Cabana Target Drawdown Professional Series

Target Drawdown Portfolios are designed to manage client expectations by identifying a target drawdown percentage at the beginning of the investment process and striving to stay within that range.

Target Drawdown Professional 5

Cabana

March 2021

Target Drawdown Professional 5

The Target Drawdown Professional 5 is the most conservative of the five portfolios in Cabana's longest-running product series – its Target Drawdown Professional Series. The primary objective of this portfolio is to seek a limited volatility range (“target drawdown”) of five percent (5%) from peak to trough. The portfolio primarily invests in broad asset class ETFs among the five major asset classes and is designed to emphasize stability by concentrating allocation to low beta assets. Targeted risk parameters are managed using inverse and non-correlated assets. Conservative investors seeking numerically defined risk objectives and preservation of capital may find this portfolio attractive. The Target Drawdown Professional Series was designed exclusively alongside a suite of custom services for professional investment advisors and their clients. All portfolios in Cabana’s Target Drawdown Professional Series provide a viable option for most long-term investors. On September 17, 2020, Cabana released a series of Target Drawdown ETFs for use within the Target Drawdown Professional Series. Target Drawdown ETFs are comprised of what we believe is an optimal mix of broad asset-class ETFs (each fund is an ETF of ETFs). By utilizing Target Drawdown ETFs, in addition to other third-party ETFs, Cabana strives to increase the cost and tax efficiency of its actively managed Professional Series.

Quick Facts
  • Portfolio Manager: G. Chadd Mason
  • Minimum Investment: $25,000
  • Target Drawdown: 5%
  • Inception Date: April 1, 2017
Drawdown Statistics
  • Max Drawdown COVID-19 Modification -14.51%
  • Max Drawdown # of Periods 2
  • Max Drawdown Peak Date 02/20
  • Max Drawdown Valley Date 03/20
Standard Deviation
  • Std Dev 1 Yr (Mo-End) 8.38%
  • Std Dev 3 Yr (Mo-End) 9.75%
  • Std Dev 5 Yr (Mo-End) NA
  • Current Yield (Mo-End) 1.90%

Annual Returns

2017 returns are from portfolio inception date through Dec. 31, 2017. Gray highlighting indicates portfolio performance prior to the March 2020 update to the regular five-scene version of Cabana’s Cyclical Asset Reallocation Algorithm.

The Target Drawdown Professional 5 is rated two stars overall by Morningstar, Inc. as of December 31, 2020. This portfolio is in Morningstar’s Tactical Allocation Category, which is made up of 311 total funds.
ID: F000010FMV

Annualized Returns

Returns are calculated as of Dec. 31 of the prior calendar year.

Risk Statistics

Since inception: April 1, 2017

Growth of $1,000

Drawdown

Please refer to Page 9 for important disclaimers.
Target Drawdown Professional 7

Cabana

March 2021

Target Drawdown Professional 7

The Target Drawdown Professional 7 is one of five portfolios in Cabana's longest-running product series – its Target Drawdown Professional Series. The objective of this portfolio is to seek a limited volatility range (“target drawdown”) of seven percent (7%) from peak to trough. It primarily invests in broad asset class ETFs among the five major asset classes. Allocation is inherently weighted toward low beta asset classes. Targeted risk parameters are managed using inverse and non-correlated assets. Conservative investors seeking numerically defined risk objectives and a lower (or reduced) volatility asset allocation may find this portfolio attractive. The Target Drawdown Professional Series was designed exclusively alongside a suite of custom services for professional investment advisors and their clients. All portfolios in Cabana’s Target Drawdown Professional Series provide a viable option for most long-term investors. On September 17, 2020, Cabana released a series of Target Drawdown ETFs for use within the Target Drawdown Professional Series. Target Drawdown ETFs are comprised of what we believe is an optimal mix of broad asset-class ETFs (each fund is an ETF of ETFs). By utilizing Target Drawdown ETFs, in addition to other third-party ETFs, Cabana strives to increase the cost and tax efficiency of its actively managed Professional Series.

Quick Facts
  • Portfolio Manager: G. Chadd Mason
  • Minimum Investment: $25,000
  • Target Drawdown: 7%
  • Inception Date: October 1, 2016
Drawdown Statistics
  • Max Drawdown -7.78%
  • Max Drawdown # of Periods 2
  • Max Drawdown Peak Date 02/20
  • Max Drawdown Valley Date 03/20
Standard Deviation
  • Std Dev 1 Yr (Mo-End) 9.15%
  • Std Dev 3 Yr (Mo-End) 8.70%
  • Std Dev 5 Yr (Mo-End) NA
  • Current Yield (Mo-End) 2.71%

Annual Returns

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

The Target Drawdown Professional 7 is rated four stars overall by Morningstar, Inc. as of December 31, 2020. This portfolio is in Morningstar’s Tactical Allocation Category, which is made up of 311 total funds.
ID: F000010FNS

Annualized Returns

Returns are calculated as of Dec. 31 of the prior calendar year.

