US2003009400A2PendingUtilityA2

Open end mutual fund securitization process

Priority: Oct 12, 1995Filed: Apr 23, 2001Published: Jan 9, 2003

Est. expiryOct 12, 2015(expired)· nominal 20-yr term from priority

Inventors:Kenneth Kiron Kevin S. Bander

G06Q 40/04G06Q 40/00G06Q 40/06

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References

Claims

Abstract

Abstract of Disclosure A mutual fund securitization process permitting the trading of open end mutual funds and linked derivative securities on or off the floor of a National Securities Exchange. The targeted individual open end mutual fund or group of open end mutual funds, selected through a screening process is securitized through the creation of a new, separate security. This new security is preferably a "closed end fund of funds" and linked derivative securities, which synthetically replicate the statistical relationship of the defined individual or group of open end mutual funds. The maintenance of financial records for the new security is maintained by electronically storing dividend, capital gains and income received from the open end funds which have been invested in, and calculating pro-forma financial statements to disseminate to shareholders and all relevant parties.

Claims

exact text as granted — not AI-modified

Claims

1. 53. A method comprising the steps of:
creating a derivative based on a unit investment trust having a number of shares and having a portfolio comprising of securities within a subgroup of a group of securities and satisfying an investment objective;
trading the derivative on an exchange at a price related to the securities within the portfolio; and
outputting an indication of the price in a humanly readable format.

2. 90. The method of claim 53 wherein the investment objective includes an index of the group of securities.

3. 91. The method of claim 53 wherein the investment objective includes aggressive growth.

4. 92. The method of claim 53 wherein the investment objective includes growth and income.

5. 93. The method of claim 53 wherein the investment objective includes growth.

6. 94. The method of claim 53 wherein the investment objective includes income.

7. 95. The method of claim 53 wherein the investment objective includes investing in a sector.

8. 96. The method of claim 53 wherein the investment objective includes equity.

9. 97. The method of claim 53 wherein the investment objective is small companies.

10. 98. The method of claim 53 wherein the investment objective is government bonds.

11. 99. The method of claim 53 wherein the investment objective is bonds.

12. 100. The method of claim 53 further comprising the step of listing the derivative on an
exchange.

13. 101. A method comprising the steps of:
listing a derivative based on a unit investment trust having a plurality of shares and a portfolio comprising of securities that satisfy an investment objective, the securities within the portfolio being weighted;
trading the derivative on an exchange at a price related to the securities within the portfolio; and
displaying in real time the price that the derivative was traded on the exchange.

14. 102. The method of claim 101 further comprising the step of electronically trading the
derivative.

15. 103. The method of claim 101 wherein the investment objective includes providing an index.

16. 104. The method of claim 101 wherein the investment objective includes aggressive growth.

17. 105. The method of claim 101 wherein the investment objective includes growth and income.

18. 106. The method of claim 101 wherein the investment objective includes growth.

19. 107. The method of claim 101 wherein the investment objective includes income.

20. 108. The method of claim 101 wherein the investment objective includes investing in a sector.

21. 109. The method of claim 101 wherein the investment objective includes equity.

22. 110. The method of claim 101 wherein the investment objective is small companies.

23. 111. The method of claim 101 wherein the investment objective includes government bonds.

24. 112. The method of claim 101 wherein the investment objective includes bonds.

25. 113. A derivative comprising:
an underlying financial asset comprising a unit investment trust having a portfolio of securities, the securities within the portfolio being weighted and the portfolio being changeable to maintain an investment objective; and
a plurality of outstanding shares of the underlying financial asset listed and tradable on an exchange at a price related to the price of the securities within the portfolio.

26. 114. The derivative of claim 113 wherein the investment objective includes providing an index.

27. 115. The derivative of claim 113 wherein the investment objective includes aggressive growth.

28. 116. The derivative of claim 113 wherein the investment objective includes growth and income.

29. 117. The derivative of claim 113 wherein the investment objective includes growth.

30. 118. The derivative of claim 113 wherein the investment objective includes income.

31. 119. The derivative of claim 113 wherein the investment objective includes investing in a sector.

32. 120. The derivative of claim 113 wherein the investment objective includes equity.

33. 121. The derivative of claim 113 wherein the investment objective is small companies.

34. 122. The derivative of claim 113 wherein the investment objective is bonds.

35. 123. The derivative of claim 113 wherein the investment objective is government bonds.

36. 124. A method comprising the steps of:
buying a derivative based on outstanding shares of a unit investment trust having a portfolio comprising of securities, the securities within the portfolio being weighted and the portfolio being changeable to maintain an investment objective;
selling the derivative on an exchange at a price related to the price of the securities within the portfolio; and
displaying in real time the price that the derivative was traded on the exchange.

37. 125. The method of claim 124 wherein the investment objective includes providing an index.

38. 126. The method of claim 124 wherein the investment objective includes aggressive growth.

39. 127. The method of claim 124 wherein the investment objective includes growth and income.

40. 128. The method of claim 124 wherein the investment objective includes growth.

41. 129. The method of claim 124 wherein the investment objective includes income.

42. 130. The method of claim 124 wherein the investment objective includes investing in a sector .

43. 131. The method of claim 124 wherein the investment objective includes equity.

44. 132. The method of claim 124 wherein the investment objective is small companies.

45. 133. The method of claim 124 wherein the investment objective is government bonds.

46. 134. The method of claim 124 wherein the investment objective is bonds.

47. 135. A method comprising the steps of:
listing on an exchange a derivative based on outstanding shares of a unit investment trust having a portfolio comprising of securities, the securities being changeable to maintain an investment objective;
providing an exchange for trading the derivative at a price related to the price of the securities within the portfolio; and
displaying in real time the price that the derivative was traded on the exchange.

48. 136. The method of claim 135 wherein the investment objective includes providing an index.

49. 137. The method of claim 135 wherein the investment objective includes aggressive growth.

50. 138. The method of claim 135 wherein the investment objective includes growth and income.

51. 139. The method of claim 135 wherein the investment objective includes growth.

52. 140. The method of claim 135 wherein the investment objective includes income.

53. 141. The method of claim 135 wherein the investment objective includes investing in a sector.

54. 142. The method of claim 135 wherein the investment objective includes equity.

55. 143. The method of claim 135 wherein the investment objective is small companies.

56. 144. The method of claim 135 wherein the investment objective is bonds.

57. 145. The method of claim 135 wherein the investment objective is government bonds.

58. 146. A method comprising the steps of:
listing a derivative based on an open end fund having a plurality of shares and a portfolio comprising of securities that satisfy an investment objective, the securities within the portfolio being weighted;
trading the derivative on an exchange at a price related to the securities within the portfolio; and
displaying in real time the price that the derivative was traded on the exchange.

59. 147. The method of claim 146 further comprising the step of electronically trading the
derivative.

60. 148. The method of claim 146 wherein the investment objective includes providing an index.

61. 149. The method of claim 146 wherein the investment objective includes aggressive growth.

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