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Prospector!

Ben
in Fund Discussions
Today I received an unrequested check for my entire investment in the Prospector Opportunity Fund. No explanation. And not quite the entire amount. They withheld several thousand dollars. In a Roth IRA. Um...what? No tax should be due.

I'm in the process of sorting this out. So far I have found out that Prospector has decided to liquidate their mutual funds. And they did not, apparently, decide to inform their shareholders. I don't go as far as to accuse them of deciding to deliberately keep it a secret. But still, this is sloppy. And I want the rest of money un-withheld. I can't be the only annoyed *former* shareholder. UPDATE: the money has been "sent to the government". I have to apply to them to get my money back. All Prospector will say on the telephone is "we will send you a 1099 R". I suppose that means that I may/will/might get a refund from the IRS for any amount over my tax bill.

I'm posting this primarily for the benefit of anyone else who receives a check and did not know their fund had been liquidated by Prospector. And also to let off steam of course.

Hmm. I made money in this investment. They are better at investing than in communicating.

Comments

  • CrashCrash
    It's good that you took the time to let everyone know. No chance of anyone NEW getting into those funds, anyhow. ...
  • yogibearbullyogibearbull
    There was a prospectus supplement dated 12/5/25 that should have been also received in mail by the holders of POPFX. Liquidation was on 12/31/25.
    As for IRA, withholding is required for any distributions not rolled into another IRA.
    It's too late in this situation, but my suggestion for fund liquidations has been to sell before the liquidation date.
    https://prospectorpartners.com/wp-content/uploads/Prospectus-Prospector-Funds-120525.pdf
  • Ben
    Thanks yogibearbull. Good suggestion but as I did not receive the supplement I was not informed and so did not have a reason to sell ( did not know there was a reason to sell).
    I'm half expecting that the coding on the 1099 R will be wrong, incorrectly showing that I do owe some money. But I don't. I've sorted this out before with a different Roth. The custodian sent the IRS a revised 1099.
    yogibearbull said:

    There was a prospectus supplement dated 12/5/25 that should have been also received in mail by the holders of POPFX. Liquidation was on 12/31/25.
    As for IRA, withholding is required for any distributions not rolled into another IRA.
    It's too late in this situation, but my suggestion for fund liquidations has been to sell before the liquidation date.
    https://prospectorpartners.com/wp-content/uploads/Prospectus-Prospector-Funds-120525.pdf

  • CrashCrash
    May not apply here, but Schwab lets me select ZERO withholding when I take money from my T-IRA. ...(?)
  • Derf
    "It's too late in this situation, but my suggestion for fund liquidations has been to sell before the liquidation date. " BINGO!!
    @Ben Do you use paper or e-mail to receive info from Prospector Funds, check your spam box. FWIW
  • yogibearbullyogibearbull
    @Crash, I checked, and the rule for IRAs is that any % withholding is allowed, but if not chosen by the IRA owner, then 10 % is default withholding.

    This may or not be useful for @Ben - the amount distributed and the amount withheld (to be refunded later) can be put into another Roth IRA without penalty or tax for those under 59.5.

    Rule for 401k/403b is different - mandatory withholding if not direct-transfer into another 401k/403b or IRA.
  • CrashCrash
    +1.
  • Ben
    Paper. I check for spam on devices regularly. I simply did not receive it and even if I had, an investment firm liquidating all of their mutual funds is a big deal. They should announce it clearly on its own, not hide it in a prospectus supplement that few will read.
    Derf said:

    "It's too late in this situation, but my suggestion for fund liquidations has been to sell before the liquidation date. " BINGO!!
    @Ben Do you use paper or e-mail to receive info from Prospector Funds, check your spam box. FWIW

  • Derf
    Thank you for the reply, @Ben
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