Skip to main content
All CollectionsInvestmentGeneral Questions
Disclosures for handling historical portfolio testing data
Disclosures for handling historical portfolio testing data

Important information regarding the mechanisms of historical backtests conducted to measure portfolios' performance

Faisal Alqarni avatar
Written by Faisal Alqarni
Updated over a month ago

What are the historical portfolio simulation tests?

The backtests of the historical data of the portfolios simulate the portfolio and trading strategy and are based on data from indicators or various types of securities, whether stocks or funds, and we rely on them to measure the performance of our portfolios and various investment strategies to test them before activating and adopting them (such as measuring the average expected return for the coming years) or to measure the historical performance of the portfolios (such as the reports that we share quarterly).

Some key points

  • Past performance is not an indicator of the future performance of the portfolio and the future performance of the portfolios cannot be accurately predicted

  • We use the prices of stocks and exchange-traded funds (whether indices or otherwise) at the closing, which are always adjusted to take into account any stock distributions or stock splits

Dividends and distributions

  • It is taken into account that the reports and the performance of the portfolios assume the reinvestment of distributions and the impact of the investment cost when investing the distributions on the total return of the portfolio to simulate the actual return as much as possible.

  • Performance reports do not include any fees, whether they are solvency fees, fund managers fees, government fees for legislators, or value added tax

Did this answer your question?