Lipper Leaders Rating System


A Lipper Leader for Preservation is a fund that has demonstrated a superior ability to preserve capital in a variety of markets when compared with other funds in its asset class, which may be equity, mixed equity, or fixed-income funds.

Choosing a Lipper Leader for Preservation may help to minimize downside risk relative to other fund choices in the same asset class. Investors are cautioned that equity funds have historically been more volatile than mixed-equity or fixed-income funds, and that even Lipper Leaders for Preservation in more volatile asset classes may not be well suited to shorter-term goals or less risk-tolerant investors.

How we score Lipper Leaders for Preservation
Lipper Leader ratings for Preservation reflect funds' historical loss avoidance relative to other funds within the same asset class. Scores for Preservation are computed from three broad asset classes -- equity funds, mixed-equity funds, and fixed-income (bond) funds.

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 Preservation 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 Preservation. 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.