Risk Statistics

Since inception: October 1, 2016

Growth of $1,000

Drawdown

Please refer to Page 9 for important disclaimers.
Target Drawdown Professional 10

Cabana

March 2021

Target Drawdown Professional 10

The Target Drawdown Professional 10 is the original of the five portfolios in Cabana's longest-running product series – its Target Drawdown Professional Series. All Target Drawdown Professional Portfolios are a variation of the Target Drawdown Professional 10 and have been constructed by adjusting the drawdown parameters to the desired volatility range. The objective of this portfolio is to seek a limited volatility range (“target drawdown”) of ten percent (10%) from peak to trough. The portfolio primarily invests in broad asset class ETFs among the five major asset classes. Allocation is distributed among major asset classes with a sensitivity to market downturn. Targeted risk parameters are managed using inverse and non-correlated assets. Investors seeking numerically defined risk objectives and a moderate volatility allocation may find this portfolio attractive. The Target Drawdown Professional Series was designed exclusively alongside a suite of custom services for professional investment advisors and their clients. All portfolios in Cabana’s Target Drawdown Professional Series provide a viable option for most long-term investors. On September 17, 2020, Cabana released a series of Target Drawdown ETFs for use within the Target Drawdown Professional Series. Target Drawdown ETFs are comprised of what we believe is an optimal mix of broad asset-class ETFs (each fund is an ETF of ETFs). By utilizing Target Drawdown ETFs, in addition to other third-party ETFs, Cabana strives to increase the cost and tax efficiency of its actively managed Professional Series.

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) 9.01%
  • Std Dev 3 Yr (Mo-End) 10.20%
  • Std Dev 5 Yr (Mo-End) 9.01%
  • Current Yield (Mo-End) 2.44%

Annual Returns

The Target Drawdown Professional 10 is rated four stars overall by Morningstar, Inc. as of December 31, 2020. This portfolio is in Morningstar’s Tactical Allocation Category, which is made up of 311 total funds.
ID: F000010FNU

Annualized Returns

Returns are calculated as of Dec. 31 of the prior calendar year.

Risk Statistics

Since inception: January 1, 2012

Growth of $1,000

Drawdown

Please refer to Page 9 for important disclaimers.
Target Drawdown Professional 13

Cabana

March 2021

Target Drawdown Professional 13

The Target Drawdown Professional 13 is one of five portfolios in Cabana's longest-running product series – its Target Drawdown Professional Series. The objective of this portfolio is to seek a limited volatility range (“target drawdown”) of thirteen percent (13%) from peak to trough. The portfolio primarily invests in broad asset class ETFs among the five major asset classes. Its allocation allows for potential capital appreciation of growth assets during times of favorable conditions, while maintaining its targeted risk parameters through exposure to inversely or non-correlated assets during periods of less favorable market conditions. Like other Target Drawdown Professional Portfolios, this portfolio numerically defines risk objectives, but may be appropriate for investors seeking growth opportunities with tolerance to a higher volatility asset allocation. The Target Drawdown Professional Series was designed exclusively alongside a suite of custom services for professional investment advisors and their clients. All portfolios in Cabana’s Target Drawdown Professional Series provide a viable option for most long-term investors. On September 17, 2020, Cabana released a series of Target Drawdown ETFs for use within the Target Drawdown Professional Series. Target Drawdown ETFs are comprised of what we believe is an optimal mix of broad asset-class ETFs (each fund is an ETF of ETFs). By utilizing Target Drawdown ETFs, in addition to other third-party ETFs, Cabana strives to increase the cost and tax efficiency of its actively managed Professional Series.

Quick Facts
  • Portfolio Manager: G. Chadd Mason
  • Minimum Investment: $25,000
  • Target Drawdown: 13%
  • Inception Date: October 1, 2016
Drawdown Statistics
  • Max Drawdown -12.09%
  • 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) 9.36%
  • Std Dev 3 Yr (Mo-End) 12.08%
  • Std Dev 5 Yr (Mo-End) NA
  • Current Yield (Mo-End) 1.55%

Annual Returns

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

The Target Drawdown Professional 13 is rated three stars overall by Morningstar, Inc. as of December 31, 2020. This portfolio is in Morningstar’s Tactical Allocation Category, which is made up of 311 total funds.
ID: F000010FNR

Annualized Returns

Returns are calculated as of Dec. 31 of the prior calendar year.

Risk Statistics

Since inception: October 1, 2016

Growth of $1,000

Drawdown

Please refer to Page 9 for important disclaimers.
Target Drawdown Professional 16

Cabana

March 2021

Target Drawdown Professional 16

The Target Drawdown Professional 16 is one of five portfolios in Cabana's longest-running product series – its Target Drawdown Professional Series. The objective of this portfolio is to seek a limited volatility range (“target drawdown”) of sixteen percent (16%) from peak to trough. The portfolio primarily invests in broad asset class ETFs among the five major asset classes. Allocation 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. Aggressive investors seeking growth opportunities through significant equity exposure throughout the market cycle may find this portfolio attractive, but like all Target Drawdown Professional Portfolios, it numerically defines risk objectives and manages targeted risk parameters using inverse and non-correlated assets. The Target Drawdown Professional Series was designed exclusively alongside a suite of custom services for professional investment advisors and their clients. All portfolios in Cabana’s Target Drawdown Professional Series provide a viable option for most long-term investors. On September 17, 2020, Cabana released a series of Target Drawdown ETFs for use within the Target Drawdown Professional Series. Target Drawdown ETFs are comprised of what we believe is an optimal mix of broad asset-class ETFs (each fund is an ETF of ETFs). By utilizing Target Drawdown ETFs, in addition to other third-party ETFs, Cabana strives to increase the cost and tax efficiency of its actively managed Professional Series.

