Kensington Managed Income Fund Institutional Class (KAMIX)

Overview

The fund operates within the investment sector, focusing on generating income through a variety of fixed-income securities. It aims to achieve this by primarily investing in a mix of other mutual funds and ETFs that are directed towards higher-yielding, income-producing securities, alongside individual bonds, including those categorized as high-yield. Additionally, the fund engages in derivative instruments like credit default swaps and index swaps, as well as futures related to indexes and bonds. It is important to note that this fund is non-diversified, meaning it may invest a larger proportion of its assets in fewer issuers than a diversified fund.

Products and Services

The fund offers a range of investment products and services designed to provide investors with exposure to fixed-income securities, each with specific characteristics and strategies:

• Other mutual funds and exchange-traded funds (ETFs): These are underlying funds that the main fund invests in, which in turn, invest in high-yielding, income-producing securities. This allows investors to benefit from diversified exposures through a single investment in the fund.
• Individual bonds, including high-yield bonds: By investing in individual bonds, including those considered to be high-yield or "junk" bonds, the fund aims to enhance its income generation capabilities. High-yield bonds typically offer higher interest rates in return for taking on a higher risk of default.
• Credit default swaps and credit default index swaps: These are types of derivatives that the fund may use to speculate on or hedge against the default risk of a corporation or sovereign entity. Credit default swaps allow the fund to manage its exposure to credit risk, while index swaps provide exposure to a broad market segment.
• Index futures and bond futures: The fund may utilize futures contracts on indexes and bonds to achieve its investment objectives. These derivatives are used for hedging risks associated with interest rate movements or to gain exposure to certain segments of the bond market without having to directly purchase the underlying securities.