Lipper Index Service

Calculation Methodology

All Lipper index values are calculated utilizing a weighted aggregative composite index formula methodology. This formula does not permit the propagation of errors through the time series. This methodology reduces the upward bias caused by the daily linked methodology. In addition, the replication of the index's performance may occur in the marketplace.
The following outlines this methodology. If you have questions or would like additional information, please contact Lipper Client Services.

Index value

The index methodology uses a weighted aggregative composite index formula rebased quarterly.

Selection of funds

The selection of funds is based on year-end total net asset size. Selected funds are instituted at the March rebasing.

Failure to meet established criteria

Funds that fail to meet established criteria are now removed from the index on the day of component failure and replaced quarterly.

Index performance measurement

Index performance is measured as the percentage change between the daily value and the index value at the date of the quarterly rebasing.

Weighting index components

Currently, all components are equally weighted at the quarterly rebasing.

Calculations

The base date market value and current date market value (divisor) are calculated by aggregating the price times the quantity of each constituent fund's shares. The current date market value (numerator) is calculated by multiplying each component's number of shares at the rebase date by its current-day closing price. The numerator is divided by the divisor, and the result is the percentage change in the portfolio from the base date. The result is then applied to the index value at the base date to obtain the current day's index value.

Contact Info

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