Market insight and a highlight of Cabana’s year-to-date performance.
Cabana’s six portfolios range from “Conservative” to “Aggressive” and include an income strategy portfolio. Performance is as of market close April 24, 2017 and is presented net of advisory fees and commissions.
With the exception of the Conservative portfolio, which was down slightly (-.08), all portfolios were up ranging from .06 (Growth) to .90 (Balanced).
As discussed last week, we saw the equity markets stall for several weeks after the pullback from late February highs. During that time we saw interest and yield sensitive assets outperform. These included corporate and government bonds, Reits and dividend payers. This rotation away from growth and higher beta assets was picked up by our software and resulted in us re-allocating into more defensive investments. I pointed out that without positive earnings being reported and a renewed optimism for growth, equity markets could have a difficult time re-testing the February highs. No sooner had we discussed this than earnings began doing just that, exceeding expectations. Not only have large and small cap US companies reported marked earnings growth, but so has China, which reported positive GDP growth at the highest pace since 2015. Finally, we saw elections in France re-assure investors that the EU will remain intact. This predicted stability translates to positive growth opportunities for European companies, especially banks. In response to all this good news, domestic and foreign equity jumped while bonds dropped and rates bounced. Our software monitors and integrates all of these factors and has indicated a move back to a more bullish posture, which we retained form early November 2016 through last week. These whipsaws occur at times and we don’t question the science behind our model. Accordingly, we will re-position tomorrow based upon what is in front of us.
Year-to-date net-of-fees performance:
ALPHA INCOME +2.56%
Performance is presented net of advisory fees and commissions (Conservative – Aggressive is presented net of 3% fees from January 1, 2017 – February 28, 2017 and 2% beginning March 1, 2017; Alpha Income is presented net of 2% fees)
-G. Chadd Mason, CEO
*Performance numbers incated with (+) for positive return and (-) for negative return.
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All performance returns are presented net-of-fees and include the reinvestment of dividends and capital gains. Benchmark comparisons are presented gross-of-fees.
Past performance may not be indicative of future returns. 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 a particular client.
Historical performance results for investment indexes and/or categories typically do not show the impact of transaction and/or custodial charges or the deduction of an advisory fee, which may decrease historical performance results. There can be no assurances that a strategy will match or exceed its benchmark.
Some performance returns 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 adviser’s decision-making if the adviser had actually managed the client’s money during this time frame.
Different types of investments involve higher and lower levels of risk. There is no guarantee that a specific investment or strategy will be suitable or profitable for an investor’s portfolio. There are no assurances that a portfolio will match or exceed any particular benchmark.