Important Disclosures & Disclaimers
iQUANT.pro (and all of its content) is intended only for INVESTMENT PROFESSIONAL USE and is not intended for retail investors.
HYPOTHETICAL PERFORMANCE
HISTORICAL MODEL PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE RETURNS PRESENTED REPRESENT SIMULATED MODEL RETURNS WHICH ARE HYPOTHETICAL, MEANING THEY DO NOT REPRESENT ACTUAL TRADING, AND, THUS, MAY NOT REFLECT MATERIAL ECONOMIC AND MARKET FACTORS, SUCH AS LIQUIDITY CONSTRAINTS, THAT MAY HAVE HAD AN IMPACT ON ACTUAL DECISION MAKING. THE HYPOTHETICAL PERFORMANCE REFLECTS THE RETROACTIVE APPLICATION OF THE MODEL WITH THE FULL BENEFIT OF HINDSIGHT.
Actual performance may result in lower or higher returns than the hypothetical Model performance presented. If actual portfolios had been managed, there can be no guarantee such portfolios would have achieved results similar to those portrayed.
Model returns reflect a 0.50% annual trading expense on total portfolio value – which may be higher or lower than actual trading costs. Actual performance will vary from that of investing in the Model because it may not be fully invested at all times. Hypothetical model returns in certain years were significantly higher than the returns of the S&P 500 Index. It is important to note that models may underperform in certain years and may produce negative results. Investments in models should be made with an understanding of the risks involved with owning common stocks, such as an economic recession and the possible deterioration of either the financial condition of the issuers of the equity securities or the general condition of the stock market. The value of the securities selected by the Model may be subject to steep declines or increased volatility or perception of the issuers.
There are limitations and restrictions with backtested performance, including the fact that it is hypothetical and does not represent actual trading results. Backtested performance does not account for the impact of market conditions, such as transaction costs, slippage, and market volatility, that could have affected actual performance. Backtested performance is based on historical data and should not be considered indicative of future performance.
POTENTIAL LIMITATIONS OF BACKTESTING
There are three types of biases that can distort a strategy backtested result: Look Ahead bias - this occurs when the stocks selected on a rank date use financial information that was not available on that rank date. For example, if a company reports its financials for the quarter ending Mar 2006 on Apr 20, 2006, the rank that is created at the end of the March 2006 quarter should not use the financials for that quarter, since they were not available at the end of the quarter. We have eliminated to the best of our ability all the look ahead bias from back testing. Restatement bias - this occurs when a company restates its historical financials. For example, if a company reports its 3/06 results and restates its Dec 2005 results; a rank done as of end of Dec 2005 should use the originally reported financials for Dec 2005, not the restated financials for Dec 2005 which were not available until March 2003. We have eliminated to the best of our ability all the restatement bias from back testing. Survivor bias - this occurs when stocks that have been delisted or acquired are not included in the backtest results. Depending on your strategy, the impact of survivor bias on your backtest may be significant. We have eliminated to the best of our ability the survivorship bias from our models.
INVESTMENT RISKS
Equity Risk. An investment in a Model containing common stocks is subject to certain risks, such as an economic recession and the possible deterioration of either the financial condition of the issuers of the equity securities or the general condition of the stock market. Sector Concentration Risk. A Model which is concentrated in an individual sector is subject to additional risks, including limited diversification. Foreign Securities Risk. An investment in securities of foreign issuers should be made with an understanding of the additional risks involved, such as political risk, withholding, the lack of adequate financial information, and exchange control restrictions impacting foreign issuers. Small-Cap and Mid-Cap Risk. An investment in a Model containing small-cap and mid-cap companies is subject to additional risks, as the share prices of small-cap companies and certain mid-cap companies are often more volatile than those of larger companies due to several factors, including limited trading volumes, products, financial resources, management inexperience and less publicly available information. Volatility Risk. The value of the securities held by the trust may be subject to steep declines or increased volatility due to changes in performance or perception of the issuers. Commodity Related Risk. The exposure to the commodities markets may subject an investment to greater volatility than investments in traditional securities due to changes in interest rates, or sectors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. Credit Risk. There is a risk that issuers and counterparties will not make payments on securities and other investments selected by any model, resulting in losses. ETF Risk. When the model selects an investment company, including an ETF, it will indirectly bear its proportionate share of any fees and expenses payable directly by the other investment company. Therefore, the model will incur higher expenses. In addition, a model may be affected by losses of the underlying funds and the level of risk arising from the investment practices of the underlying funds (such as the use of leverage by the funds). A model has no control over the investments and related risks taken by the underlying funds it selects. Additionally, investments in ETFs are also subject to the following risks: (i) the market price of an ETF’s shares may trade above or below their net asset value; (ii) an active trading market for an ETF’s shares may not develop or be maintained; or (iii) trading of an ETF’s shares may be halted for a number of reasons. Fixed Income Risk. When a model selects