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) 9.61%
  • Std Dev 3 Yr (Mo-End) 13.43%
  • Std Dev 5 Yr (Mo-End) NA
  • Current Yield (Mo-End) 1.51%

Annual Returns

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

The Target Drawdown Professional 16 is rated three stars overall by Morningstar, Inc. as of December 31, 2020. This portfolio is in Morningstar’s Tactical Allocation Category, which is made up of 311 total funds.
ID: F000010FNT

Annualized Returns

Returns are calculated as of Dec. 31 of the prior calendar year.

Risk Statistics

Since inception: October 1, 2016

Growth of $1,000

Drawdown

Please refer to Page 9 for important disclaimers.
Target Income Portfolio

Cabana

Target Income Portfolio

As investors search for income and interest rates remain historically low, the need for reliable income investment strategies is more important than ever. The Target Income Portfolio was released at Cabana in April 2021 and is designed for investors seeking a steady stream of income, while minimizing sequence of return risk as well as overall drawdown through a tactical allocation model. The portfolio seeks a yield in excess of 4%, increasing as interest rates rise. Like all Cabana portfolios and products, it utilizes the firm’s proprietary Cyclical Asset Reallocation Algorithm (“CARA”) to evaluate the repeating economic cycle and allocate assets accordingly.

Quick Facts
  • Portfolio Manager: G. Chadd Mason
  • Minimum Investment: $25,000
  • Target Drawdown: 12%
  • Inception Date: N/A - This portfolio became publicly available on April 1, 2021, but funds are not yet invested.
Drawdown Statistics
  • Max Drawdown
  • Max Drawdown # of Periods
  • Max Drawdown Peak Date
  • Max Drawdown Valley Date
Standard Deviation
  • Std Dev 1 Yr (Mo-End)
  • Std Dev 3 Yr (Mo-End)
  • Std Dev 5 Yr (Mo-End)
  • Current Yield (Mo-End) 4.59%

Annual Returns

Annualized Returns

Returns are calculated as of Dec. 31 of the prior calendar year.

Risk Statistics

Since inception: N/A - This portfolio became publicly available on April 1, 2021, but funds are not yet invested.

Growth of $1,000

Drawdown

Please refer to Page 9 for important disclaimers.
Cabana Target Drawdown Professional Series Disclaimers

Cabana LLC, dba Cabana Asset Management (“Cabana”), is an investment adviser registered with the SEC. 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 CRS and Form ADV Part 2, copies of  which are available upon request or online at https://thecabanagroup.com/form-crs and https://thecabanagroup.com/adv-part2 or 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. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, accounting, or personalized investment advice. You should consult your own tax, legal, accounting, and financial advisors before engaging in any transaction.

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, asset allocation charts, drawdown, and other statistics are for illustrative purposes, calculated as end of month, and shown gross of advisory fees but net of trading costs. Asset allocation may vary intramonth if a reallocation has occurred. Performance data is expressed in U.S. dollar currency and it includes the reinvestment of dividends and capital gains. Consistent with our ongoing third-party GIPS verification efforts, Cabana will from time to time and without notice, make minor non-material updates and corrections to performance data which do not significantly impact performance. These changes will be reflected on the most recent fact sheets and independent verification reports, as applicable. 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.

The Target Drawdown Professional Series invests primarily in Cabana’s Target Drawdown ETFs (“Cabana ETFs”), in addition to other third-party ETFs. Cabana serves as sub-advisor to the Cabana ETFs and is responsible for their investment strategy. The Cabana ETFs were launched in in partnership with private label ETF advisor Exchange Traded Concepts (“ETC”)Cabana receives an asset management fee for its investment advisory services related to Cabana’s ETFs. The investment strategy employed to manage the Cabana ETFs is similar to that of Cabana’s other Target Drawdown products and utilizes Cabana’s proprietary algorithm, though each product type has some material differences and performance will vary. Detailed information regarding Cabana’s ETF can be found in the offering documents, which are available at https://thecabanagroup.com/etf-prospectus/

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 data, statistics, including drawdown, and asset allocation for specific investors will vary based upon differences in associated costs, inflows and outflows, custodial fees, and asset availability during the reporting period and may not be identical to reported data. 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 May 2020, the Target Drawdown Professional 5 was known as the Target Drawdown Income 5. Prior to May 2020, the Target Drawdown Professional 7 was known as the Target Drawdown 7. Prior to May 2020, the Target Drawdown Professional 10 was known as the Target Drawdown 10. Prior to May 2020, the Target Drawdown Professional 13 was known as the Target Drawdown 13. Prior to May 2020, the Target Drawdown Professional 16 was known as the Target Drawdown 16.

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.