Lipper Leader Rating System

The rating system

An Overview

Lipper Leader ratings are derived from highly sophisticated formulas that analyze funds against clearly defined criteria. Funds are compared to similar funds, and only those that truly stand out are awarded Lipper Leader status.

Funds are ranked against their peers on each of four measures: Total Return , Consistent Return, Preservation , and Expense . A fifth measure, Tax Efficiency , applies in the United States. Scores are subject to change every month and are calculated for the following periods: 3-year, 5-year, 10-year, and overall. The overall calculation is based on an equal-weighted average of percentile ranks for each measure over 3-year, 5-year, and 10-year periods (if applicable).

For each measure, 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.