Kensington Hedged Premium Income ETF (KHPI)

Allocates to S&P 500 ETFs for potential equity growth and dividend income, while utilizing active option strategies to hedge against market savings and generate premium income.

Investment Objective

Kensington Hedged Premium Income ETF (KHPI) seeks current income with the potential for capital appreciation.

Key Characteristics

• Attractive Income: Seeks to provide compelling, managed income through a combination of option premiums and equity dividends
• Participate in Rising Markets: Utilizes option writing strategy that strives to capture upside potential from an underlying equity portfolio while only partially limiting gains, unlike traditional derivative income strategies
• Downside Hedge: Options hedging strategy can reduce drawdowns during times of stress, allowing investors to stay invested and avoid emotional decision-making
• Expertise: Portfolio Management team leverages over 60 years of combined experience to employ active options management aimed at maximizing results
• Tax Efficiency: Leverages S&P 500 Index Options that are classified as IRS Section 1256 contracts, which are subject to lower tax rates - 60% long-term / 40% short-term capital gain/loss.

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. For important information about the risks, please refer to the Fund's Risk Definitions.  

*Net and Gross are the same

^**The SEC Yield represents net investment income earned by the Fund over the 30-Day period expressed as an annual percentage rate based on the Fund's share price at the end of the 30-Day period. 

^**30 Day Median Bid Ask is a calculation of Fund’s median bid-ask spread, expressed as a percentage rounded to the nearest hundredth, computed by: identifying the Fund’s national best bid and national best offer as of the end of each 10 second interval during each trading day of the last 30 calendar days; dividing the difference between each such bid and offer by the midpoint of the national best bid and national best offer; and identifying the median of those values.

Risk Factors

The Fund invests in options that derive their performance from the performance of the S&P 500 Index. Selling (writing) and buying options are speculative activities and entail greater than ordinary investment risks. The Fund’s use of put options can lead to losses because of adverse movements in the price or value of the underlying asset, which may be magnified by certain features of the options. When selling a put option, the Fund will receive a premium; however, this premium may not be enough to offset a loss incurred by the Fund if the price of the underlying asset is below the strike price by an amount equal to or greater than the premium. Purchased put options may expire worthless and the Fund would lose the premium it paid for the option. The Fund may lose significantly more than the premiums it receives in highly volatile market conditions.

The Fund will invest in short term put options which are financial derivatives that give buyers the right, but not the obligation, to sell (put) an underlying asset at an agreed-upon price and date. The Fund’s use of options may reduce the Fund’s ability to profit from increases in the value of the underlying asset. The Fund could experience a loss or increased volatility if its derivatives do not perform as anticipated or are not correlated with the performance of their underlying asset or if the Fund is unable to purchase or liquidate a position.

The Fund was recently organized and has no operating history. As a result, investors have a limited track record on which to base their investment decision. Investments involve risk including the possible loss of principal.

^*Holdings are subject to change.

  Fact Sheet

  Prospectus

  Statement of Additional Information (SAI)

  Notification of Source of Distributions (9/30/2024)