Balanced Portfolio Performance

The objective of the Balanced Portfolio is to seek to achieve a limited volatility range (“drawdown” or the maximum amount an investment can be expected to fall during a specific period) of thirteen percent (13%) from peak to trough. The portfolio is comprised of various assets, based on each phase of the economic cycle, that allow for potential capital appreciation of growth assets during times of favorable conditions, while maintaining relative stability through exposure to inversely or non-correlated assets during periods of less favorable market conditions.

Are you already invested in Cabana’s Balanced Portfolio? Below is how the portfolio is allocated as of December 31, 2017. 

Cabana’s proprietary algorithm seeks to monitor economic and technical market conditions so that client funds are invested in assets that we believe are particularly attractive at a given time within the business cycle. Investments are monitored daily, and allocated and reallocated among non-correlated and inversely-correlated asset classes in an effort to reduce exposure to potential market declines. The corresponding charts below reflect Cabana’s Balanced Portfolio allocation as of December 31, 2017.

While it is the intent of Cabana that individual client account allocations mirror Portfolio allocation, individual client account allocations may vary from the Portfolio allocation because of a variety of factors, including but not limited to, investment date, investment amount, transaction costs, account type, and account restrictions. 


Balanced Portfolio Monthly Returns (as of December 31, 2017)

Returns are presented net of maximum 3% advisory fees and commissions through February 28, 2017. Returns are presented net of maximum 2% advisory fees and commissions beginning March 1, 2017. Returns include reinvestment of dividends. Cabana,  LLC manages assets on multiple custodial platforms. Performance results may vary based upon differences in associated costs and asset availability within the Cabana Model.


Cabana Balanced Portfolio Growth (as of December 31, 2017)

Cabana seeks returns that exceed the performance of the S&P 500 and its benchmarks, the Vanguard Balanced Index Fund (VBINX) and Pimco Total Return (PTTRX). Data reflects net of commissions and maximum advisory fees and includes reinvestment of dividends.Comparison to other benchmark indices is for illustrative purposes only. These indices may materially differ from the Balanced Portfolio. Past performance does not guarantee future results.  Data prior to 9/2/2016 is derived from hypothetical back-testing, which contains inherent limitations. 

Cabana Balanced Portfolio Drawdown (as of December 31, 2017)

Drawdown is the maximum amount an investment can be expected to fall during a specific period. Cabana seeks returns that exceed the performance of the S&P 500 and its benchmarks, the Vanguard Balanced Index Fund (VBINX) and Pimco Total Return (PTTRX). Illustrated returns are net of commissions and maximum advisory fees, and include reinvestment of dividends. Comparison to other benchmark indices is for illustrative purposes only. These indices may materially differ from the Balanced Portfolio. Past performance does not guarantee future results. Data prior to September 2, 2016 is derived from hypothetical back-testing, which contains inherent limitations.


Trailing Returns (as of December 31, 2017)

Cabana seeks returns that exceed the performance of the S&P 500 and its benchmarks, the Vanguard Balanced Index Fund (VBINX) and Pimco Total Return (PTTRX). Data reflects net of commissions and maximum advisory fees and includes reinvestment of dividends. Comparison to other benchmark indices is for illustrative purposes only. These indices may materially differ from the Balanced Portfolio. Past performance does not guarantee future results.  Data prior to 9/2/2016 is derived from hypothetical back-testing, which contains inherent limitations. 


Statistics (as of December 31, 2017)

Cabana seeks returns that exceed the performance of the S&P 500 and its benchmarks, the Vanguard Balanced Index Fund (VBINX) and Pimco Total Return (PTTRX). Data reflects net of commissions and maximum advisory fees and includes reinvestment of dividends. Comparison to other benchmark indices is for illustrative purposes only. These indices may materially differ from the Balanced Portfolio. Past performance does not guarantee future results.  Data prior to 9/2/2016 is derived from hypothetical back-testing, which contains inherent limitations. 


You should know: 

  • Benchmark: While the Cabana Portfolio is not correlated to any benchmark or index, its closest benchmark is the Vanguard Balanced Index Fund (VBINX).
  • Custodian: TD Ameritrade
  • VBINX = Vanguard Balanced Index
  • S&P = S&P 500 Total Index
  • PTTRX = Pimco Total Return Index
  • Cabana,  LLC manages assets on multiple custodial platforms. Performance results may vary based upon differences in associated costs and asset availability within the Cabana Model.

Disclaimers: 
Cabana LLC, dba Cabana Asset Management, is registered as an investment advisor. The firm only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. Registration as an investment advisor is not an endorsement of the firm by securities regulators and does not mean the advisor has achieved a specific level of skill or ability. Performance returns are presented net of commissions and the highest advisory fee ****(3% prior to February 28, 2017; 2% beginning March 1, 2017) charged to any client, and include the reinvestment of dividends and capital gains. Additional information regarding the fees charged can be found in the advisor’s Form ADV, Part 2. No current or prospective client should assume that the future performance of any specific investment or strategy will be profitable or equal to past performance levels. 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. Performance returns prior to September 2, 2016 do not represent actual trading using client assets, but were achieved through retroactive application of a model designed with the benefit of hindsight. Model returns have inherent limitations. Specifically, these returns do not represent actual trading and may not reflect the impact of material economic and market factors on the advisor’s decision-making if the advisor had actually managed the client’s money during this time frame. These return calculations are based in part on backtesting. Backtesting involves a hypothetical reconstruction, based on past market data, of what the performance of a particular account would have been if the advisor had managed the account using a specific investment strategy. Backtested performance results are purely hypothetical and do not reflect actual trading in clients’ accounts.These results should not be viewed as indicative of the advisor’s skill and do not reflect the performance achieved by any specific client. During the period running prior to September 2, 2016 the advisor was not providing advice using this model and clients’ results were materially different. The model that gave rise to these backtested performance results is one that the advisor is now using in managing clients’ accounts. Comparison to other benchmark indices is for illustrative purposes only. These indices may materially differ from the Balanced Portfolio.