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Cabana

July 2019

The Target Drawdown Efficient 10 is one of seven portfolios in Cabana's Target Drawdown Series. It is a variation of the Target Drawdown 10 that employs a version of Cabana’s proprietary algorithm designed to reallocate assets less frequently than other portfolios in the Target Drawdown Series. Less frequent trading generally minimizes capital gains taxes. Like other Cabana Portfolios, it is responsive to macro-economic changes as well as changes in the technical condition of the broad markets. Through this combination, the Target Drawdown Efficient 10 is designed to offer investors a tax efficient solution within a dynamic portfolio. 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. It may contain inversely and non-correlated assets throughout the economic cycle, and in each corresponding tactical allocation. 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. Clients have been invested in the Target Drawdown Efficient 10 for less than one year, and therefore, all risk statistics are not presented.

Quick Facts
  • Portfolio Manager: G. Chadd Mason
  • Minimum Investment: $25,000
  • Target Drawdown: 10%
  • Inception Date: November 1, 2018
Drawdown Statistics
  • Max Drawdown -7.09%
  • Max Drawdown # of Periods 1
  • Max Drawdown Peak Date 12/2018
  • Max Drawdown Valley Date 12/2018
Standard Deviation
  • Std Dev 1 Yr (Mo-End) NA
  • Std Dev 3 Yr (Mo-End) NA
  • Std Dev 5 Yr (Mo-End) NA
GIPS Performance

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

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

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 Efficient 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/.

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 1.5%. 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. PTTRX is comprised primarily of intermediate-term, investment grade bonds. Benchmark indices may materially differ from Cabana’s portfolio strategies. Detailed information as to how the returns are calculated can be obtained online from the following link: https://cabanaportfolio.com/Performance-Reporting-Methodology-Cabana.

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, our Cabana’s verification report(s), and/or a list of composite descriptions please email your request to info@cabanaportfolio.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 may 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.