Lipper Leaders Rating System

Expense

A Lipper Leader for Expense is a fund that has successfully managed to keep its expenses low relative to its peers and within its load structure.

Lipper Leaders for Expense may be the best fit for investors who want to minimize their total costs. It can be used in conjunction with Total Return or Consistent Return to identify funds with above-average performance and lower-than-average cost.

How we score Lipper Leaders for Expense
Lipper Leader ratings for Expense reflect funds' expense minimization relative to peers with similar load structures. Ratings for Expense are computed for all Lipper classifications with five or more distinct portfolios and span both equity and fixed-income funds (e.g., large-cap core, general U.S. Treasury, etc.).

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 Expense 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 Expense. 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.