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KYCO: Know Your Company

Reveal Profile

19 December 2025

1) Overview of the Company

Kensington Asset Management, LLC is a Securities and Exchange Commission registered investment advisor headquartered in Austin, Texas, specializing in tactical, process-driven asset management strategies designed to navigate market volatility through systematic approaches to upside participation and downside protection. The firm was founded by Bruce P. DeLaurentis and has operated for over 40 years across multiple market cycles, establishing itself as a pioneer of systematic investment methodologies with a focus on outcome-optimized investing.

The company manages approximately $1.9 billion in discretionary assets under management as of August 2025, serving institutional and retail clients through five core investment strategies: Dynamic Allocation Strategy, Managed Income Strategy, Active Advantage Strategy, Defender Strategy, and Hedged Premium Income Strategy. These strategies employ proprietary quantitative models and data-driven decision-making processes to tactically allocate across equities, fixed income, cash equivalents, and alternative investments based on market conditions.

Kensington’s investment approach centers on risk-managed tactical allocation, alternating between “Risk-On” and “Risk-Off” positioning depending on market volatility and trend analysis. The firm’s strategies are designed to provide lower correlation with traditional benchmarks while seeking to enhance portfolio diversification and improve risk-adjusted returns across varying market cycles. The company operates with 11-50 employees and maintains offices in Austin, Texas, with operations that span mutual funds, exchange-traded funds, and separately managed accounts.

The firm received SEC registration approval on August 14, 2020, and maintains notice filings in Puerto Rico and Texas as of January 2024. Kensington’s strategies have received third-party recognition, including multiple Zephyr PSN Top Gun Awards for the Dynamic Allocation Strategy and Silver Status recognition from SmartX Advisory Solutions. The company distributes its investment products through partnerships with Quasar Distributors, LLC and operates on various turnkey asset management platforms.

2) History

Kensington Asset Management, LLC was founded by Bruce P. DeLaurentis and has operated for over 40 years across multiple market cycles, establishing itself as a pioneer of systematic investment methodologies with a focus on outcome-optimized investing. The firm’s formative trading experience shaped its investment philosophy, which has been enhanced over decades by the skills and expertise of its asset management and operational teams.

The company received SEC registration approval on August 14, 2020, marking a significant regulatory milestone in its evolution as a registered investment advisor. Throughout its operational history, Kensington has developed and refined its proprietary decision models while intelligently expanding its service set to create both core and complementary portfolio pathways to resilient, risk-adjusted returns.

The firm has launched multiple strategic products over its history, including the Managed Income Strategy with its 30-year track record of providing compelling risk-adjusted returns in varying cycles. The company subsequently introduced the Dynamic Allocation Strategy, Active Advantage Strategy, and Defender Strategy, each designed to address specific market conditions and investor needs through tactical allocation methodologies.

In 2022, Kensington executed significant fund reorganizations involving the Kensington Managed Income Fund and Kensington Dynamic Growth Fund, which were reorganized from Advisors Preferred Trust into Managed Portfolio Series on May 20, 2022. The reorganizations were approved by the Target Fund Board on December 15, 2021, and were structured as tax-free transactions under the Internal Revenue Code.

The firm has maintained notice filings in Puerto Rico and Texas as of January 2024, reflecting its regulatory compliance and operational scope. Throughout its history, Kensington has demonstrated a commitment to data-driven, tactical investment solutions across equity and fixed income markets, with strategies that have received third-party recognition including multiple awards from industry organizations.

3) Key Executives

Steven Chang serves as Managing Director and Chief Compliance Officer at Kensington Asset Management, LLC, appointed to the role in January 2024. Chang brings over 18 years of compliance leadership experience within the asset management and wealth management industries, having most recently served as Chief Compliance Officer at Steward Partners Investment Solutions, the broker-dealer at Steward Partners Global Advisory, a $32 billion independent financial services firm. Prior to his tenure with Steward Partners, Chang held key compliance positions in both private and public sectors, including roles at Umpqua Bank, the Oregon State Treasury, Mass Mutual and other investment firms. Chang holds a Bachelor of Science degree in finance from Oregon State University and maintains registrations as a Registered Principal for General Securities, Municipal Securities, and Investment Banking.

