Kensington Active Advantage Fund Institutional Class Shares (KADIX)

Overview

The fund described seeks to generate returns through a strategically balanced investment approach, targeting a mix of equity and fixed income holdings. Its strategy emphasizes flexibility within the asset allocation, focusing primarily on equities while incorporating a significant portion of fixed income investments to achieve a diversified portfolio. The fund's equity exposure is obtained through a combination of mutual funds and ETFs that mirror broad-based U.S. equity market indices, individual equity securities, and equity index futures. This mixture allows the fund to adapt to market changes and align with its investment objectives. The allocation strategy, planning to invest approximately 50–70% in equity securities and 30–50% in fixed income instruments, underscores the fund's intention to balance growth potential through equities with the income generation and risk mitigation offered by fixed income securities. This non-diversified fund is managed with a focus on achieving its investment goals through strategic asset allocation and selection of investments that best represent the U.S. market dynamics.

Products and Services

• Mutual Funds and Exchange-Traded Funds (ETFs)

The fund invests in other mutual funds and ETFs that track the performance of a broad-based U.S. equity market index. This allows the fund to gain exposure to the U.S. stock market in a diversified manner, leveraging the expertise of other fund managers and the efficiency of ETFs in tracking market indices.

• Individual Equity Securities

Investing in individual equity securities is another strategy employed by the fund to achieve its equity exposure. This method provides the opportunity to select stocks with the potential for high returns, capitalizing on the growth of specific companies within the diverse U.S. market landscape.

• Equity Index Futures

The fund also utilizes equity index futures as part of its investment strategy. This financial derivative is used to hedge against market volatility and to gain exposure to equity markets without directly holding stocks. This approach offers flexibility and the potential for profit in both rising and declining markets.

• Fixed Income Instruments

Allocating 30-50% of its portfolio to fixed income instruments, the fund aims to balance its growth-seeking equity investments with more stable, income-generating assets. This strategic blend seeks to lower overall portfolio risk while still allowing for capital appreciation and income production.