Lipper
Encyclopedia
Lipper, Inc., a subsidiary of Thomson Reuters
, provides mutual
and hedge fund
data, analytical tools, and commentary. Lipper covers over 213,000 share classes and more than 117,000 funds located in over 60 domiciles.
Following is a list of acquired companies that now operate under the Lipper brand globally:
• Hardwick Stafford Wright Limited (HSW) - supplier of fund performance information to the UK industry.
• BOPP ISB AG - the leading Swiss provider of fund performance and analysis.
• CAMRA - the supplier of fund portfolio information and analysis.
• BT Alex Brown Investment Trusts - data business, a division of Bankers Trust International Plc.
• Fitzrovia International - a UK based provider of fund fees and expenses research.
• HedgeWorld - news, research and analysis for the global hedge fund community.
• TASS Research - the industry's hedge fund performance database.
• FERI Fund Market Information Ltd - European fund market research specialist.
Lipper provides retirement
plan analysis and reporting tools for financial advisors and retirement platform providers. In addition, Lipper offers fiduciary services and related research.
Lipper has offices located in the Americas, Europe, Asia and the Middle East.
The Lipper Leaders Rating System is a mutual fund rating system that uses investor-centered criteria, such as capital preservation, expense and consistent return.
Funds are rated on a numeric scale of 5 to 1, with ‘5’ representing funds with the highest rating or Lipper Leaders, and ‘1’ representing the lowest rated funds.
The Lipper Ratings are derived from sophisticated formulas that analyze funds against clearly defined criteria. Funds are compared to similar funds within a peer group. Each fund is ranked against its peers based on the metric used (such as Total Return or Expense), and the highest 20% of funds in each peer group are named Lipper Leaders, the next 20% receive a rating of 4, the middle 20% are rated 3, the next 20% are rated 2, and the lowest 20% are rated 1. While Lipper Leader Ratings are not predictive of future performance, they do provide context and perspective for making knowledgeable fund investment decisions.
The ratings are subject to change every month and are calculated for the following periods: three-year, five-year, ten-year, and overall. The overall calculation is based on an equal-weighted average of percentile ranks for each metric over three-, five-, and ten-year periods (if applicable).
The Lipper Ratings metrics: Total Return, Consistent Return, Preservation, Tax Efficiency (US Only), and Expense
Lipper Indices
Lipper Indices
are a set of benchmarking tools used to track, monitor and analyze fund performance. Several of Lipper’s 160 indices for the open-end, closed-end, and variable annuity universes track performance since the early 1960s.
Indices: Lipper Sector Indices, Thomson Reuters Lipper Optimal Indices, Thomson Reuters Lipper Premium Indices, Lipper Active Indices
Lipper also publishes fiduciary research reports and hedge fund research reports.
Thomson Reuters
Thomson Reuters Corporation is a provider of information for the world's businesses and professionals and is created by the Thomson Corporation's purchase of Reuters Group on 17 April 2008. Thomson Reuters is headquartered at 3 Times Square, New York City, USA...
, provides mutual
Mutual fund
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities.- Overview :...
and hedge fund
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
data, analytical tools, and commentary. Lipper covers over 213,000 share classes and more than 117,000 funds located in over 60 domiciles.
Corporate history
Lipper Analytical Services, Inc., was founded in 1973 under the direction of securities analyst A. Michael Lipper, CFA. The company's initial focus was to provide precise data and analytical perspective to mutual funds companies in the United States. In subsequent years, Lipper Analytical Services began expanding its business globally through a combination of organic growth and strategic acquisitions. In 1998, Lipper Analytical was acquired by Reuters Group PLC as a wholly own subsidiary. Lipper's global reach continued to grow as a result. In April 2008, Lipper became part of Thomson Reuters when Thomson Financial and Reuters merged.Following is a list of acquired companies that now operate under the Lipper brand globally:
• Hardwick Stafford Wright Limited (HSW) - supplier of fund performance information to the UK industry.
• BOPP ISB AG - the leading Swiss provider of fund performance and analysis.
• CAMRA - the supplier of fund portfolio information and analysis.
• BT Alex Brown Investment Trusts - data business, a division of Bankers Trust International Plc.
• Fitzrovia International - a UK based provider of fund fees and expenses research.
• HedgeWorld - news, research and analysis for the global hedge fund community.
• TASS Research - the industry's hedge fund performance database.
• FERI Fund Market Information Ltd - European fund market research specialist.
