Allocating across equity, fixed income and cash equivalents, the Fund utilizes a trend following multi-component model generating either a Risk-On or Risk-Off signal for particular asset classes, allowing the Fund to opportunistically risk-pivot between these sectors by scaling asset class exposures up or down based on model outputs.
The Kensington Active Advantage Fund seeks total return.
The Fund utilizes model signals to shift the overall allocation of the Fund, establishing the percentage allocation range to each of the distinct asset classes. Generally, when the model indicates market conditions are favorable, the Fund will increase exposure in equities and lower quality, higher-yielding fixed income securities. When market conditions are deemed less favorable, the Fund will primarily invest in better-quality fixed income securities and short-term U.S. treasuries / cash equivalents.
The Fund's multi-component model can generate multiple distinct model postures depending on the combination of asset class Risk-On / Risk-Off signals. These portfolio combinations allow the portfolio to shift asset class exposures significantly based upon model outputs.
Typically, the Fund will have exposure to both equity and fixed income securities, but does have the flexibility to go to a full Risk-Off position, allocating to only U.S. treasuries and / or cash equivalents. Alternatively, the model can shift to more opportunistic postures, increasing exposure significantly to equities and high-yield fixed income when the consensus of non-correlated indicators predict relative strength in the market.
There is no guarantee any investment strategy will generate a profit or prevent losses and there is no guarantee the Fund will achieve its investment objective. Please refer to the Fund's Risk Definitions for more information.
Most recent Fund information and investment process overview
Overview and track record of the Active Advantage Strategy that has been implemented into KADIX
View the Active Advantage Fund on public Morningstar website