Back-tested Performance Data [Investment] Law and Legal Definition

Back-tested performance data refers to hypothetical performance data created by applying a particular investment strategy to historical data over a period of time. The data may be created using quantitative methods or formulas. Back-tested performance data is also used to refer to hypothetical performance constructed from the historical performance of existing funds. Back-tested results aim to show investment returns that theoretically would have been achieved if the strategy had been used during a past time period.