Core Tactical 16

Cabana

March 2020

The Target Drawdown 16 is one of six portfolios in Cabana's Target Drawdown Series. The objective of the portfolio is to seek a limited volatility range (“target drawdown”) of sixteen percent (16%) from peak to trough. The portfolio is weighted toward higher beta growth assets during all but the most unfavorable market conditions. It is designed to capture appreciation in growth assets, such as small cap equities, emerging markets and commodities during periods of economic expansion, while remaining resistant to severe market downturn. All Cabana portfolios are considered Core All Asset Tactical and provide viable options for most long-term investors.

Quick Facts
  • Portfolio Manager: G. Chadd Mason
  • Minimum Investment: $25,000
  • Target Drawdown: 16%
  • Inception Date: October 1, 2016
Drawdown Statistics
  • Max Drawdown -14.52%
  • 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) 14.62%
  • Std Dev 3 Yr (Mo-End) 12.82%
  • Std Dev 5 Yr (Mo-End) NA

The Target Drawdown 16 is rated five stars overall by Morningstar, Inc. as of December 31, 2019. This portfolio is in Morningstar’s Tactical Allocation Category, which is made up of 326 total funds. A five-star rating puts the Target Drawdown 16 in the top 10% of its category.
ID: F000010FNT

GIPS Performance

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

The Target Drawdown 16 has been performance examined consistent with GIPS® standards. The Target Drawdown 16 GIPS Report can be accessed here.

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What is Target Drawdown?

SVG

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

SVG

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

SVG

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.

SVG

All portfolios in the Target Drawdown Series are constructed with the primary goal of 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 2020

Annual Returns

2016 returns are from portfolio inception date through Dec. 31, 2016.

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 16 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 2%. Morningstar’s Aggressive Target Risk (http://www.morningstar.com/InvGlossary/morningstar-target-risk-indexes.aspx) index follows an aggressive equity risk preference and is based on well-established asset allocation methodology from Ibbotson Associates, a Morningstar company. The index’s allocation follows an aggressive equity risk preference. 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.

GIPS® is a trademark of the CFA Institute. The CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. To receive a GIPS Report and/or a firm’s list of composite/pooled fund descriptions please email your request to info@thecabanagroup.com.

Past performance is no guarantee of future results. All investment strategies have different degrees of risk and the corresponding potential for profit or loss. Asset allocation and diversification will not necessarily improve returns and cannot eliminate the risk of investment losses. “Target Drawdown” is merely a descriptive term used to describe the general strategy and objective of the portfolio, it is not a guarantee, nor should it be construed to suggest safety or protection from loss. There is no guarantee that portfolio performance will remain consistent with the targeted drawdown parameter.  While risk 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 and there is no guarantee that Cabana’s strategies will be suitable for any investor. Investors and advisors should not simply rely on the name of any portfolio to determine what is suitable. It is the responsibility of investment advisorto determine what is suitable for their clients. 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. Prior to April 2019, this portfolio was known as Cabana’s Core Tactical 16 Portfolio. Prior to December 2018, this portfolio was known as Cabana’s Growth Core Tactical Portfolio.

The COVID-19 health epidemic has had substantial global economic impact on financial markets. As of March of 2020, restrictions to travel and business spanning the economy for activities not deemed essential have been imposed throughout the United States. These restrictions have caused unprecedented volatility and uncertainty in capital markets and have negatively impacted the economy. It is unknown how severe the impact to the economy and capital markets will be if the epidemic persists for an extended period of time. The epidemic may have a material adverse impact on Cabana’s investment advisory business including, but not limited to, the performance of our portfolio strategies

© 2020 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. Past performance is no guarantee of future results. 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.