Robeco-Sage Moves to 1099 Tax Reporting

Abandons 'complex' K-1 reporting

More On Tax Planning

from The Advisor's Professional Library
  • Annuities: Estate Tax The value of certain types of annuities may be included in an estate’s value. Understanding the intricacies of these inclusions is a critically important aspect of estate planning.
  • Annuities: Variable Annuities Annuities are hot. The tax rules vary with the circumstances. Advisors must be aware of these intricacies when discussing annuities with clients.

Hedge fund provider Robeco-Sage announced Wednesday that as of Dec. 1, 2010, it has converted its Multi-Strategy Fund tax reporting to Form 1099 from K-1 filings. The move will make it one of a limited number of funds to use the simplified tax reporting.

“The K-1 tax reporting process can be a deterrent to some investors, not only because it is perceived by some as complex, but also because K-1’s are often not made available until much later in the year than Form 1099’s, often requiring investors to file tax extensions," Jill Schurtz, chief executive of Robeco-Sage, said in a statement.

Shurtz said Robeco-Sage was an early adopter of SEC-registered vehicles for hedge funds, as well as simplified tax reporting.

The firm expects the move will make hedge funds more popular among investors who have avoided them due to reporting burdens.

“This change also opens the door to those who want access to the benefits hedge funds offer but haven’t invested in them historically because of K-1’s. We believe the regulatory oversight and transparency inherent in an SEC registered fund combined with simplified tax reporting make this an extremely attractive vehicle for investors,” said Bill Stout, director of investor relations, in a statement.

The Multi-Strategy Fund is an SEC-registered fund of hedge funds, and attempts to achieve growth while reducing risk and volatility. It was launched in December 2005. As of Sept. 30, Robeco-Sage managed over $1.3 billion in assets for individual and institutional investors.

Reprints Discuss this story