KHPI | Hedged Premium Income ETF - Kensington Asset Management

Objective

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

Why Invest

Attractive Income: The Fund seeks to provide compelling, managed income by combining option premium generation with equity dividend income.
Participation in Rising Markets: The Fund employs an option writing strategy designed to capture the upside potential of rising equity markets while only partially limiting gains, offering a more attractive profile compared to traditional derivative income strategies.
Downside Hedge: The Fund’s options hedging strategy is structured to reduce drawdowns during periods of market stress, helping investors remain invested and avoid emotional decision making.

Overview

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

01	S&P 500 Index Stay fully invested in Large Cap Equities via low-cost passive ETFs or Future
02	Buy Put Spreads Maintain quarterly market hedges at all times in seeking to protect capital from significant market declines
03	Sell Call Spreads Aims to generate positive premium income through conservative call spread writing

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Growth of $10,000

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Distributions are not guaranteed.

KHPI are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Total Returns are calculated using the daily 4:00pm EST net asset value (NAV). Market price returns reflect the midpoint of the bid/ask spread as of the close of tradingon the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times.

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

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.
Options Risk: Options give the holder the right, but not the obligation, to buy (call) or sell (put) an asset at a specified price. Investments in options are speculative and can result in the loss of the premium paid. Writing options exposes the writer to significant risks, including potential losses up to the exercise price for puts and unlimited losses for uncovered calls.
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.
Limited History of Operations Risk: Limited operational history makes it difficult for investors to evaluate its performance. Additionally, the Fund may struggle to attract enough assets to operate efficiently.

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 not 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.

Kensington Funds are distributed by Quasar Distributors, LLC. Kensington Asset Management, LLC is not affiliated with Quasar.

Neither MerQube, Inc. nor any of its affiliates (collectively, “MerQube”) is the issuer or producer of Kensington Hedged Premium Income ETF (“KHPI”) and MerQube has no duties, responsibilities, or obligations to investors in KHPI. The index underlying the Kensington Hedged Premium Income ETF is a product of MerQube and has been licensed for use by Kensington Asset Management. Such index is calculated using, among other things, market data or other information (“Input Data”) from one or more sources (each a “Data Provider”). MerQube® is a registered trademark of MerQube, Inc. These trademarks have been licensed for certain purposes by Kensington Asset Management in its capacity as the issuer of the KHPI. KHPI is not sponsored, endorsed, sold or promoted by MerQube, any Data Provider, or any other third party, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Input Data, MerQube Hedged Premium Income Index or any associated data.

How to Invest

KHPI is traded on major stock exchanges, much like shares of common stock. ETFs can be bought and sold throughout the trading day offering liquidity and ongoing valuations of the fund's holdings for investors. ETFs are typically tax-efficient and generally have lower cost than other investment alternatives, making them a great investment tool for investors. Trading can be executed through your financial advisor or an account with most brokerage firms. Commissions and transaction costs may vary so be sure to check on these costs.

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Hedged Premium Income ETF

Objective

Why Invest

Overview

Daily Change

Yields & Distributions

Key Facts

How to Invest

Quarterly Fact Sheet

Monthly Commentary