21 December 2020
Over 1000 risk rated funds and DFM MPSs available in Defaqto Engage
The independent technology and financial information business, Defaqto announces that it now risk rates 1047 funds and DFM Model Portfolios through its end-to-end financial planning software, Defaqto Engage.
Risk rated funds are integrated into Defaqto Engage's investment workflow. Defaqto Risk Ratings allow risk bound funds and DFMs' Model Portfolios to be assessed in terms of their risk and hence suitability for the client. The fund's Risk Rating, based on both its historic and expected volatility, can be matched to the client's risk profile, if they have completed an attitude to risk questionnaire.
Defaqto risk rated funds and DFMs are mapped to 10 Defaqto Risk Profiles. To further ensure accuracy and compliance, each Defaqto Risk Rating is reviewed on a quarterly basis.
Speaking about the organisation's latest milestone, Pan Andreas, Head of Insight and Consulting (Funds and DFM) at Defaqto comments:
“We're delighted to have reached over 1000 risk rated funds and DFM MPSs. Risk mapping reduces compliance risks for advisers, helping to ensure suitability for their clients. Using Defaqto Engage, advisers can complete the client risk profile and search for suitable funds available on their preferred platform in one end-to-end solution."
“This year has brought with it many challenges and it's encouraging to see that overall business for advisers has continued somewhat as usual, with £25bn worth of recommendations made in Engage over the last 12 months. Not only is this good news for advisers but also for fund managers who have the opportunity to improve distribution. Risk Ratings, coupled with our Qualitative Fund Reviews and more recently launched ESG reviews creates a holistic view of funds and DFMs through quantitative metrics and qualitative data that advisers can trust.”