Investors will receive an audited annual report with financial statements, detailing the activity and financials for the overall Fund in which they are invested.
Investors will also receive a K-1 reporting their share of the prior year’s profits and losses for the Fund in which they invest. Here is an explanation of how K-1s work in a fund structure if you are not familiar.
Because our funds are invested in other funds, we have to wait until we receive final audited financial statements from those funds to compile the audited annual report and K-1. Those outside funds are not required to submit their audited financial statements with the regulators until March 31. We usually receive most of them around that time though it is typical for at least one or two of our managers to file an extension.
Once we have received the audited financial statements and K-1s from the other funds, we will work with our third party administrator, to put together the annual financial statement for Mutiny Funds, and then turn them over to our auditor and tax preparer, Cohen & Co., to perform their certified audit of the financials.
Once the audit has been completed, the annual report will be filed with the National Futures Association (NFA) and you will receive a copy. Typically this will be the end of June.
At the same time, the Cohen & Co. tax department will use the prior year’s financial statements to prepare the fund’s overall tax return and each investor’s individual K-1s. These will be sent out to you as soon as we receive them.
We will do everything in our power to get investors the K-1s promptly, but owing to the fact that we cannot begin our own process until we receive everything from our managers it is unlikely we will be able to send them out before June at the earliest. Based on prior years, investors should expect K-1s in August which would require filing an extension.
As a matter of practice, we will file an extension for Mutiny’s overall tax return, given the need to wait for the third party fund’s K-1s.