Open-end fund options plan for key personnel and a system and method for administering same
First Claim
1. A method for incentivizing an open-end fund service provider to defer compensation owed to the service provider comprising the steps of granting the service provider an award of options in an investment fund having a share price based on a net asset value, the options having a specified term and an initial value based on the net asset value, and adjusting the value of the options based on the change in the net asset value of the fund.
1 Assignment
0 Petitions
Accused Products
Abstract
A computer implemented method for incentivizing an open-end fund service provider to defer compensation owed to the service provider that includes the step of granting the service provider an award of options in an investment fund having a share price based on a net asset value of the fund. Also provided is a computer-based administration system to calculate the value of one or a series of options or similarly leveraged compensation arrangements granted by an open-end fund to service providers, summarize the values of those options, calculate the change in values since the prior valuation, and calculate expenses associated with the options, and calculate the NAV of shares offered and/or redeemed by the granting open-end fund.
22 Citations
36 Claims
- 1. A method for incentivizing an open-end fund service provider to defer compensation owed to the service provider comprising the steps of granting the service provider an award of options in an investment fund having a share price based on a net asset value, the options having a specified term and an initial value based on the net asset value, and adjusting the value of the options based on the change in the net asset value of the fund.
- 10. In an investment fund having purchasable and redeemable shares at a value based on a net asset value of the properties held in the fund, a method of incentivizing at least one of an investment advisor and service provider to forego compensation payable to the at least one of the investment advisor and service provider for services provided to the investment fund comprising the steps of calculating a beginning value of share of the investment funds, granting to the at least one of the investment advisor and service provider in lieu of the payable current compensation an award of options in shares of the investment fund at the beginning value and revaluing the beginning value of the options based on a change in net asset value of the fund.
- 20. A computer-implemented method for administering an open-end fund having outstanding shares representing a shareholder'"'"'s interest in the open-end fund and outstanding option units representing an option holder'"'"'s interest in shares of the open-end fund, the method comprising the steps of determining a value of the shares and determining a value for the options units at a first valuation period, allocating an amount owed by the open-end fund to at least one of the shareholders and option holders, recalculating a value of the shareholder'"'"'s shares that factors in the amount owed by the open-end fund, recalculating a value of the option units that factors in the amount owed by the open-end fund, and storing the recalculated value for each of the shares and the option units as ending values.
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27. In a system for valuing a net asset value of an open-end fund having shares issued to shareholders and options in the shares granted to option holders, a computer-assisted method of calculating the net asset value of the open-end fund comprising the steps of determining a value of the shareholder'"'"'s shares at a first valuation period, determining a value for the options granted by the open-end fund, allocating an amount owed by the open-end fund to at least one of the shareholders and option holders, recalculating a value of the shareholder'"'"'s shares that factors in the amount owed by the open-end fund, recalculating a value of the option holder'"'"'s shares that factors in the amount owed by the open-end fund, and storing in a database the recalculated value for each of the shareholder'"'"'s shares and option holder'"'"'s shares.
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28. A method of compensating an open-end fund service provider comprising the steps of awarding the service provider a grant of options in the open-end fund the options having been valued according the steps of determining a value of the shareholder'"'"'s shares at a first valuation period, determining a value for the options granted by the open-end fund, allocating an amount owed by the open-end fund to at least one of the shareholders and option holders, recalculating a value of the shareholder'"'"'s shares that factors in an amount owed by the open-end fund, recalculating a value of the option holder'"'"'s shares that factors in an amount owed by the open-end fund, and storing the recalculated value for each of the shareholder'"'"'s shares and option holder'"'"'s shares.
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29. A system for administering an open-end fund having outstanding fund shares issued to account holders and options granted to option holders comprising a database for storing beginning values for each of the outstanding shares and options, and an administrative engine in communication with the database for calculating new values for each of the fund shares and options based on a change in a net asset value of the open-end fund.
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35. A system for administering an open-end fund having outstanding fund shares and options granted by the open-end fund comprising means for storing beginning values for each of the outstanding shares and options, and calculating means in communication with the database for calculating new values for each of the fund shares and options based on a change in a net asset value of the open-end fund.
Specification