fixed income securities, or Acquired Funds that own bonds, the value of your investment will fluctuate with changes in interest rates. Other risk factors include credit risk (the debtor may default) and prepayment risk (the debtor may pay its obligation early, reducing the amount of interest payments). High-Yield Risk. High-yield, high-risk securities, commonly called “junk bonds,” are considered speculative. While generally providing greater income than investments in higher-quality securities, these lower-quality securities will involve greater risk of principal and income that higher-quality securities. Interest Rate Risk. Interest rate risk is the risk that bond prices overall, including the prices of securities held by the Fund, will decline over short or even long periods of time due to rising interest rates. Bonds with longer maturities tend to be more sensitive to interest rates than bonds with shorter maturities. Recently, interest rates have been historically low. Current conditions may result in a rise in interest rates. As a result, for the present, interest rate risk may be heightened. Inverse ETF Risk. Inverse or “short” ETFs seek to deliver returns that are opposite of the return of a benchmark (e.g., if the benchmark goes up by 1%, the ETF will go down by 1%), typically using a combination of derivative strategies. Inverse ETFs contain all of the risks that regular ETFs present. Because inverse ETFs typically seek to obtain their objective on a daily basis, holding inverse ETFs for longer than a day may produce unexpected results particularly when the benchmark index experiences large ups and downs. Unexpected results include an Inverse ETF failing to rise in price despite a drop in the reference index. Inverse ETFs may also be leveraged. Inverse ETFs contain all of the risks that regular ETFs present. Leveraged ETF Risk. Investing in leveraged ETFs will amplify gains and losses. Most leveraged ETFs “reset” daily. Due to the effect of compounding, their performance over longer periods of time can differ significantly from the performance of their underlying index or benchmark during the same period of time. Preferred Stock Risk. The value of preferred stocks will fluctuate with changes in interest rates. Typically, a rise in interest rates causes a decline in the value of preferred stock. Preferred stocks are also subject to credit risk, which is the possibility that an issuer of preferred stock will fail to make its dividend payments. Real Estate Risk. Models selecting REITs are subject to the risks of the real estate market as a whole, such as taxation, regulations and economic and political factors that negatively impact the real estate market and the direct ownership of real estate. Tracking Risk. Investments in Exchange Traded Funds will not be able to replicate exactly the performance of the indices or sector they track because the total return generated by the securities will be reduced by transaction costs incurred in adjusting the actual balance of the securities. Turnover Risk. Because a model will reconstitute on an at least quarterly basis, a model may have portfolio turnover rates significantly in excess of 100%. Increased portfolio turnover may incur higher brokerage costs, which may adversely affect the performance and may produce increased taxable distributions.
LIMITATION ON iQUANT.pro LIABILITY
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DISCLAIMER OF WARRANTY
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INTELLECTUAL PROPERTY
iQUANT.pro ("the Company") is committed to protecting its intellectual property rights, including proprietary investment models and related materials. This disclosure outlines the intellectual property policies and restrictions associated with using our investment models:
Ownership and Confidentiality: The Company retains ownership of all intellectual property rights of our investment models, algorithms, software, and materials. These materials are confidential and may not be reproduced, distributed, or disclosed without explicit permission from the Company.
Limited License: The Company grants limited, non-exclusive, non-transferable access to and use of our investment models and related materials to investment professionals. Our materials may not be resold or sublicensed under this access.
Prohibited Activities: Users of our investment models and services are strictly prohibited from reverse engineering, decompiling, modifying, or creating derivative works based on our proprietary materials. Any unauthorized use, reproduction, or distribution of our intellectual property may result in legal action to protect our rights.
Trademarks and Branding: All trademarks, service marks, logos, and trade names associated with iQUANT are the exclusive property of the Company. Unauthorized use of our trademarks or branding is strictly prohibited and may violate applicable laws.
Disclaimer of Warranties: The Company makes no warranties or representations regarding the accuracy, reliability, or completeness of our investment models and related materials. Users assume all risks associated with their use and acknowledge that the Company shall not be liable for any damages or losses arising from their reliance on such materials.
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BROKERS, INVESTMENT ADVICE & PORTFOLIO MANAGEMENT
iQUANT.pro is an Internet based publication (the “Site”) and is not affiliated with an investment advisor or Broker/Dealer. Neither iQUANT.pro nor the Site is registered as an investment adviser with any federal or state regulatory agency, or in any other regulatory capacity. To the extent that any portion of the Site content would need to rely upon such an exemption, iQUANT.pro would rely upon the “publisher’s exclusion” from the definition of “investment adviser” as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. To the extent reliance on the publisher’s exemption is necessary, the Site is a bona fide publication of general and regular circulation offering impersonalized investment models to users and/or prospective users (e.g., not tailored to the specific investment portfolio or needs of current and/or prospective users).
