A new method of evaluating mutual funds for individual investors has recently been launched by one of the world’s leading fund-tracking firms. Lipper Inc. will bring their new expertise to Colorado State University in an effort to help individuals learn how to invest wisely in a highly volatile market.
Senior analysts from Lipper, experts in mutual fund evaluation, will begin their presentation at 7 p.m. Nov. 13 in Room A207 Clark Building on the Colorado State campus.
Following several years of intensive research, the company recently launched a new system for rating funds called "Lipper Leaders." The system will help individual investors and their advisers select funds that fit their own investment goals, such as consistent return or preservation of capital.
"We wanted to create a system that was more investor-centered than existing rating systems that try to be one-size-fits-all," said Robin Thurston, director of research. "We wanted investors and their advisers to have a tool kit that would give them the ability to narrow down a wide range of options to select a group of funds that focused on their overall investment goals."
The new system measures funds against their competitors in the same investment-objective peer group. The top 20 percent in each of the categories are designated as a "Lipper Leader." The formulas for determining which funds get the designation will result in relatively infrequent additions and deletions to a monthly list that will be updated monthly on the Internet. The information will be free to individual investors and will also be published in major financial publications.
Lipper created the new method for analyzing funds as a "suite of tools" which will expand over the next year. Their research and development team also is working on a system of measurement for tax efficiency and expenses.
The presentation is free and open to the public. Refreshments will be served at 6:30 p.m. and the presentation will begin at 7 p.m. Participants also will have time to personally meet with Lipper’s senior analysts.
The American Association of Individual Investors, the Center for Investment and Real Estate Finance in the College of Business and the Finance Club at Colorado State are sponsoring the presentation.
Reservations are required due to the popular nature of the topic. For more information, contact Elaine Worzala at (970)491-6337 or register by e-mail at AAII_FortCollins@hotmail.com.