Legal
Performance presentation methodology
Draft — not yet in force — requires legal and compliance approval
This document is a placeholder drafted for internal review. It is not legal advice, is not final, and does not yet govern any relationship with Quantari. Final policies will be published before any service becomes available.
Purpose and status
This document is a framework draft prepared for internal review. It describes the methodology Quantari would intend to follow if it ever presented performance information. It is not final, is not in force, and requires legal and compliance approval. Quantari publishes no performance figures and claims no verified track record; nothing here represents actual results.
Actual versus hypothetical performance
Quantari intends to distinguish clearly between actual performance achieved for real portfolios and any hypothetical, simulated or historically-simulated results. Hypothetical results have inherent limitations, do not reflect actual trading, and would never be presented as, or conflated with, an actual track record.
Gross versus net of fees
Where performance were presented, Quantari intends to make clear whether figures are shown before (gross) or after (net) fees and costs, and to present net figures where appropriate, so that the effect of charges on returns is transparent.
Benchmarks
Any comparison to a benchmark would use a benchmark identified and explained as relevant, on a consistent basis, and clearly labelled. No benchmark has been selected. A benchmark comparison would never be used to imply outperformance that has not occurred. [Benchmark: to be confirmed.]
Risk metrics: volatility and drawdown
Where risk-adjusted or risk-related measures such as volatility or maximum drawdown were presented, Quantari intends to define each measure, state the period and method used, and present them alongside return figures so that risk is not omitted.
Time-weighted and money-weighted returns
Quantari intends to state which return methodology is used — for example time-weighted returns, which remove the effect of external cash flows, or money-weighted returns, which reflect the timing and size of cash flows — and to apply it consistently and explain the difference.
Cash flows, transaction costs, FX and taxes
Any performance methodology would need to specify how external cash flows, transaction costs, foreign-exchange effects and taxes are treated, because each affects reported returns. Quantari intends to state its treatment of each and to apply it consistently.
Survivorship and look-ahead bias
Quantari intends to guard against biases that can overstate results, including survivorship bias (excluding discontinued portfolios or instruments) and look-ahead bias (using information that would not have been available at the time), and to disclose the steps taken.
Model and methodology changes
Changes to models, or to the performance methodology itself, can affect comparability over time. Quantari intends to document such changes and their effect, and to avoid presenting results in a way that obscures them.
Data sources
Any performance figures would depend on data whose sources, accuracy and completeness affect the result. Quantari intends to identify the data sources used and to apply them consistently. No such sources are fixed today. [Data sources: to be confirmed.]
Composite construction
If results were presented for a group of similar portfolios as a composite, Quantari intends to define how portfolios are included in or excluded from the composite, on a consistent and documented basis, so that the composite is representative and not selectively assembled.
Record retention and missing inputs
Quantari intends to retain the records supporting any presented performance for an appropriate period. The methodology cannot be finalised until, among other things, the service model, benchmark, data sources and fee model exist. Each is marked to be confirmed, and no figure or track record may be presented in the meantime. [Inputs: pending.]
Status: draft placeholder. Last updated: not yet published.