Investment Funds

Investment funds have highly specialized tax and accounting requirements. Their regulatory and investor reporting obligations are very rigorous. John Mott manages a specialist tax and accounting practice that delivers a highly personalized consulting and compliance service to small and medium-sized investment funds that choose to out-source some or all of their tax, accounting and reporting obligations. Mott’s practice is often able to complement the service offerings of the large third-party fund accounting and valuation providers.

Client Profile

Mott’s practice specializes in providing tax and accounting services to investment funds. Fund clients currently being serviced are varied as follows:

  • net assets ranging from $5 to $300 million;
  • investors numbering from 10 to over 60,000;
  • distribution by Offering Memorandum and Prospectus;
  • investor record keeping book-based (CDS) and certificated;
  • listed and private.

Fund clients pursue a variety of investment strategies:

  • hedge funds;
  • resource flow-throughs;
  • venture capital;
  • fixed income;
  • equities.

Fund clients are legally organized in a variety of forms:

  • limited partnerships;
  • labour sponsored venture capital corporations;
  • mutual fund trusts;
  • mutual fund corporations;
  • closed-end unit trusts.

Tax Services

Tax services provided to investment funds include:

  • preparing annual tax reporting (forms and instructions) to investors;
  • printing and mailing of investor tax forms;
  • preparing fund tax and information returns for reporting to the federal and provincial tax authorities;
  • preparing adjusted cost base (ACB) calculations;
  • providing technical support to the investor services function;
  • providing tax rate and other information to support the marketing/sales function;
  • researching fund and investor tax issues.

Accounting Services

Accounting services provided to investment funds include:

  • fund accounting and valuation;
  • supervising and liaising with the internal or third-party fund accounting and valuation service;
  • supporting and liaising with the external auditors;
  • preparing interim financial statements for reporting to investors;
  • preparing MER calculations;
  • preparing management fee calculations;
  • computing the financial statement provision for income and capital taxes;
  • providing technical support to the investor services function.
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