Kensington Asset Management

Dynamic Allocation Fund

Seeks participation in rising equity markets, while striving to reduce correlation to equity markets in times of market decline and/or volatility by alternating between a Risk-On Risk-Off state.

Objective

The Dynamic Allocation Fund (the “Fund” or “KAGIX”) seeks capital gains.

Why Invest

  • Adaptive Equity Participation: The Fund dynamically adjusts its exposure between equities and cash or U.S. Treasuries. This approach seeks to allow investors to capture market gains while reducing drawdown during periods of heightened volatility, providing an alternative to traditional buy-and-hold strategies.
  • Drawdown Mitigation: In times of increased market volatility, the Fund reduces equity exposure . This defensive measure is designed to help limit losses and enhance stability during market downturns.
  • Long-Term Growth Potential: By focusing on growth equities when market conditions are favorable and maintaining the flexibility to shift to cash equivalents as needed, the Fund aims to balance risk and return, supporting long-term capital appreciation.

Overview

KAGIX is a tactical allocation fund that alternates between equities and cash.

Formerly the Kensington Dynamic Growth Fund

  • Rising Markets

    Risk-On
    Equity Index ETFs

  • Declining/Volatile Markets

    Risk-Off
    U.S. Treasuries and Cash Equivalents

Daily Change

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Yields & Distributions

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Key Facts

Fees & Expenses

Risk Characteristics

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Total Returns (%)

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Inception date: October 23, 2020. Fund Expense Ratio: 1.42%.
Returns greater than 1 year are annualized.

Growth of $10,000

As of -

The growth of $10,000 chart shows a hypothetical $10,000 buy-and-hold investment in the fund since inception, with reinvested dividends and capital gains, reflecting applicable fees and expenses.

Investors may not invest in an index directly, unlike the Fund’s returns, an index does not reflect any fees and expenses.

 

Materials

Fund Literature

Regulatory Documents

Risk Definitions

Key principal investment risks include, but are not limited to:

  • Management Risk: The Adviser’s reliance on its proprietary trend-following model and asset judgments may be incorrect, potentially failing to achieve desired results.
  • Equity Securities Risk: Equity securities can experience sudden, unpredictable drops or prolonged declines in value. This may result from general market factors or specific issues affecting industries, sectors, geographic markets, or individual companies.
  • Market Risk: Investment market risks, influenced by economic growth, market conditions, interest rates, and political events, affect asset values. Unexpected events like war, terrorism, financial disruptions, natural disasters, pandemics, and recessions can significantly impact investments and market liquidity, causing investor fear and economic instability.
  • Underlying Funds Risk: Investments in underlying funds can lead to duplicated fees and expenses. Each fund has specific risks based on its strategy, and its manager may not always succeed. ETF shares might trade at prices different from their net asset value and incur additional trading costs, potentially affecting performance. Market demand can impact the ability to liquidate holdings optimally.
  • Derivatives Risk: Derivatives involve leverage, leading to potential gains or losses greater than the initial investment, with value fluctuations that may not perfectly correlate with the market. Futures contracts carry risks like imperfect correlation, lack of liquidity, and unanticipated market movements. Credit default swaps are difficult to value and highly susceptible to liquidity and credit risk. Options are speculative and can result in the loss of the premium paid if the underlying asset’s price does not move favorably.
  • Non-Diversification Risk: Non-diversified investments may allocate more than 5% of total assets to one or more issuers, including non-diversified underlying funds. This can make performance more sensitive to single economic, business, political, or regulatory events compared to diversified investments.
  • Turnover Risk: Higher portfolio turnover can lead to increased transactional and brokerage costs. Turnover rates may significantly exceed 100% annually.
  • US Government Securities Risk: Investments in obligations issued by US government agencies or instrumentalities may not be backed by the US government. If the issuer defaults and the government chooses not to provide financial support, recovery of the investment may not be possible.
  • Models and Data Risk: Investment exposure relies heavily on proprietary quantitative models and third-party data. Incorrect or incomplete models and data can lead to suboptimal investment decisions. Predictive models carry inherent risks, such as incorrect forecasts and unexpected results in low-probability scenarios, potentially causing losses.

For a complete list of potential investment risks associated with this Fund, please refer to its Prospectus.

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost.

Current performance may be lower or higher than the performance data quoted. To obtain performance data current to the most recent month-end please call 866.303.8623.

An investor should consider the investment objectives, risks, and charges and expenses of the fund carefully before investing. A prospectus and a summary prospectus which contains this and other information about the fund may be obtained by visiting here. The prospectus and the summary prospectus should be read carefully before investing.

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877.891.1222
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Investing involves risk. Principal loss is possible. Past performance is no guarantee of future results. There are no guarantee that an investment strategy or diversification will generate a profit or prevent a loss.

This website is for informational purposes only and should not be construed as a solicitation to buy or sell, or to invest in any investment product or strategy. Investing in securities markets involves risk and the degree of risk varies by the type of investment or strategy. For a complete list of the risks associated with each of our Strategies, please review the Strategy Brochure and Factsheet. Materials such as blog posts, newsletters or commentary may contain information deemed to be correct and appropriate at a given time but may not reflect our current views or opinions due to changing market conditions. No information provided on this website should be viewed as, or used as a substitute for individualized investment advice.

Advisory services offered through Kensington Asset Management, LLC.

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