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Cabana

October 2019

The Target Drawdown 10 is the original of the seven portfolios in Cabana's Target Drawdown Series. All other Target Drawdown Portfolios are a variation of the Target Drawdown 10 and have been constructed by adjusting the drawdown parameters to the desired volatility range. The objective of the portfolio is to seek a limited volatility range (“target drawdown”) of ten percent (10%) from peak to trough. The asset allocation is primarily distributed among major asset classes with a sensitivity to market downturn. This portfolio may contain inversely and non-correlated assets throughout the economic cycle. Additional stability is sought through the accumulation of bond interest and equity dividends. All Cabana portfolios are considered Core All Asset Tactical and provide viable options for most long-term investors. Prior to December 2018, this portfolio was known as Cabana’s Moderate Core Tactical Portfolio. It is rated five stars overall by Morningstar, Inc.

Quick Facts
  • Portfolio Manager: G. Chadd Mason
  • Minimum Investment: $25,000
  • Target Drawdown: 10%
  • Inception Date: January 1, 2012
Drawdown Statistics
  • Max Drawdown -9.53%
  • Max Drawdown # of Periods 11
  • Max Drawdown Peak Date 02/2018
  • Max Drawdown Valley Date 12/2018
Standard Deviation
  • Std Dev 1 Yr (Mo-End) 10.14%
  • Std Dev 3 Yr (Mo-End) 8.80%
  • Std Dev 5 Yr (Mo-End) 8.97%

The Target Drawdown 10 is rated five stars overall by Morningstar, Inc.
ID: F000010FNU

GIPS Performance

Cabana claims compliance with the Global Investment Performance Standards (GIPS®).

The Target Drawdown 10 has been performance examined consistent with GIPS® standards.

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What is Target Drawdown?

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Cabana numerically quantifies acceptable levels of risk by identifying a “target drawdown” percentage for each portfolio at the onset of the investment process.

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Drawdown is defined as the maximum loss, or amount an investment can be expected to fall, from peak to trough during adverse market conditions.

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Monthly returns are used to calculate the drawdown percentage. This method of measurement creates a new "high-water mark" each time the portfolio’s value increases, which means drawdown is determined from a portfolio’s highest value, not from an investor’s starting balance.

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All portfolios in the Target Drawdown Series are constructed with the primary goal of avoiding and minimizing losses where possible - especially losses that exceed a portfolio’s target drawdown parameter. This investment philosophy allows clients to remain fully invested at all times, set expectations for loss, and actively participate in favorable market conditions.

Monthly Performance 2019

Annual Returns

Trailing Returns

Asset Allocation

Please refer to Page 2 for important disclaimers.

Growth of $1,000

Drawdown

Risk Statistics

Since inception

The Model Portfolio

All portfolios in the Target Drawdown Series are derived from Cabana’s 2001-2011 Model Portfolio hypothetical backtest. The Model Portfolio tested the combination of the Nobel Prize winning concept of Modern Portfolio Theory and Cabana’s Cyclical Asset Reallocation Algorithm (“CARA”). The Model was formally implemented as the Target Drawdown 10 on January 1, 2012.

View the hypothetical backtested performance

Target Drawdown 10 Disclaimer

Cabana LLC, dba Cabana Asset Management (“Cabana”), is an SEC registered investment adviser. Cabana only transacts business in states where it is properly registered or is exempted from registration requirements. Registration as an investment adviser is not an endorsement of Cabana by securities regulators and does not mean that such investment adviser has achieved a specific level of skill or ability. Additional information regarding Cabana, including its fees, can be found in Cabana’s Form ADV, Part 2. A copy of which is available upon request or online at www.adviserinfo.sec.gov/. This material is proprietary, and is not to be copied, reproduced, altered, deconstructed, or distributed without the express written consent of Cabana, LLC.

The performance returns, benchmark comparisons, and metrics in this factsheet represent actual composite returns during a time when actual client funds were invested. Unless otherwise indicated, performance data, benchmark comparisons, and statistics are for illustrative purposes and shown gross of advisory fees but net of trading costs. Performance data is expressed in U.S. dollar currency and it includes the reinvestment of dividends and capital gains. Target Drawdown is identified on a gross of advisory fees but net of trading costs basis. Net performance includes a maximum investment advisory fee of 3% prior to March 1, 2017 and 2% thereafter. Morningstar’s Moderate Target Risk (http://www.morningstar.com/InvGlossary/morningstar-target-risk-indexes.aspx) index follows a moderate equity risk preference and is based on well-established asset allocation methodology from Ibbotson Associates, a Morningstar company. SPY is an ETF that tracks the performance of 500 leading U.S. large cap companies. The funds in the Morningstar Tactical Allocation Category (http://im.mstar.com/im/newhomepage/Morningstar_Category_Definitions_US_June_2016.pdf) seek to provide capital appreciation and income by actively shifting allocations across investments. Benchmark indices will likely materially differ from Cabana’s portfolio strategies. Detailed information as to how the returns are calculated can be obtained online from the following link: http://bit.ly/thecabanagroup_performance_reporting_methodology_July2019.

Cabana claims compliance with the Global Investment Performance Standards (GIPS®). Cabana has been independently GIPS verified on a firm-wide basis for the period January 1, 2012 to December 31, 2018. All seven of Cabana’s core portfolios have been independently examined from portfolio inception to December 31, 2018. The verification and performance examination reports are available upon request. GIPS Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS® standards. Verification does not ensure the accuracy of any specific composite presentation unless an independent performance examination has been conducted for a specific time period. Any reference to “Inception Date” or “Inception” represents closing prices as of the trading day immediately prior to the beginning of the specified time period. To receive a GIPS compliance presentation, Cabana’s verification report(s), and/or a list of composite descriptions please email your request to info@thecabanagroup.com. The Global Investment Performance Standards are a trademark of the CFA Institute. The CFA Institute has not been involved in the preparation or review of this report/advertisement.

No client should assume that the future performance of any specific investment or strategy will be profitable or equal to past performance. All investment strategies have the potential for profit or loss. All strategies have different degrees of risk. There is no guarantee that any specific investment or strategy will be suitable or profitable for any investor. Asset allocation and diversification will not necessarily improve an investor’s returns and cannot eliminate the risk of investment losses. While loss tolerance and targeted “drawdown” are identified on the front end for each portfolio, Cabana’s algorithm does not take any one client’s situation into account. It is the responsibility of the advisor to determine what is suitable for the client. An advisor should not simply rely on the name of any portfolio to determine what is suitable. Cabana manages assets on multiple custodial platforms. Performance results for specific investors will vary based upon differences in associated costs and asset availability. All references to Cabana’s proprietary algorithm in this fact sheet refer to the most current version of the algorithm as of the date this fact sheet is published.

© 2019 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Riskalyze is an award winning, third party independent risk alignment platform. Risk Scores are proprietary to Riskalyze, modeled using actual and hypothetical information, and intended only for informational and educational purposes. More information about Riskalyze and its methodology can be found at www.riskalyze.com.