The Kensington Credit Opportunities ETF has surpassed $100 million in assets slightly more than six months after its launch. The actively managed fixed-income fund trades under the ticker KAMO and invests across U.S. high-yield bonds, investment-grade credit and U.S. Treasury securities.
Kensington Asset Management adjusts the portfolio’s allocation among those markets based on its quantitative investment process and changing credit conditions.
The strategy seeks income and total-return opportunities while managing risks associated with interest rates and corporate credit.
Unlike a traditional bond index fund with relatively fixed allocations, KAMO can shift between riskier corporate debt, higher-quality bonds and government securities as market conditions change.
High-yield bonds generally offer higher income because their issuers have lower credit ratings and greater risk of default.
Investment-grade bonds typically provide lower yields but are issued by companies considered more likely to meet their obligations. U.S. Treasuries are backed by the federal government and can provide a more defensive allocation during periods of market stress.
Kensington said the fund’s early growth reflects financial advisers’ increasing interest in tactical fixed-income strategies as interest-rate volatility and changing credit conditions complicate conventional bond allocations.
The company plans to commemorate the milestone by ringing the closing bell at Cboe Global Markets in September.
The event will take place two years after Kensington marked the launch of its first exchange-traded fund, the Kensington Hedged Premium Income ETF.
KAMO remains subject to investment risks, including the possible loss of principal. Its ability to produce income or investment gains is not guaranteed.
KEY QUOTES:
“Reaching $100 million in assets in such a short period is a meaningful milestone and reflects the growing demand for active fixed income strategies that can seek opportunity while managing risk.”
Jason Sim, Portfolio Manager at Kensington Asset Management
“Seeing KAMO reach this milestone is a testament to the dedication of our investment team and the work they’ve put into building a thoughtful fixed income strategy.”
Mark Engelbrecht, Managing Partner at Kensington Asset Management
