Lipper
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| Lipper, Inc. | |
|---|---|
| Type | Subsidiary of Reuters Group |
| Founded | 1973 |
| Founder | Michael Lipper |
| Headquarters | New York City, United States |
| Industry | Financial Services |
| Website | www.lipperweb.com |
Contents |
[edit] Business Description
Lipper, Inc., a subsidiary of Reuters provides mutual and hedge fund information, analytical tools, data and commentary. Lipper's benchmarking provides a guidepost to asset managers, fund companies, financial intermediaries, traditional media, websites, and individual investors. Lipper covers 150,000 share classes and more than 80,000 mutual funds located in 56 domiciles. Currently, Michael Peace serves as Lipper's Chief Executive Officer and Global Head of Reuters Research & Asset Management.
[edit] Corporate History
Michael Lipper founded Lipper Analytical Services in 1973 to provide precise data and analytical perspective to mutual fund and hedge fund companies in the United States. In 1998, Lipper joined forces with Reuters Group PLC, as a wholly owned subsidiary. Following the acquisition, it made a series of global acquisitions that have been combined with Lipper. These acquisitions now operate under the Lipper brand globally and include:
• 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 also provides retirement plan analysis and reporting tools for financial advisors and retirement platform providers.
[edit] Fund ratings and Indices
Lipper Leaders Rating System
The Lipper Leaders Rating System is a mutual fund rating system that uses investor-centered criteria, such as capital preservation, expense and consistent return.
As of 7 November 2007, 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, Lipper Optimal Indices, Lipper Premium Indices, Lipper Active Indices
[edit] 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 monthly and quarterly hedge fund research reports, including TASS Asset Flows Report and Lipper Hedge Fund Insight Report.
