@iceman321 , generally agreeing with my colleague ( @Opus 17 ) as to the tax handling of Mutual Funds in general. However, for foreign Mutual Funds there may be another wrinkle, depending on exact facts. This is because these are often ( based on characteristics of the entity and investment pattern ) classified as PFIC ( Passive Foreign Investment Company ) with a whole bunch of generally onerous / punishing taxing regime. That is where the form 8621 comes in. You also then have to choose mark-to-market or backward allocation of imputed gain over the holding period.
For a more detailed and focused answer on this ( and as applicable to you specifically ) you will have to provide more details about the fund, where constituted etc. etc. If you are uncomfortable detailing in this public forum, you can choose to use PM ( but again NO Personally Identifiable Information).
I also agree with @Opus 17 that this is not a "custodial account" for purposes of FBAR ( form 114 at FinCen.gov ) or FATCA ( form 8938 along with your return ).
Another issue to be aware of is even in mark-to-market, your foreign taxes associated with this imputed income kind of gets in trouble -- no foreign taxes to offset US taxes and similar issue if you choose to use the delayed / allocated actual income and taxes thereon.
Depending on the amounts involved , you may want to divest this and/or use the services of a tax professional familiar with PFIC.
Is there more I can do for you /
Namaste ji
pk
