Performance & Backtesting Policy

This policy applies to every page and publication that shows:

• model returns
• simulation portfolios
• historical alpha
• backtests
• portfolio comparisons
• return forecasts
• options scenario payoffs

Every performance output should be classified as one of:

• actual/live
• audited actual
• hypothetical
• simulated
• backtested
• paper
• forecast/expected

Different classifications must not be merged into one apparent historical-performance series without clear disclosure.

Backtests are hypothetical unless explicitly identified otherwise. Where relevant, a backtest should disclose its assumptions, including:

• starting universe
• delisting treatment
• survivorship controls
• data availability
• point-in-time treatment
• rebalance date
• transaction costs
• slippage
• liquidity assumptions
• taxes
• dividends
• corporate actions
• execution assumptions
• leverage
• shorting costs
• options pricing assumptions

Expected returns, target prices and probability-weighted outcomes must be described as estimates, not as realised performance.

Historical model or simulation results must not be labelled in a manner that suggests they are returns actually earned by clients or by MCH, unless that is demonstrably true.

Every performance chart should carry a concise classification label near the chart, not only in a distant footer. Examples:

• BACKTEST — hypothetical, not actual investment performance
• SIMULATED PORTFOLIO — transaction costs and other assumptions apply

The nature of MCH Publications research and the risks of relying on it are described in the Investment Research & Regulatory Disclaimer. Corrections to published performance information are handled under the Research Corrections & Amendments Policy.

Questions about a performance output or its classification may be sent to research@mchadvisoryservices.com.