Kensington Asset Management Aims to Enhance the Derivative Income Space with Launch of First ETF: Kensington Hedged Premium Income (KHPI)

AUSTIN, Texas, Sept. 3, 2024 /PRNewswire/ — Kensington Asset Management, a pioneer in systematic investment strategies is thrilled to expand its lineup with the launch of its first ETF: Kensington Hedged Premium Income (KHPI), designed for income generation with a downside hedge.

With growing demand for yield, the derivative income category has surged, resulting in a number of strategies that follow a similar covered call approach – buy an index and sell a call option to generate potential premium income. While these strategies may provide meaningful income, they often sacrifice capital appreciation and offer little protection against significant market drawdowns.

The Kensington Hedged Premium Income ETF (KHPI) was designed to address these weaknesses. KHPI seeks to deliver high tax-advantaged monthly income without sacrificing the potential for capital appreciation. By incorporating the downside hedge that Kensington Asset Management is known for, it may offer investors a more balanced and resilient income strategy.

“We are incredibly excited to expand our product suite with the launch of the Kensington Hedged Premium Income ETF,” said Mark Engelbrecht, Managing Partner at Kensington Asset Management. “KHPI represents a significant addition to our lineup, and we believe it will offer investors a compelling option in today’s challenging income landscape.”

To mark this significant milestone, Kensington Asset Management, in partnership with Liquid Strategies, sub-advisor to KHPI, will be ringing the closing bell at CBOE Global Markets in Chicago on September 5, 2024.

About Kensington Asset Management: Kensington Asset Management, advisor to the Kensington Hedged Premium Income ETF (KHPI) specializes in active systematic strategies, built to navigate market volatility by providing innovative pathways to upside participation with a downside hedge.

About Liquid Strategies: Liquid Strategies, sub-advisor to the Kensington Hedged Premium Income ETF (KHPI) focuses on managing dynamic investment strategies designed to help investors achieve their investment goals with innovative investment solutions.

For more information about KHPI or to learn more about Kensington Asset Management, please visit www.kensingtonassetmanagement.com.

This press release is intended for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Please consult your financial advisor before making any investment decisions.

Investors should consider the investment objectives, risks, charges and expenses of the Kensington Hedged Premium Income ETF (KHPI) before investing. The Fund’s prospectus and summary prospectus contain this and other information about the Fund may be obtained by calling 1(866) 303-8623 / visiting www.kensingtonassetmanagement.com, which should be read carefully. There is no guarantee the Fund will achieve its investment objectives. Please read carefully.  There is no guarantee any investment strategy will generate a profit or prevent a loss.

Investing in Funds involves risk, including loss of principal. Risks specific to the Kensington Hedged Premium Income ETF are detailed in the prospectus and include Management Risk, Equity Risk, ETF Risks, Tax Risk, Market Risk, Underlying Funds Risk, Derivative Risk (Futures Contract, Swap Agreement, Options), Short Sale Risk, Leverage Risk, Limited History of Operations Risk, Non-Diversification Risk, and Turnover Risk.  

Options Risk: An option gives the holder the right, but not the obligation, to buy (call) or sell (put) an asset at a specified price. Options are speculative. The Fund may lose the premium paid if the underlying asset’s price doesn’t move favorably. Writing put options risks declines in the asset’s value, while writing call options may require delivering the asset below market price. Uncovered call options carry the risk of unlimited loss.

Advisory services offered through Kensington Asset Management, LLC.

Quasar Distributors, LLC, Distributor, Member FINRA/SIPC not affiliated with Kensington Asset Management, LLC or Liquid Strategies, LLC.  

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SOURCE Kensington Asset Management, LLC