Cabana Target Drawdown 10 ETF (TDSC US) – Portfolio Construction Methodology

The investment process governing the actively managed Cabana Target Drawdown 10 ETF pursues long-term growth while explicitly targeting a maximum peak-to-trough drawdown of about 10% under adverse conditions. The fund invests primarily in other ETFs, and selectively in direct securities, to build exposure across global equities, fixed income, real estate, currencies, and commodities, including high yield and emerging-markets securities, thereby creating multiple, partly uncorrelated return streams. Cabana’s Cyclical Asset Reallocation Algorithm (CARA) evaluates yield-curve structure, broad corporate earnings data, and price trends to identify regime shifts, rotating toward defensive assets such as cash and short-duration instruments when deterioration signals arise. CARA monitors positions daily and reallocates among less- and inversely-correlated asset classes to limit downside while preserving participation in risk assets during upswings. The portfolio typically remains fully invested, with the sub-adviser retaining discretion to override model recommendations when market dynamics deviate from historical patterns.

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