Lipper announced Tuesday that it has devised a method of rating target-date funds, which are hard to assess as a group since their asset allocations and glidepaths vary so widely and they themselves are structured as funds-of-funds, Reuters reports.

To address this challenge, Lipper has created peer groups of target-date funds with similar performance to compare on a quarterly basis. Lipper likens this to the Bradley-Terry model of comparing tennis players.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.