As you read through the pages on this site, there are two important
disclosure/disclaimers of which you should be aware. One is about the
hypothetical nature of the investment performance shown, and the other
is basic information about doing business with an investment advisor.
HISTORICAL PERFORMANCE: HYPOTHETICAL NATURE
The simple nature of the risk reduction models employed to
generate the returns shown on this site should enable them
to be effective portfolio management tools in the future. Moreover, the
testing on historical data covers a large number of years and wide range
of market conditions, both in secular bull and secular bear markets. The
strong performance of the simple models over a long time and wide range
of market conditions indicates that these models are quite likely to
continue to be useful risk reduction tools.
However, it is important to note that the investment returns shown elsewhere
on the site are hypothetical. There are significant differences between
hypothetical returns and returns from actual investments. In particular:
- Hypothetical and backtested results do not result from actual trading using client assets.
Although index mutual funds are the most likely investment vehicles and given their size it takes
very large amounts of inflows or outflows to affect the broad markets, it is possible that MDP
Associates trading of actual client accounts could have significantly affected the transaction prices.
- The results shown may be from retroactive application of a model that was designed with the benefit of hindsight.
(Since the models were not designed by MDP Associates, the extent to which this is true
- Hypothetical performance information may not reflect the impact that any material market or
economic factors might have had on MDP Associates' use of the investment methods if the methods had been
used during the backtesting period in the actual management of client accounts
Perhaps the most important disclosure is the universal: past performance is no
guarantee of future results. You should not assume that any of the returns shown here will be obtained in the
future. It is possible that the methods and managed account clients will lose money.
IMPORTANT CONSUMER INFORMATION
MDP Associates is a Registered Investment Advisor (RIA). Before you contact
any RIA firm, you should know the following:
- An investment advisor (IA) or IA representative (IAR) may only
transact business in a particular state after licensure or satisfying
qualifications requirements of that state, or only if they are excluded
or exempted from the state's IA or IAR requirements, as the case may be; and
- Follow-up, individualized responses to consumers in a particular state by
IA or IAR that involve either the effecting or attempting to effect transactions
in securities or the rendering of personalized investment advice for compensation,
as the case may be, shall not be made without first complying with the state's
IA or IAR requirements, or pursuant to an applicable state or federal exemption or exclusion.
- For information concerning the licensure status or disciplinary history of an
IA or IAR, a consumer should contact his or her state securities law administrator.
MDP Associates is licensed in Virginia, its home state, and some other states.
(Legislation passed by Congress in 1997 precludes registration with the SEC because of
the amount of assets currently under management.) MDP Associates is eligible to have clients
in any state due to either being licensed by the state or being exempted under state or federal
laws. New clients are currently being accepted from all states and DC.
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