Lipper Leaders Rating System

Total Return

A Lipper Leader for Total Return is a fund that has provided superior total returns when compared to a group of similar funds.

Lipper Leaders for Total Return may be the best fit for investors who want the best historical return, without looking at risk. This measure alone may not be suitable for investors who want to avoid downside risk. For more risk-averse investors, Total Return ratings can be used with Preservation and/or Consistent Return ratings to make an appropriate selection that balances the risk and return.

How we rate Lipper Leaders for Total Return

Lipper Leader ratings for Total Return reflect funds' historical total return performance relative to peers. Ratings for Total Return are computed for all Lipper classifications with five or more distinct portfolios and span both equity and fixed-income funds (e.g., large-cap core, general U.S. Treasury, etc.).

The ratings are subject to change every month and are calculated for the following time periods: 3- year, 5-year, 10-year, and overall. The overall calculation is based on an equal-weighted average of percentile ranks for the Total Return metrics over 3-year, 5-year, and 10-year periods (if applicable). The highest 20% of funds in each classification are named Lipper Leaders for Total Return. 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.