How Kirkland Capital Group Ensures Transparent and Accurate Monthly Investor Statements
To ensure accurate monthly account statements for investors in the Kirkland Income Fund, we carry out a monthly reconciliation process with our fund administrator. It involves more than just a few clicks on the keyboard. Let's take a closer look.
The fund administrator is an external service provider that manages the fund's accounting. To guarantee accuracy, we always conduct our own accounting in parallel. The reconciliation process involves the following:
The Fund Administrator calculates management fees, operating expenses, interest collected in a month, and investor capital accounts. They send us a complete accounting package usually in the first week of the following month.
We reconcile those numbers with our own accounting and calculations. If there are any differences, both parties supply calculations and supporting documents to ensure agreement to the same balances.
This process occurs in the first two weeks of the month with a goal to reconcile individual investor accounts and ensure distributions and statements go out to investors on or before the 15th of the month. This process is in place to ensure a separate third party is responsible for calculating and monitoring all transactions of the fund for every month. We, as the fund managers, ensure the Fund Administrator accounts for all investors' transactions in the best interest of the investors. If there is an exception to a rule, that it is in the best interest of both the fund and the investor. For example, most funds charge management fees on the full amount of committed capital from the investor. However, we only charge fees on deployed capital. As the manager of the fund, we must ensure the Fund Administrator is calculating based on deployed capital and not fully committed capital each month.
We hope this peek into the monthly reconciliation process gives you a better understanding of how we ensure accuracy and transparency in our fund operations and why investor statements take a bit of time to create. When you have questions about this process or any other topic related to the fund, please don’t hesitate to reach out.
