offer a minimum level of benefit. 

Propositions which fail to meet these core criteria levels will not be rated as 4 or 5 Star. We then select a further set of features, which taken with the core criteria are used to compare the offerings available across the market.

Overall rankings are calculated using a scoring method called Data Numerical Analysis (DNA). Each feature and benefit is scored from 1 to 5, with a score of 5 denoting that the proposition has the highest characteristics in the market for that element; a score of 1 indicates it has the lowest.

We use the overall DNA score to rank propositions in terms of their overall benefit to consumers. We also identify appropriate levels that determine each of the 5, 4, 3, 2 and 1 Star Ratings within each area.

As well as calculating Star Ratings, these DNA scorings feed into our data, research and comparison tools such as Defaqto Matrix, Defaqto Engage and Defaqto Compare, allowing both qualitative and quantitative comparisons of features and benefits across a wide range of financial industry sectors.

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