Lipper
| Company type | Subsidiary |
|---|---|
| Industry | Financial services |
| Founded | 1973 |
| Founder | A. Michael Lipper |
| Headquarters | New York City , United States |
Area served | Americas, Europe, Asia, Middle East |
| Parent | Thomson Reuters |
| Website | www |
Thomson Reuters Lipper is a U.S.-based financial services company and a subsidiary of Thomson Reuters. Established in 1973 by securities analyst A. Michael Lipper under the name Lipper Analytical Services, it was later purchased by Reuters in 1998.
Corporate history
Originally, Lipper Analytical Services focused on delivering data and analytical insights to mutual fund companies within the United States. The company grew both organically and through strategic acquisitions before being acquired by Reuters Group PLC in 1998. Following the merger between Thomson Financial and Reuters in April 2008, Lipper became integrated into Thomson Reuters. In May 2015, the Lipper Fiduciary Services division along with its competitive segment, Lipper FMI, were divested to Broadridge Financial Solutions.
Significant acquisitions made under the Lipper brand encompass:
- Hardwick Stafford Wright Limited (HSW) – provider of fund performance data in the UK
- BOPP ISB AG – Swiss-based firm specializing in fund performance and analytics
- CAMRA – supplier of portfolio information for funds
- BT Alex Brown Investment Trusts – Bankers Trust International Plc’s data division
- Fitzrovia International – research firm focusing on UK fund fees and expenses
- HedgeWorld – global news and analysis platform for hedge funds
- TASS Research – database tracking hedge fund performance
- FERI Fund Market Information Ltd – specialist in European fund market research
- AMG Data Services – provider of U.S. mutual fund flow data
- Globe and Mail Mutual Fund Database – tool for monitoring Canadian mutual fund performance
Lipper delivers retirement plan analytics, reporting solutions tailored for financial advisors, and investment research through its offices located throughout the Americas, Europe, Asia, and the Middle East.
Fund ratings and indices
Lipper Leaders Rating System
The Lipper Leaders Rating System assesses mutual funds based on criteria important to investors such as capital preservation, cost efficiency, and consistent returns. Funds are rated monthly on a scale from 1 (lowest) to 5 (highest), where the top quintile (top 20%) within each peer group earns the designation of Lipper Leaders.
This rating process involves comparing funds within similar categories using metrics like Total Return or Expense Ratio. Funds are segmented into five equal groups: the leading 20% receive a rating of 5, followed by subsequent quintiles receiving ratings down to 1. Although these ratings do not forecast future performance, they provide useful insights for investment evaluation.
Ratings are available for three-, five-, ten-year periods as well as an overall score calculated by averaging percentile rankings equally across these intervals.
The metrics used in Lipper Ratings include Total Return, Consistent Return, Preservation, Tax Efficiency (applicable only in the US), and Expense.
Lipper Indices
Lipper Indices function as benchmarks designed to monitor and analyze fund performance. Offering more than 160 indices covering open-end funds, closed-end funds, and variable annuities, some indices feature data tracing back to the early 1960s.
Prominent indices include Lipper Sector Indices, Thomson Reuters Lipper Optimal Indices, Thomson Reuters Lipper Premium Indices, and Lipper Active Indices.
Lipper Fund Awards
In 1998, the Lipper Fund Awards became part of Reuters Group following its acquisition of Lipper Analytical. When Thomson Financial merged with Reuters in 2008, Lipper was integrated into Thomson Reuters. After more than 30 years of recognizing excellence in mutual funds, the Lipper Fund Awards were transferred to Refinitiv in 2018 as a result of Reuters' sale to the Blackstone Group.
Research report series
Lipper produces a variety of fund research publications on a monthly, quarterly, and annual basis. These include reports such as Fund Market Insight, Fund Flows Insight, and Fund Industry Insight. Additionally, Lipper provides specialized fiduciary and hedge fund research analyses.