Bruce P. DeLaurentis serves as Founder and Portfolio Manager and is a member of the Investment Committee, responsible for developing and implementing the firm’s proprietary quantitative decision models across equity and fixed-income markets. With over 50 years of experience in the financial industry, DeLaurentis began his career in 1969 as an active trader and later became a registered representative, founding Kensington in 1984. He is a founding member of The National Association of Active Investment Managers and earned his bachelor’s degree in Economics from Hofstra University. A former U.S. Army Chief Warrant Officer, he served as a helicopter pilot including a tour in Vietnam, and later as an instructor pilot, holding a Series 65 license.

Mark Engelbrecht serves as Managing Partner, leading national distribution initiatives across intermediaries and is a member of the Executive Committee which guides and executes the firm’s strategic direction and initiatives. With close to 30 years of experience in the financial services industry, Engelbrecht actively leads and shares the firm’s vision, mission and investment management strategies across the country. He earned his bachelor’s degree in business administration from the University of North Texas and maintains commitments to the University as a member of the Dean’s Circle of Excellence and the University’s President’s Council.

Valerie Arroyos serves as Managing Director and Chief Operating Officer, primarily responsible for enterprise operations, human resources, project management and marketing, and is a member of the Executive Committee. With over 18 years of experience in financial services, Arroyos’ career spans across insurance, banking and investment firms where she has held various positions of increased responsibility and management in sales, sales support, marketing, accounting, compliance, legal, human resources, customer service, project management, national accounts, IT and business intelligence. She earned her bachelor’s degree in Sociology with a minor in Business from The University of Texas at Austin.

Brian Weisenberger, CFA serves as Managing Director and Chief Market Strategist, working closely with the Portfolio Management teams in establishing the firm’s market outlook and direction and is a member of the Executive Committee. Weisenberger has over 20 years of experience in the financial services industry, having previously held roles in portfolio management, due diligence and investment research for various wealth management organizations, including broker/dealers, registered investment advisors and a national chartered trust company. He earned his bachelor’s degree in Economics from The University of Texas at Austin and is a CFA Charterholder.

Mano Fanopoulos serves as Managing Partner, primarily responsible for distribution and is a member of the Executive Committee which serves to guide and execute the firm’s strategic direction and initiatives. Fanopoulos has over 20 years of experience in the financial services industry, with leadership roles at financial services firms, introducing both traditional as well as alternative asset classes such as managed futures, real estate and venture capital. He earned his bachelor’s degree in business administration from The University of Rhode Island.

William Bower serves as Managing Director, ensuring seamless integration and efficiency across the firm and is a member of the Executive Committee which serves to guide and execute the firm’s strategic direction and initiatives. With nearly a decade of experience in the financial services industry, Bower has honed his expertise in capital markets while working for private equity firms, REITs, and individual companies. William serves on the board at The Leuthold Group, a firm renowned for its pioneering investment research and tactical asset allocation, and lends his expertise as a Director at ForDuckSake, a 501c(3) dedicated to rescuing, rehabilitating, and educating communities about the welfare of domestic ducks and geese.

4) Ownership

Kensington Asset Management, LLC operates as a limited liability company with a concentrated ownership structure centered around its founding leadership team. The firm was founded by Bruce P. DeLaurentis, who continues to serve as the Founder and Portfolio Manager and maintains ownership interests in the company. The current ownership structure reflects the firm’s evolution from a single founder-led organization to a management-owned entity with multiple stakeholders.

The company’s Form ADV filings indicate that Kensington Asset Management serves as the investment advisor to multiple funds while maintaining its independent status as a registered investment advisor since August 14, 2020. The firm operates through a management structure where key executives hold both operational responsibilities and ownership stakes, aligning their interests with the long-term success of the organization.

Kensington Asset Management maintains operational independence while collaborating with distribution partners, including Quasar Distributors, LLC for fund distribution services, though these relationships do not involve equity ownership. The firm’s organizational structure supports its role as the adviser to the Kensington Managed Income Fund, Kensington Dynamic Growth Fund, Kensington Active Advantage Fund, Kensington Defender Fund, and Kensington Hedged Premium Income ETF.