The Site is limited to the dissemination of impersonal and objective investment-related information. The publication of the Site on the Internet and the publication of any content should not be construed by any user and/or prospective user as iQUANT.pro’s (i) solicitation to effect, or attempt to effect transactions in securities over the Internet, or (ii) provision of any investment related advice or services tailored to any particular individual’s financial situation or investment objective(s).
Users do not receive investment advisory, investment supervisory or investment management services, nor the initial or ongoing review or monitoring of the user’s individual investment portfolio or individual needs. Therefore, no user should assume that his/her/its use serves as a substitute for individual personalized advice from an investment professional of the user’s choosing. Rather, the Site is designed solely to provide impersonal investment models and systems.
The user maintains absolute discretion as to whether to follow any portion of the Site content. iQUANT.pro does not offer or provide investment implementation services, nor does it offer or provide initial or ongoing individual personalized advice (neither in person nor via the Internet). It remains the user’s exclusive responsibility to review and evaluate the content and to determine whether to accept or reject any Site content. iQUANT.pro expresses no opinion as to whether any of the Site content is appropriate for a user’s investment portfolio, strategy, financial situation, or investment objective(s).
It is the user’s exclusive responsibility to determine if any portion of the investment-related information and trading methodologies/systems. on the Site, if any, is suitable or appropriate for his/her financial situation and/or investment objectives, both initially and on an ongoing basis. No current or prospective user should assume that the future performance of any specific investment, investment strategy (including the investments trading methodologies/systems discussed on the Site) or any other Site content will be suitable or profitable for a user’s portfolio, equal historical or anticipated performance level(s), or prove to be correct.
Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a user or prospective user’s investment portfolio. Users do not receive investment advisory, investment supervisory or investment management services, nor the initial or ongoing review or monitoring of the user’s individual investment portfolio or individual needs. Therefore, no user should assume that his/her/its use serves as a substitute for individual personalized advice from an investment professional of the user’s choosing.
REPRESENTATIONS & WARRANTIES
iQUANT provides investment models for informational and educational purposes. While we strive to ensure the accuracy and reliability of our content, it is important to understand the following representations and warranties:
No Guarantee of Accuracy: The Company makes no representations or warranties regarding the accuracy, completeness, or timeliness of the information, data, or analyses provided. Although we employ diligent efforts to provide reliable information, market conditions and other factors can impact the validity of our strategies and models.
General Nature of Information: The information and materials provided by the Company are intended for general informational purposes only and should not be considered as personalized investment advice or recommendations. Each investor's financial situation, risk tolerance, and investment objectives are unique, and it is crucial to consult with a qualified financial advisor before making any investment decisions. Unless expressly stated, any links to other websites are provided for your convenience and are not intended to imply that iQUANT.pro endorses, sponsors, promotes, or is affiliated with the owners or participants in those sites, or endorses or warrants any information contained on those sites. Furthermore, iQUANT.pro does not endorse, guarantee, or warranty any third-party products advertised on its website, in its newsletters, in any third-party rental of its permission-based lists, or in any other information provided by iQUANT.pro or derived from iQUANT.pro's website, and iQUANT.pro expressly disclaims any responsibility and accepts no liability with respect to such information and products.
No Endorsement or Warranty of Performance: The Company does not endorse or warranty the performance, profitability, or outcomes of any specific investment strategy or model. Past performance is not indicative of future results, and there is no assurance that any investment strategy or model will achieve desired or anticipated outcomes.
Limitation of Liability: The Company and its affiliates, directors, officers, employees, agents, and representatives shall not be held liable for any damages, losses, or expenses arising from the use of our strategies, models, or information, regardless of the cause, including but not limited to errors, omissions, delays, or inaccuracies.
Compliance with Legal and Regulatory Requirements: iQUANT is not affiliated with FINRA and this disclosure is intended to be general in nature. It is recommended that you consult with a Compliance professional who can provide tailored advice to your specific situation.
Our employees (and affiliates) may hold positions in and/or trade the securities mentioned in the information. We receive no remuneration for publishing information about companies chosen by our models.
It is recommended that users of our investment strategies and models carefully review all available information, including disclosures, prospectuses, or offering documents. By utilizing our services, you acknowledge and accept the above representations and warranties, recognizing that investment decisions carry inherent risks and should be made in consideration of individual circumstances and professional advice.