Lipper of Summit, N.J. has announced changes in its fund classification model. The company will modify the model for open-end domestic equity funds as well as extend its portfolio-based classification model to include closed-end funds and variable insurance products, according to the company.
Lipper will implement the changes to the classification model for open-end domestic funds beginning March 19. One of the most significant changes will be that Lipper will begin measuring funds against the relevant S&P index (large cap funds vs. S&P 500 Index, etc.) instead of against the other funds in that capitalization group, according to the company. That should give managers and investors a better standard to evaluate individual funds, according to a spokesperson for Lipper.