Open end mutual fund securitization process

• US 20020128951A1
• Filed: 04/24/2001
• Published: 09/12/2002
• Est. Priority Date: 10/12/1995
• Status: Abandoned Application

• Current Assignee: Kenneth Kiron, Kevin S. Bander
• Original Assignee: Kenneth Kiron, Kevin S. Bander
• Inventors: Bander, Kevin S., Kiron, Kenneth
• Application Number:
  US09/843,278
• Publication Number:
  US 20020128951A1
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

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

1. A process of operating a general purpose data processor of known type, to enable said data processor to execute formulas in an object computer program comprising a plurality of formulas providing a method for selecting from a computer readable storage database storing a sufficient number of open end mutual fund statistics comprising the steps of:

Examining each of said formulas in a storage area of said data processor to determine which formulas can be designated as defined.

Storing, in the sequence in which each formula is designated as defined, said formulas that are designated as defined.

Logically combining said formulas to produce a combined overall group of open end mutual funds which have a preferred statistical relationship over time as compared to those funds not included within the group.

Repeating said prior steps in claim 1 for at least undefined formulas as many times as required until all said formulas have been designated as defined and have been stored;

thereby producing the same results upon sequential execution of said formulas stored by said process when using the same given database, regardless of the order in which said formulas were presented in the object program prior to said process.

2. A process for synthetically replicating the preferred, combined overall open end mutual statistical relationship over time as formulated in claim 1 comprising:

A separate security from the open end fund, investing substantially all of its assets as formulated by claim 1 so as to be able to synthetically replicate the statistical relationship of said claim 1 with a high degree of correlation and consistency over time, and provide a means for intra-day trading of those funds formulated by said claim 1.

A derivative security which has its value derived from the trading of the separate security specified by claim 2.

A computerized accounting and reporting system that electronically gathers, stores and retrieves statistical and financial information regarding changes in the ownership of the separate security specified by claim 2 as well as that of income received on behalf of the separate security specified by claim 2 providing an ability to transmit said information to internal and external individuals and organizations.