Lipper provides retirement
Retirement
Retirement is the point where a person stops employment completely. A person may also semi-retire by reducing work hours.Many people choose to retire when they are eligible for private or public pension benefits, although some are forced to retire when physical conditions don't allow the person to...
plan analysis and reporting tools for financial advisors and retirement platform providers. In addition, Lipper offers fiduciary services and related research.
Lipper has offices located in the Americas, Europe, Asia and the Middle East.
Fund ratings and Indices
Lipper Leaders Rating SystemThe Lipper Leaders Rating System is a mutual fund rating system that uses investor-centered criteria, such as capital preservation, expense and consistent return.
Funds are rated on a numeric scale of 5 to 1, with ‘5’ representing funds with the highest rating or Lipper Leaders, and ‘1’ representing the lowest rated funds.
The Lipper Ratings are derived from sophisticated formulas that analyze funds against clearly defined criteria. Funds are compared to similar funds within a peer group. Each fund is ranked against its peers based on the metric used (such as Total Return or Expense), and the highest 20% of funds in each peer group are named Lipper Leaders, the next 20% receive a rating of 4, the middle 20% are rated 3, the next 20% are rated 2, and the lowest 20% are rated 1. While Lipper Leader Ratings are not predictive of future performance, they do provide context and perspective for making knowledgeable fund investment decisions.
The ratings are subject to change every month and are calculated for the following periods: three-year, five-year, ten-year, and overall. The overall calculation is based on an equal-weighted average of percentile ranks for each metric over three-, five-, and ten-year periods (if applicable).
The Lipper Ratings metrics: Total Return, Consistent Return, Preservation, Tax Efficiency (US Only), and Expense
Lipper Indices
Lipper Indices
Lipper average
Lipper Analytical Services provides a series of indices that establish benchmarks to measure the performance of a portfolio, or of various mutual funds and Exchange Traded Funds. They allow an investor, a portfolio manager, or an institutional investor to compare the performance of his/her...
are a set of benchmarking tools used to track, monitor and analyze fund performance. Several of Lipper’s 160 indices for the open-end, closed-end, and variable annuity universes track performance since the early 1960s.
Indices: Lipper Sector Indices, Thomson Reuters Lipper Optimal Indices, Thomson Reuters Lipper Premium Indices, Lipper Active Indices
Research Series
Lipper publishes fund research reports monthly, quarterly and annually, including Fund Market Insight Reports, Fund Flows Insight Reports and Fund Industry Insight Reports.Lipper also publishes fiduciary research reports and hedge fund research reports.
See also
- Thomson ReutersThomson ReutersThomson Reuters Corporation is a provider of information for the world's businesses and professionals and is created by the Thomson Corporation's purchase of Reuters Group on 17 April 2008. Thomson Reuters is headquartered at 3 Times Square, New York City, USA...
- Lipper averageLipper averageLipper Analytical Services provides a series of indices that establish benchmarks to measure the performance of a portfolio, or of various mutual funds and Exchange Traded Funds. They allow an investor, a portfolio manager, or an institutional investor to compare the performance of his/her...
- MorningstarMorningstar, Inc.Morningstar, Inc. is an independent investment research company based in Chicago, Illinois, USA.-Businesses:Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for...
- Moody'sMoody'sMoody's Corporation is the holding company for Moody's Analytics and Moody's Investors Service, a credit rating agency which performs international financial research and analysis on commercial and government entities. The company also ranks the credit-worthiness of borrowers using a standardized...
- Fitch RatingsFitch RatingsThe Fitch Group is a majority-owned subsidiary of FIMALAC, headquartered in Paris. Fitch Ratings, Fitch Solutions and Algorithmics, are part of the Fitch Group....
- A. M. Best
- Dominion Bond Rating ServiceDominion Bond Rating ServiceDBRS is a credit rating agency headquartered in Toronto, Ontario. Founded in 1976 by its current owner and president, Walter Schroeder, it is the largest rating agency in Canada....
- Nationally Recognized Statistical Rating OrganizationNationally Recognized Statistical Rating OrganizationA Nationally Recognized Statistical Rating Organization is a credit rating agency that issues credit ratings that the U.S. Securities and Exchange Commission permits other financial firms to use for certain regulatory purposes...
- Bloomberg L.P.Bloomberg L.P.Bloomberg L.P. is an American privately held financial software, media, and data company. Bloomberg makes up one third of the $16 billion global financial data market with estimated revenue of $6.9 billion. Bloomberg L.P...