The company operates with significant operational autonomy in its investment management decisions and strategic direction, with ownership concentrated among the management team that has guided the firm’s growth from its founding through its current status as a registered investment advisor managing approximately $1.9 billion in assets under management. This ownership structure has supported the firm’s expansion across multiple investment strategies while maintaining its focus on tactical, risk-managed asset management approaches.

The firm’s ownership arrangements have enabled it to maintain its independent advisory status while building strategic partnerships for fund administration and distribution, allowing the management team to focus on investment strategy development and client service delivery. The concentrated ownership structure reflects the firm’s commitment to maintaining alignment between ownership interests and investment management responsibilities across its growing suite of strategies.

5) Financial Position

Kensington Asset Management, LLC operates as a privately held registered investment advisor, requiring assessment of its financial health through indirect valuation indicators and operational proxy signals rather than traditional public financial metrics. As a private firm managing approximately $1.9 billion in discretionary assets under management as of August 2025, the company demonstrates substantial operational scale and growth trajectory since receiving SEC registration approval on August 14, 2020.

The firm’s assets under management have shown significant expansion, growing from managing multiple fund strategies to a diversified platform encompassing five core investment strategies across mutual funds and exchange-traded funds. The Kensington Dynamic Allocation Fund alone has exceeded $1.2 billion in assets under management as of October 31, 2025, representing a substantial portion of the firm’s total AUM and indicating strong investor demand for the company’s systematic investment approaches. This concentrated asset growth in a flagship strategy demonstrates both market acceptance and revenue generation capacity for the firm’s proprietary quantitative models.

Operational health indicators suggest strong business momentum, with the company achieving multiple third-party recognitions including a 5-Star Overall Morningstar Rating for the Dynamic Allocation Fund and consistent placement on Zephyr PSN Top Gun Awards lists. The firm’s ability to attract and retain institutional and retail clients across multiple distribution channels, including partnerships with Quasar Distributors, LLC, indicates sustainable revenue streams and market positioning strength.

The company’s operational footprint has expanded strategically, maintaining its Austin, Texas headquarters while building a management team of 11-50 employees across investment management, compliance, and distribution functions. Key executive appointments, including Steven Chang as Chief Compliance Officer in January 2024, reflect the firm’s investment in regulatory infrastructure and operational capabilities to support continued growth.

Financial stability appears robust based on the firm’s ability to maintain and expand its product suite, including the recent launch of the Hedged Premium Income ETF in September 2024, which has grown to approximately $247 million in net assets. The diversification across mutual funds and ETFs provides multiple fee generation sources and reduces concentration risk in any single product category. The firm’s expense structure includes management fees ranging from 0.96% to 1.25% across different strategies, indicating competitive pricing within the tactical allocation and alternative strategy categories.

6) Market Position

Kensington Asset Management, LLC operates within the competitive landscape of tactical asset management firms specializing in systematic investment strategies. The firm has established a distinctive market position through its focus on risk-managed approaches that seek to navigate market volatility while providing downside protection across equity and fixed income markets. As a registered investment advisor managing approximately $1.9 billion in discretionary assets under management as of August 2025, Kensington competes primarily in the alternative investment strategy and tactical allocation segments.

The company’s market positioning centers on its proprietary quantitative decision models that enable tactical shifts between “Risk-On” and “Risk-Off” states based on market conditions. This systematic approach differentiates Kensington from traditional buy-and-hold asset managers by emphasizing adaptive allocation strategies designed to participate in rising markets while seeking to avoid exposure during periods of decline or volatility. The firm’s specialization in outcome-optimized investing positions it as a pioneer in systematic investment methodologies with over 40 years of operational experience across multiple market cycles.

Kensington’s competitive advantages include its lengthy operating history and seasoned investment team, with founder Bruce P. DeLaurentis bringing over 50 years of financial industry experience since beginning his career in 1969. The firm’s strategies have received significant third-party recognition, including a 5-Star Overall Morningstar Rating for the Dynamic Allocation Fund and consecutive placement on the Zephyr PSN Top Gun Awards list for three quarters in 2025. These accolades provide credibility and market validation for the firm’s systematic approaches in an increasingly crowded tactical allocation market.

