Synthetic fixed income principal protected vehicle and methodology

• US 20020174046A1
• Filed: 04/05/2002
• Published: 11/21/2002
• Est. Priority Date: 04/06/2001
• Status: Active Grant

• Current Assignee: Mary Rose Mistretta
• Original Assignee: Mark J. Mistretta
• Inventors: Mistretta, Mark J.
• Granted Patent: US 8,234,199 B2
• Time in Patent Office: Days
• US Class Current: 705/36
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

Methods and systems are provided for structuring and investing in a single investment vehicle that combines a guarantee of a predetermined percentage of principal along with a potential for returns historically associated with high risk equity investments. Methods and systems of the invention are useful for allocating investments to provide potentially high yields while preserving a guaranteed amount of principal over a predetermined investment period. Methods of the invention are also useful for providing institutional investors with a return driven investment vehicle that also provides access to principal during an investment period in order to meet pre-existing or continuing financial obligations.

Claims

1. A method for structuring an investment vehicle, the method comprising the steps:

a) providing a managed investment pool; and

,

b) providing a guaranteed investment pool,

wherein an investment agreement provides a guaranteed return of principal over a predetermined period of time.

2. The method of claim 1, wherein return of a percentage of investment principal to an investor is guaranteed at the end of a guarantee period.

3. The method of claim 1, wherein a percentage of an investment principal is returned to an investor at a predetermined interval during said predetermined period of time.

4. The method of claim 1, wherein said guaranteed investment pool comprises an instrument selected from the group consisting of a GIC, a treasury note, and a zero coupon bond.

5. The method of claim 3, wherein said percentage of said investment principal is provided in the form of a current cash coupon.

6. The method of claim 1, wherein said guaranteed investment pool is backed by at least one financial instrument selected from an A rated security, or above, a mortgage backed security, a corporate bond, a municipal bond, a U.S. Treasury bond or note, an index tied to U.S. bonds and notes, a GNMA, a FNMA, a Guaranteed Insurance Contract of 3 to 15 years, a collateralized mortgage obligation, a LIBOR-based investment of 5 to 15 year maturity, a financial guarantee insurance, a funding agreement, an annuity contract, a zero-coupon bond, and foreign equivalents thereof.

7. The method of claim 6, wherein said financial instrument is provided free of a sales commission.

8. The method of claim 1, wherein said managed investment pool comprises at least one of an investment in a private company, private equity, real estate, and venture capital.

9. The method of claim 1, wherein said managed investment pool comprises an investment in at least one class of investment selected from the group consisting of biotechnology, pharmaceutical, medical device, energy, and telecommunication investments, and publicly traded securities.

10. A method for guaranteeing a portion or a multiple of invested principal and providing a managed investment return, the method comprising the steps of:

a) allocating a first portion of an investment principal into a managed investment pool; and

b) allocating a second portion of said investment principal into a guaranteed investment, wherein an investment agreement provides for the regeneration of a portion or a multiple of invested principal based on the guaranteed investment.

11. The method of claim 10 wherein said investment agreement guarantees return of said investment principal at the end of an investment period.

15. The investment vehicle of claim 14, wherein the guaranteed return portion comprises at least one selected from:

U.S. Treasury bonds and notes, indices tied to U.S. bonds and notes, GNMA'"'"'S, FNMA'"'"'S, Guaranteed Insurance Contracts of 3 to 15 years;

collateralized mortgage obligations;

LIBOR-based investment of 5 to 15 year maturities, Financial Guarantee Insurance, funding agreements, annuity contracts, zero-coupon bonds, and foreign equivalents.

16. The investment vehicle of claim 14, wherein the variable return portion comprises at least one investment selected from:

real estate, private equities, private companies, venture capital, and, publicly traded securities.

17. The investment vehicle of claim 14, wherein the variable return portion comprises at least one investment selected from:

biotechnology, pharmaceutical, energy, telecommunications, and medical device investments.

12. A computer system for guaranteeing a portion of or a multiple of invested principal and providing a managed investment return, the system comprising:

a) means for allocating an investment into an active investment pool and an investment agreement,

wherein said investment agreement provides a guaranteed return on said investment.

13. A method for organizing an investment vehicle to provide for an allocation of assets into fixed and active investments.

14. An investment vehicle for providing a return on an investment principal comprising:

a guaranteed return portion for providing a guaranteed return of the investment principal at a predetermined period of time; and

a variable return portion for providing a variable return on the investment principal over the predetermined period of time.