Is your bond portfolio protected against higher interest rates?

Why A Tactical Approach to Fixed Income Investing Out-performs Treasury and corporate bonds have received substantial press recently. Currently, large short positions exist in the treasury bond market. Some indicators are calling for a possible short squeeze which may catch many investors off guard. (See chart below) There is a record net short position in […]

As of this writing the Dow Jones Industrial Average has retraced over 10% in just 7 trading sessions. It seems like we’ve seen this movie before!! How quickly we forget how capital preservation is just as important as capital appreciation. It is with that information we have felt compelled to repeat some points from an update […]

The High Yield and Corporate fixed income markets performed pretty much as expected from our point of view following a double digit percentage return in 2016. Kensington’s three strategies performed in line with expectations net of fees as follows:  The effective yield of the asset class was approximately 6% at the start of 2017 and […]

There is an old adage, ‘bulls make money, bears make money, pigs get slaughtered’. How does one know when to take profits or reallocate defensively after a significant market move? Investors forget that the bigger the investment loss, the greater the gain required to recoup that loss and/or breakeven. There are certain metrics which some […]

Strategic Corporate Income Strategy      +0.24% (MTD)    +4.52% (YTD) Tactical High Yield Strategy                     +0.26% (MTD)     +5.62% (YTD) Tactical Equity Income                              +0.95% (MTD)     +8.06% (YTD) Kensington Wealth Advisors Monthly Commentary The US high yield remains ‘rich’, as judged by the current tight spreads, historically, this can be maintained for several years. The media […]

All Kensington Wealth Management programs posted positive performances for the month of September.  With a strategy deriving much of our gains from long exposure to the corporate market with coverage in treasury type instruments and cash in defensive markets, we thought a brief interest rate update is warranted. Interest Rate Update Rates continue to flip-flop […]

Kensington Wealth Advisors August Re-Cap Recap: The stock market has been making record highs and government bond yields have moved lower from their peaks earlier this year. Typically, bond rates climb when growth is improving and inflation begins to accelerate.  The Fed this year has raised short-term interest rates which usually follows an increase in […]

Kensington Wealth Advisors has a unique edge; For over 25 years, we have exploited the Low Volatility Anomaly and the Momentum Anomaly, which has been a successful repeatable process for our clients.  The month of July resulted in solid gains for our strategy. We have expanded the information on the Low Volatility Anomaly for your […]

Understanding what the underlying positions are in your bond portfolio and how those positions are being managed is even more important than ever now that bond yields are beginning to bounce off historic lows. Let’s first take a look at passive investing. Bond mutual funds have been experiencing net outflows in the traditional fixed income […]

The market for both high-yield bonds and equities continues to surprise most observers by holding up in the face of a constant onslaught of negative news from the mainstream media. Fortunately, our disciplined decision-making process has enabled us to filter out these influences. For the time, our models continue to be constructive and have us […]

Over the last 30 years corporate high-yield bonds have nearly matched equity performance with a fraction of the volatility.   Since 1983, stocks have yielded an annualized return of approximately 10.9 percent (Display 1). Corporate high-yields have nearly equaled that performance, with a 9.5 percent return over a period spanning two full market cycles and […]

For the month ending March 2017 the Kensington Wealth Advisors Strategic Corporate Income Strategy returned a gross return of +.03% and a net return of -0.14% which brings the YTD to +1.92%. In last month’s commentary, we suggested that the equity market was up against a resistance point that could cause some hesitation or even […]

Kensington wanted to share this independently written article with you as we believe this is an area which has been overlooked for many years. An area where one can target lower volatility and consistent returns if utilizing the correct discipline. Global markets have been historically tumultuous over the last several years as the Great Recession […]

Today’s investor is faced with an overwhelming dilemma. Fixed income has been the predominant asset class that has driven investor returns throughout this 8-year old bull market, notwithstanding the extraordinary climb by the S&P 500 Index to 3½ times its March 2009 low. Market sentiment toward equities has been very skeptical for the most part, […]

‘There is no free lunch’, this is something which I have learned during my 30 plus years of managing alternative portfolios. Over the years, our team has lived through many differing market environments and that has taught us one important lesson, to always expect the unexpected! This is why we have employed a unique strategy […]

Kensington’s Strategic Corporate Income Strategy is off to a good start for the year. January’s gain, before fees, was +1.01%, or +.84% net after fees. Many investors have been caught off guard by the strength in the markets, given the volatile political climate since the election. Although it is too early to tell, President Trump’s […]

January 2017 Commentary

Although our stance has been somewhat cautionary for the past few weeks, a buy signal from Kensington’s Income Model prompted us to get invested during the 2nd week of December. The buy signal proved timely, as bonds have resumed their advance, following a mild pullback into mid-November, albeit at a somewhat subdued pace compared to […]

November 2016 Commentary

Well it’s now history that the underdog Donald Trump has surprised the world with his Presidential victory. Along with his victory has come an immediate rise in interest rates in the 10-year treasury which we have seen spike from 1.83% to just above 2.3% in a short period. Unlike the treasury market which reacts directly […]

Hanging In the Balance

As always thank you for your loyalty and trust in our strategy as we move through our 25th year of protecting capital for investors. October handed us our first down month since January of 2016 off slightly at -1.35%. YTD we are at +6.79% net beating the S&P along with most fixed income instruments who […]