The firm operates across multiple distribution channels, including partnerships with Quasar Distributors, LLC for fund distribution services and availability on various turnkey asset management platforms. This multi-channel approach enables Kensington to reach both institutional and retail clients through financial advisors and select platforms, expanding its market reach beyond direct client relationships. The company’s product suite spans mutual funds and exchange-traded funds, providing flexibility for different investor preferences and platform requirements.

Customer concentration analysis reveals that Kensington serves investment companies as its primary client type, with 100% of its assets under management attributed to this category according to its Form ADV filing. This concentration in investment companies suggests the firm’s strategies are primarily accessed through fund structures rather than separately managed accounts, which aligns with its mutual fund and ETF product distribution model. The firm maintains operations across multiple states, with notice filings in Puerto Rico and Texas as of January 2024, indicating geographic expansion capabilities.

Within the tactical allocation category, Kensington’s Dynamic Allocation Strategy has achieved notable market recognition, earning placement in the top 1% for one-year performance in Morningstar’s Tactical Allocation Category among 242 funds. This performance positioning demonstrates the firm’s ability to compete effectively against larger asset management companies in generating risk-adjusted returns. The strategy’s $1.2 billion in assets under management as of October 2025 represents significant scale within the tactical allocation universe.

7) Legal Claims and Actions

Based on available regulatory and legal records, no significant legal claims, regulatory enforcement actions, or disciplinary proceedings have been identified against Kensington Asset Management, LLC or its subsidiaries during the ten-year review period ending December 2025. The firm’s SEC registration status remains in good standing since receiving approval on August 14, 2020, with no reported enforcement actions by the Securities and Exchange Commission.

The company’s Form ADV filings indicate no disclosure items requiring reporting under regulatory requirements for legal or disciplinary events involving the firm or its key personnel. This includes the absence of criminal charges, regulatory sanctions, civil litigation matters, or compliance violations that would require disclosure to clients and regulatory authorities under investment advisor regulations.

Kensington Asset Management maintains active notice filings in Puerto Rico and Texas as of January 2024, with no reported compliance issues or disciplinary actions in these jurisdictions. The firm’s regulatory compliance record appears clean across all jurisdictions where it maintains registrations or notice filings, indicating adherence to applicable state and federal investment advisor regulations.

Employment litigation searches reveal no public records of discrimination, retaliation, or other workplace-related legal proceedings involving Kensington Asset Management, LLC or its subsidiaries. The absence of employment-related litigation suggests effective human resources management and compliance with federal and state employment laws across the firm’s operations.

Anti-money laundering and sanctions compliance reviews show no public enforcement actions or violations involving the firm or its personnel. The company’s investment advisor registration and ongoing regulatory compliance requirements include adherence to Bank Secrecy Act provisions and OFAC sanctions regulations, with no reported violations during the review period.

8) Recent Media

Media coverage of Kensington Asset Management, LLC between 2023 and 2025 has been consistently positive, focusing on asset growth, product launches, and industry awards, with no adverse media or reports of misconduct identified. In December 2025, the firm announced the launch of the Kensington Credit Opportunities ETF (Ticker: KAMO), an actively managed fund designed to invest across the credit spectrum, including high-yield bonds, investment-grade corporate debt, and securitized assets. This new product expands the firm’s ETF lineup and leverages its existing quantitative investment processes.

In November 2025, Kensington announced that its Dynamic Allocation Fund (KAGIX) had surpassed $1.2 billion in assets under management upon its five-year anniversary. Concurrently, the fund received a 5-Star Overall Morningstar Rating as of October 31, 2025, within the Tactical Allocation category of 223 funds, and was ranked in the top 1% for one-year performance among 242 funds in the same category. Also in November 2025, the firm’s Dynamic Allocation Strategy was named to Zephyr’s PSN Top Guns List for its Q3 2025 performance, marking the third consecutive quarter the strategy received this distinction. The strategy was recognized across five categories for its quarterly and one-year returns.

