Lipper Indexes

Lipper Indexes

Lipper indices are indices that track the financial performance of different types of managed fund strategies. Each index is based on the performance of the largest listed funds of the strategic group.

Breakdown of Lipper indices

The Lipper indices are constructed and managed by Lipper, which is owned by Reuters. Lipper maintains indices for almost all types of mutual fund strategies in the investable market. Public disclosure of the Lipper Index performance is provided by the Wall Street Journal and here by Barron’s.

To construct each index, Lipper averages the returns of funds on the investable market that are managed according to the strategy of the index. The funds used to calculate the index return are chosen by the assets under management. The number of funds used by Lipper to obtain the performance of the Lipper index varies widely. Most Lipper indices use approximately 30 to 100 funds to obtain the performance of the index.

Lipper indexes are often included in mutual fund performance reports. Investment managers can use Lipper and Lipper Index data in reports for their clients. A Lipper index can also be used as the main benchmark of a mutual fund.

Analysis of the Lipper index

Lipper indices can help give retail investors insight into the best-performing strategies as well as the performance of various strategies across different periods of the market. Through this web page, Lipper provides investors with information on the best and worst performing indices in all market categories.

The returns of the Lipper index over one year until January 5, 2020 show that the Lipper China Reg Fund index is the best-performing strategy in the global equity category. This strategy shows a return on a year of 54.30%. Meanwhile, the worst performing global equity strategy for the past year has been the Lipper Short Bias Index, which represents the performance of out-of-stock funds. The Lipper Short Bias index has a year-on-year return of -27.50%.

On the bond market, the Lipper Emerging Markets Local Debt Fund index is the best performing strategy with a year-on-year return of 18.20%. The worst performing strategy in the bond market over the past year has been the Lipper Alternative Currency Strategy Fund Index. This strategy has a year-on-year return of -1%.

In the money market category, the returns of the Lipper index varied from 1.02% to 0.30% over the period of one year until January 5, 2020. The best-performing index was the Lipper index Institutional Money Market with a yield of 1.02%. The worst-performing fund in the category was the Lipper New York tax-exempt money market index, which returned 0.30%.

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