Excepted Investment Fund (EIF)

An EIF is a basic concept that reduces the degree of disclosure of certain investments. The concept of the EIF was created by statute and is solely a characterization for financial disclosure purposes. An EIF may include pooled investments such as mutual funds, common trust funds of a bank or other financial institution, unit investment trusts, and limited partnerships if they meet all of the following tests.

An EIF is an investment vehicle that is:

1. widely held;
2. either (a) publicly traded (or publicly available) or (b) widely diversified; and
3. independently managed, which means that it is arranged so that the filer neither exercises control nor has the ability to exercise control over the assets held in the investment vehicle.

To qualify as an EIF, an investment vehicle must satisfy the requirements of both paragraphs 1 and 3 above, and either 2(a) or 2(b). With regard to 2(b), "widely diversified" means that the investment pool:

1. holds no more than 5% of the value of its portfolio in the securities of any one issuer (other than the U.S. Government); and
2. holds no more than 20% of the value of its portfolio in any particular economic or geographic sector.

SF 278 Filers should identify EIFs while OGE Form 450 Filers do not.