Alpha Income Core Tactical Portfolio Performance

The objective of the Alpha Income Portfolio is to seek a limited volatility range (“drawdown” or the maximum amount an investment can be expected to fall during a specific period) of five percent (5%) from peak to trough. This portfolio strives to leverage the intrinsic value found in income-producing mutual funds (3-5 star rated by Morningstar) with Cabana's proprietary algorithm. By merging the experience of money managers with the efficiencies of our allocation software, the portfolio is designed to provide investors access to a regular stream of income, along with the confidence that comes with diversification, liquidity and a tested model.

Alpha Income Core Tactical Risk Number

The Risk Number is calculated by Riskalyze and based on downside risk. On a scale from 1 of 99, the greater the potential loss, the greater the Risk Number. The Cabana Alpha Income Portfolio is available within Riskalyze at #CABANAAI Alpha Income Core Tactical.


Are you already invested in Cabana’s Alpha Income Portfolio? Below is how the portfolio is allocated as of August 31, 2018. 

Cabana's proprietary algorithm is designed to evaluate the market daily and allocate investments with the goal of reducing exposure to potential market declines. Cabana invests in those assets that its proprietary algorithm determines to be particularly attractive at any given time. This information is reviewed daily. The corresponding charts below reflect Cabana's Alpha Income Portfolio allocation as of August 31, 2018.

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.


Alpha Income Portfolio Monthly Returns as of August 31, 2018

Returns are presented net of maximum 2% advisory fees and commissions. 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 Alpha Income Portfolio Growth as of August 31, 2018

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.


Cabana Alpha Income Portfolio Drawdown as of August 31, 2018

 Drawdown is the maximum amount an investment can be expected to fall during a specific period. The above drawdown chart reflects monthly data. 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.


Trailing Returns as of August 31, 2018

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.


Global Investment Performance Standards (GIPS) 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). 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.


Statistics as of August 31, 2018

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.


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.

Click here for more information regarding changes to our algorithm and performance reporting issued September, 2018.


Disclaimers:
Cabana LLC, dba Cabana Asset Management (“Cabana”), is registered as an investment adviser. The firm 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 the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. Unless otherwise specified as being independently verified in compliance with the GIPS standards, the performance returns represented are hypothetical and derived from Cabana’s proprietary algorithm, which has been applied to Cabana’s actual client accounts since April 1, 2017. Performance returns are geometrically linked for the applicable time period based on return data derived from Cabana’s proprietary algorithm. They are modeled to be net of commissions and to include the highest advisory fees (2% charged to any client) and include the reinvestment of dividends and capital gains. Performance returns prior to April 1, 2017 are derived from hypothetical back-testing of the model and do not represent model returns during a time when actual client funds were invested. Hypothetical returns have inherent limitations. Back-testing involves a hypothetical reconstruction, based on past market data, of what the performance of a particular account would have been if the adviser had managed the account using a specific investment strategy. Hypothetical returns do not represent actual trading and may not accurately reflect the impact of transactional costs as well as material economic and market factors on the adviser’s decision-making during this time frame. As a result, actual returns may vary significantly from hypothetical returns. Pursuant to the firm's annual GIPS re-certification, modeled returns may be compared with actual returns which are independently verified for the time specified time periods. GIPS verification assesses whether (1) the firm has complied with all composite construction requirements of GIPS on a firm-wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with GIPS. 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 firm's verification report(s), and/or a list of composite descriptions please email your request to info@cabanaportfolio.com. Performance returns and comparison to other benchmark indices are for illustrative purposes only. Other benchmark indices may materially differ from the Alpha Income Portfolio. 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. Detailed information as to how the returns are calculated can be obtained online from the following link https://cabanaportfolio.com/wp- content/uploads/2018/07/Performance-Reporting-Methodology_July-2018.pdf. Performance returns should not be viewed as indicative of the adviser’s skill and do not reflect the performance achieved by any specific client. 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. While loss tolerance and targeted “drawdown” are identified on the front end, Cabana's algorithm does not take any one client's situation into account. It is the responsibility of the adviser to determine what is suitable for the client. An adviser should not simply rely on the name of any portfolio to determine what is suitable. Riskalyze is an award winning, third party independent risk alignment platform. More information about Riskalyze can be found at https://www.riskalyze.com/. This material supersedes all prior published versions. All references to Cabana's proprietary algorithm refer to the most current version of the algorithm as of the date this is published. 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 https://www.adviserinfo.sec.gov/. This material is for informational purposes and does not constitute an offer to buy or sell any securities.