FAQs: Investment Fund




1. The investment fund is not an excepted investment fund, but all of its underlying assets are below the dollar thresholds for reporting (i.e., $1,000 in value or $200 in income).  How should I report this investment fund?

Description:  Provide the name of the fund and, unless clear from the name, describe the type of asset (e.g., “hedge fund,” “stable value fund,” “venture capital fund,” etc.).

After the description of the investment fund, write “underlying assets below reporting thresholds.”

EIFSelect “No.”

ValueSelect the category that corresponds to the total value of your interest in the investment fund.

Report the income in the “Income Type” and “Income Amount” fields.  See Question #2 for more information on reporting income.

2. Do I provide the exact amount of income or do I select a category of income in the “Income Amount” field?

In the “Income Type” and “Income Amount” fields, you generally would report all income received during the reporting period.  But what you enter depends on several factors:

  • Income less than $201:  Select the “None (or less than $201)” category in the “Income Amount” field.  You do not need to specify the type of income.
  • Excepted investment fund:  If the asset qualifies as an excepted investment fund, select the “Income Amount” category that corresponds to the amount of income received by the asset during the reporting period.  You do not need to specify the type of income.
  • Dividends, capital gains, interest, rent, or royalties:  If the income from the asset can be classified as dividends, capital gains, interest, rent, or royalties, select all applicable types of income in the “Income Type” field, unless the asset is an excepted investment fund.  Also, select the category in the “Income Amount” field corresponding to the total amount of income you received during the reporting period.
  • Other income:  Describe the type of income in the “Income Type” field (e.g., “partnership share” or “distribution”).  Also, in the “Income Amount” field, provide the exact amount of income received during the reporting period, instead of selecting a category for the amount of income.

3. The fund in which I invest does not qualify as an excepted investment fund; however, it will not provide information about the underlying assets to me.  How do I satisfy the reporting requirements for this fund?

Please consult with your ethics official for guidance specific to your situation.

In general, an agency may certify a report if the agency is satisfied that the filer has made a good faith effort to obtain the required information and that the potential for conflicts has been addressed.  If you are a nominee to a full-time position requiring Presidential appointment and Senate confirmation (PAS), you will need to provide a letter from the fund stating that the fund will not disclose the underlying assets.  You also need to note the following in the “Description” field for the entry: “Underlying assets are not ascertainable.”  See OGE Legal Advisory LA-14-05 (September 30, 2014).

4. The fund in which I invest does not qualify as an excepted investment fund; however, I am bound by a confidentiality agreement from releasing information regarding the underlying assets.  How do I satisfy the reporting requirements for this fund?

Please consult with your ethics official for guidance specific to your situation.

In general, an agency may certify a report if the agency is satisfied that the filer is unable to disclose the information publicly due to a preexisting confidentiality agreement and that the potential for conflicts has been addressed.  If you are a nominee to a full-time position requiring Presidential appointment and Senate confirmation (PAS), you will need to agree to divest the fund after confirmation.  You also need to note the following in the “Description” field for the entry: “Underlying assets are not disclosed due to a preexisting confidentiality agreement.  I will divest this asset if confirmed.”  See OGE Legal Advisory LA-14-05 (September 30, 2014).

5. I am filing a New Entrant report in March 2019, so I report income for 2018 and 2019 up to the date of my filing.  However, the only statement of income that I receive from the fund is an annual K-1 and I have not yet received that document for 2018.  How should I calculate the income for 2018 and for the period January through March of 2019?

In those special cases where you cannot reasonably obtain income information, you are permitted to provide a good faith estimate.  Given the facts presented above, a good faith estimate for 2018 might be your K-1 income for 2017 and a good faith estimate of your 2019 income might be a pro-rated portion of 2017 income.  Whatever method you use for arriving at a good faith estimate, it is recommended that you provide a brief note explaining the method.

6. Can I list the underlying assets of the investment fund in an endnote?

Generally, you should report the underlying assets of a fund as separate line entries if you can ascertain the value or income information for the underlying assets.  However, you may use an endnote if you are reporting value and income information at the level of the fund overall.  You may also report underlying assets in an endnote if you have already reported the underlying assets of the fund in another place in your report or if the fund structure is particularly complicated.

When using endnotes, you must provide the total value of the investment in the fund and the total amount of income received as part of the line entry within the main body of the report.  In addition, if an underlying asset is a privately held company, report the line of business of the company in the endnote.  If an underlying asset is another investment fund, indicate whether it is an excepted investment fund (EIF).  If it is not an EIF, report the underlying assets.

7. The fund in which I invest does not qualify as an excepted investment fund and it has multiple levels of assets.  I can determine the value and income of certain underlying assets, but I cannot determine this information for all of the underlying assets.  How do I report value and income information?

When providing value and income information for a fund with multiple levels of assets, use the following guidelines:

  • Attribute value and income information down to the underlying assets at a lower level if it is possible to do so consistently.
  • Do not duplicate value/income information.  Therefore, if value/income information has been attributed to the underlying assets of a level, do not report the overall value/income information for the level itself.

As an example, you would ideally report Jones Capital Ventures, LLC, as follows:

#

Description

EIF

Value

Income Type

Income Amount

1

Jones Capital Ventures, LLC:

No

 

 

 

1.1

U.S. investment account (cash)

N/A

$1,001 - $15,000

 interest

$201 - $1,000

1.2

Jones Ventures II, LP:

No

 

 

 

1.2.1

Hydroponics Unlimited, LLC (agricultural products)

N/A

$15,001 - $50,000

 

None (or less than $201)

1.2.2

BMSL Propulsion, Inc. (rocket fuel research)

N/A

$15,001 - $50,000

 

None (or less than $201)

1.2.3

WQX Optics (medical devices)

N/A

$1,001 - $15,000

capital gains

$5,001 - $15,000

If you cannot attribute value/income among the holdings of Jones Ventures II, LP, report as follows:

#

Description

EIF

Value

Income Type

Income Amount

1

Jones Capital Ventures, LLC:

No

 

 

 

1.1

U.S. investment account (cash)

N/A

$1,001 - $15,000

interest

$201 - $1,000

1.2

Jones Ventures II, LP:

No

$50,001 - $100,000

capital gains

$5,001 - $15,000

1.2.1

Hydroponics Unlimited, LLC (agricultural products)

N/A

 

 

 

1.2.2

BMSL Propulsion, Inc. (rocket fuel research)

N/A

 

 

 

1.2.3

WQX Optics (medical devices)

N/A

 

 

 

If you cannot attribute value/income among the holdings of Jones Capital Ventures, LLC, report as follows:

#

Description

EIF

Value

Income Type

Income Amount

1

Jones Capital Ventures, LLC:

No

$50,001 - $100,000

capital gains interest

$5,001 - $15,000

1.1

U.S. investment account (cash)

N/A

 

 

 

1.2

Jones Ventures II, LP:

No

 

 

 

1.2.1

Hydroponics Unlimited, LLC (agricultural products)

N/A

 

 

 

1.2.2

BMSL Propulsion, Inc. (rocket fuel research)

N/A

 

 

 

1.2.3

WQX Optics (medical devices)

N/A