Earlier in 2025, the firm was recognized on the PSN Top Guns List for the Dynamic Allocation Strategy’s performance in both Q2 2025 and Q1 2025. In September 2025, the Kensington Hedged Premium Income ETF (KHPI) celebrated its one-year anniversary, having accumulated $175 million in assets under management since its launch in September 2024. The firm reported that the ETF had reached a prior milestone of $100 million in assets under management as of March 7, 2025, citing growing adoption through expanded agreements with broker-dealers and turnkey asset management platforms (TAMPs).

In tandem with its product growth, Kensington’s distribution arm, Kensington Investment Distributors, announced in September 2024 that it had rebranded to Xtollo Investment Partners. Xtollo confirmed it would continue its collaboration with Kensington Asset Management and also announced a new partnership to distribute products for The Leuthold Group, an investment research and asset management firm. Throughout 2024, the firm made key personnel announcements, including the appointment of Steven Chang as Chief Compliance Officer in January 2024 and the promotion of Reid McDermott to Director of Capital Markets the same month. In December 2023, the Kensington Dynamic Growth Fund (KAGIX) was awarded a 5-Star rating for its Overall and 3-Year performance in Morningstar’s Tactical Allocation category, based on risk-adjusted returns as of November 30, 2023.

9) Strengths

Experienced Leadership Team

Kensington Asset Management benefits from seasoned leadership with extensive industry experience across multiple market cycles. Founder Bruce P. DeLaurentis brings over 50 years of financial industry experience, having begun his career in 1969 and founded Kensington in 1984. The management team includes specialized expertise across key functions, with Chief Compliance Officer Steven Chang contributing over 20 years of compliance experience in asset management and wealth management. Managing Director Brian Weisenberger, CFA, provides over 20 years of financial services experience with specialized expertise in portfolio management and investment research. This experienced leadership foundation provides institutional knowledge and market perspective essential for navigating complex investment environments.

Specialized Focus on Tactical Asset Management

The firm has established a distinctive market position through its specialized focus on systematic, risk-managed investment strategies that differentiate it from traditional buy-and-hold approaches. Kensington’s proprietary quantitative decision models enable tactical shifts between “Risk-On” and “Risk-Off” states based on market conditions, providing adaptive allocation strategies designed to participate in rising markets while seeking to avoid exposure during periods of decline or volatility. This specialization in outcome-optimized investing positions the firm as a pioneer in systematic investment methodologies with over 40 years of operational experience.

Lengthy Operating History

Kensington demonstrates operational stability and market resilience through its extensive operating history spanning over 40 years across multiple market cycles. The firm’s formative trading experience has been enhanced over decades by the skills and expertise of its asset management and operational teams, creating a foundation of institutional knowledge. This extended operational track record includes development and refinement of proprietary decision models while intelligently expanding its service set to create both core and complementary portfolio pathways to resilient, risk-adjusted returns.

Strong Third-Party Recognition and Performance Validation

The firm has received significant industry recognition validating its investment approach and performance capabilities. The Dynamic Allocation Fund earned a 5-Star Overall Morningstar Rating and was ranked in the top 1% for one-year performance among 242 funds in the Tactical Allocation category as of October 2025. The Dynamic Allocation Strategy has been named to Zephyr PSN Top Gun Awards for three consecutive quarters in 2025, recognizing top-performing strategies based on quarterly and annualized returns. Additional recognition includes Silver Status from SmartX Advisory Solutions and multiple awards across different performance categories.

Diversified Product Platform and Distribution Capabilities

Kensington has built a comprehensive investment platform encompassing five core strategies across mutual funds and exchange-traded funds, providing flexibility for different investor preferences and platform requirements. The firm operates across multiple distribution channels, including partnerships with Quasar Distributors, LLC for fund distribution services and availability on various turnkey asset management platforms. This multi-channel approach enables the firm to reach both institutional and retail clients through financial advisors and select platforms, expanding market reach beyond direct client relationships.

Robust Asset Growth and Scale

The firm manages approximately $1.9 billion in discretionary assets under management as of August 2025, demonstrating substantial operational scale and growth trajectory since receiving SEC registration approval on August 14, 2020. The Dynamic Allocation Fund alone has exceeded $1.2 billion in assets under management as of October 2025, representing significant scale within the tactical allocation universe and indicating strong investor demand for the firm’s systematic investment approaches. This asset growth trajectory reflects market validation of the firm’s investment methodologies and operational capabilities.

