Fees & Taxes

What fees does OUSG charge?

The only fees we charge are a 20 bps management fee and coverage of fund expenses, which we cap at 15 bps. Note that this management fee includes Ondo management fees (which we waived until Jan 1 2025) and other fees assessed by 3rd parties to manage the underlying assets. Those 3rd party fees are not explicitly borne by the Fund, and instead simply reduce the yield the Fund receives. Instant minting and redemption may incur additional fees; please see the OUSG product page for the most up to date information.

How is OUSG taxed?

For US federal income tax purposes, the fund is taxed as a partnership. As a result, the fund itself does not pay income taxes. Instead, the fund’s profits, losses, deductions, and credits “pass through” to the individual partners, who report these on their personal tax returns. The fund will issue Schedule K-1 forms to each limited partner, detailing their share of income, interest, dividends, short-term capital gains or losses, long-term capital gains or losses, deductions, credits, and other tax items. Limited partners will use this information to report their share of the fund’s activity on their individual tax returns. Limited partners may also be subject to state and local taxes based on the fund’s activities and where the partners are located.

Conversion from one version of OUSG to another (i.e. OUSG to rOUSG or vice versa) is not likely to be considered a taxable event.

Disclaimer: Tax laws are complex and subject to change. Specific circumstances can significantly impact tax treatment. Always consult with a qualified tax professional for personalized advice regarding tax matters related to the fund and its investments.

Do you withhold taxes for OUSG?

In general, because the fund is taxed as a partnership for US federal income tax purposes, the fund does not typically withhold taxes on behalf of its limited partners. However, the fund is required in specific circumstances to withhold taxes such as withholding obligations for foreign partners subject to withholding tax under certain conditions or limited partners that are subject to backup withholding. If a limited partner fails to provide a valid taxpayer identification number (e.g., a Social Security Number for individuals or an Employer Identification Number for entities), the fund might be required to withhold a specific percentage of that payment. Any payments withheld from limited partners are remitted to the relevant tax authority on behalf of the limited partner.

Disclaimer: Tax laws are complex and subject to change. Specific circumstances can significantly impact tax treatment. Always consult with a qualified tax professional for personalized advice regarding tax matters related to the fund and its investments.