Liquid Investments such as money market securities are valued at their quoted market price at the close of trading on the last trading day prior to the NAV Date. The Fund may use the original cost plus accrued interest as an approximation of market value for very short term liquid investments.
The Fund holds investments in various currencies and reports the NAV in Canadian dollars. In determining the NAV, Kensington uses the noon exchange rate quoted by the Bank of Canada on the last trading day prior to the NAV Date to determine the appropriate conversion rate.
Fees and expenses of the Fund that are known annual expenses (such as the cost of the Fund’s audit or a fixed management fee paid to an underlying private equity fund manager) are amortized or accrued through the calendar year, even though such fees and expenses may be paid quarterly or annually. The appropriate portion of such fees is deducted from the value of underlying investments in determining the NAV on each NAV Date. Fees and expenses that are not subject to such amortization are expensed as soon as they are incurred and deducted from the NAV on the next NAV Date.
The guidelines set out above establish a NAV for the Fund as a whole. This total is divided by the number of Units outstanding on the NAV Date to determine the NAV per Unit. The various classes of Units of the Fund carry different annual Management Fees and Performance Fees. The applicable Fees are deducted only from the relevant class of Units, with annual Management Fees being amortized through the year. In particular, the Service Fee payable to Investment Advisors whose clients hold Class A Units or Class E Units of the Fund is amortized and deducted from the value of such Units but not deducted from the value of the Class F Units or Class G Units, where no such fees are payable.
If Kensington were to discover any errors in the calculation of the NAV, these errors would be corrected on the next NAV Date occurring after Kensington learns of the error. Kensington would not restate the prior NAV to reflect the corrected information.
Kensington generally intends to apply this Valuation Policy to the calculation of the NAV on each NAV Date. However, as Manager of the Fund, Kensington reserves the right to amend this Valuation Policy from time to time in its sole discretion. Kensington may amend this Valuation Policy in response to new circumstances that may arise which were not contemplated when this Valuation Policy was established.
The Kensington Private Equity Fund is the successor to the Kensington Global Private Equity Fund, and was formed to acquire the entire investment portfolio in an internal reorganization completed on September 17, 2014. While these are different legal entities, each is a mutual fund trust with the same investment strategy executed by the same management team. Information on this website is therefore presented on a continuous basis from the formation of the Kensington Global Private Equity Fund in April 2007 through the reorganization into the Kensington Private Equity Fund to date.