10) Potential Risk Areas for Further Diligence

Models and Data Risk

Kensington Asset Management’s investment strategies rely heavily on proprietary quantitative models and third-party data sources for decision-making processes. The firm’s systematic approach creates significant operational vulnerability, as incorrect or incomplete models and data can lead to suboptimal investment decisions and potential losses. The Managed Income Model uses specific daily inputs including returns of certain U.S. high-yield bond funds, long-term U.S. Treasury bonds, NASDAQ Composite Index levels, Value Line Geometric Composite Index levels, and NYSE Advance/Decline Line data. Any disruption to these data sources or flaws in the underlying models could materially impact portfolio performance and expose investors to unexpected risks during unprecedented market conditions.

Performance Sensitivity and Whipsaw Trading Risk

The firm’s tactical allocation strategies demonstrated vulnerability to “whipsaw” trading during 2024, with the Dynamic Growth Strategy experiencing challenges where third-quarter performance erased much of the year’s return potential due to false signals during periods of heightened volatility. The strategy oscillated between “Risk-On” and “Risk-Off” positions during sharp market swings, resulting in defensive moves that avoided significant losses but also missed rebounds. This performance variability highlights inherent risks in tactical approaches that may miss market movements or generate false signals during unusual market conditions, potentially undermining the strategy’s effectiveness during critical periods.

Key Person Dependency and Succession Planning

Bruce P. DeLaurentis represents a significant key person risk as founder and portfolio manager with over 50 years of experience spanning the firm’s 40-year history. His extensive institutional knowledge in developing proprietary investment methodologies and founding member status in The National Association of Active Investment Managers creates potential succession challenges. While the firm has appointed Steven Chang as Chief Compliance Officer in January 2024 and expanded its management team with experienced professionals, the concentration of foundational knowledge and decision-making authority in the founder requires careful succession planning to ensure business continuity and preservation of institutional investment processes.

Client Concentration and Business Model Risk

The firm exhibits significant client concentration risk with 100% of its assets under management attributed to investment companies according to Form ADV filings. This concentrated client structure in fund vehicles rather than separately managed accounts creates potential vulnerability to regulatory changes affecting mutual fund and ETF operations, as well as exposure to broader industry trends impacting investment company demand. The lack of diversification across individual clients, institutions, and other client types represents a business model concentration that could impact revenue stability if investment company regulations or market preferences shift unfavorably.

Fee Structure and Competitive Positioning Risk

Kensington Asset Management received a “Below Average” Parent Pillar rating from Morningstar Manager Research, with fees on the firm’s open-end and exchange-traded funds identified as a weakness. Charges average in the second most-expensive quintile of similarly distributed funds, creating a larger performance hurdle and potential competitive disadvantage in the current market environment of fee compression. Management fees ranging from 0.96% to 1.25% across different strategies, combined with additional acquired fund fees and expenses, may challenge competitiveness against lower-cost alternatives or passive index strategies as investors increasingly migrate to better value propositions.

Regulatory Compliance and Fiduciary Risk Evolution

While the firm maintains clean regulatory records, the investment advisory industry faces evolving compliance requirements and heightened scrutiny of fiduciary responsibilities. The firm’s Code of Ethics includes comprehensive policies for managing conflicts of interest, personal trading, and gifts and gratuities, but regulatory changes affecting investment advisors could impact operations and costs. Recent appointment of Steven Chang as Chief Compliance Officer suggests ongoing attention to compliance infrastructure, but regulatory evolution around fee disclosure, conflict management, and fiduciary standards remains an ongoing risk factor requiring continuous investment in compliance capabilities.

Limited Geographic and Regulatory Diversification

Kensington maintains operational concentration with headquarters in Austin, Texas and notice filings limited to Puerto Rico and Texas as of January 2024. This geographic concentration may limit growth opportunities and expose the firm to regional economic conditions or state-specific regulatory changes that could impact operations or client acquisition capabilities. The firm’s domestic focus, while reducing international compliance complexity, may also limit access to global investment opportunities and international client bases that could provide portfolio diversification and revenue growth potential.

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