S/M FOR PROVIDING AN OPTION TO CONVERT A PORTFOLIO OF ASSETS INTO A GUARANTEED INCOME FLOW AT A FUTURE DATE

• US 20070143199A1
• Filed: 11/03/2006
• Published: 06/21/2007
• Est. Priority Date: 11/03/2005
• Status: Active Application

• Current Assignee: Genworth Holdings, Inc. (Genworth Financial Incorporated)
• Original Assignee: Genworth Financial Incorporated
• Inventors: White, William, Sharpe, Matthew, Stiff, Geoffrey, Templeman, James, Atkinson, Landis
• Application Number:
  US11/556,396
• Publication Number:
  US 20070143199A1
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A system and method for providing an investor the ability to purchase an option to exchange a future value of an asset or a portfolio of assets, regardless of future performance or value, for at least one non-cash settlement instrument outcome on a future date, where the outcome of such option is contingent on (1) a payment of an option fee, and/or (2) maintaining the portfolio of assets in accordance with at least one guideline or benchmark required for the delivery of the guarantee outcome other than cash. The method comprising the steps of determining delivery of a non-cash guaranteed outcome based on an assessment of an underwriting strategy associated with an asset or portfolio of assets; and determining an option payment amount and at least one guideline required for the delivery of the non-cash guaranteed outcome.

Claims

1. A method for providing an investor the ability to purchase an option to exchange a future value of an asset or a portfolio of assets, regardless of future performance or value, for at least one non-cash settlement instrument outcome on a future date, where the outcome of such option is contingent on (1) a payment of an option fee, and/or (2) maintaining the portfolio of assets in accordance with at least one guideline or benchmark required for the delivery of the non-cash guaranteed outcome, the method comprising:

determining a delivery of the non-cash guaranteed outcome based on an assessment of an underwriting strategy associated with an asset or portfolio of assets; and

determining an option payment amount and at least one guideline required for the delivery of the non-cash guaranteed outcome.

2. The method of claim 1 wherein the assessment of an underwriting strategy comprises an assessment of the asset or portfolio of assets and an assessment of the investment manager'"'"'s strategy.

3. The method of claim 1 wherein the option payment amount and the at least one guideline or benchmark is based on the assessment of the underwriting strategy.

4. The method of claim 1 wherein the option payment is made by the investor or an investor agent to a Counterparty directly or through a trust or other acceptable arrangement.

5. The method of claim 4 wherein the Counterparty may comprise a/an trust, certificate corporation, corporation, limited partner, sole proprietor, partnership, limited liability corporation, collective trust, plan sponsor, custodian, bank, insurance company, broker dealer, fund company, benefit consultant, credit union, registered investment advisor, government or union.

6. The method of claim 1 wherein the asset or portfolio of assets comprises any acceptable portfolio or investment structure(s), mutual fund(s), separate account(s), structured product(s), custodial account(s), trust account(s), commingled fund(s), hedge fund(s), individual security(ies), structured settlement(s), private placement(s), partnership(s), corporation(s), or other acceptable structure that may be converted pursuant to the terms of the option.

7. The method of claim 1 wherein the delivery of the non-cash guaranteed outcome comprises a variable annuity contract with a floor equal to the guaranteed income stream amount.

8. The method of claim 1 wherein the option fee is based in part on the current value of the asset or portfolio of assets.

9. The method of claim 1 further comprising the step of conducting an ongoing valuation or appraisal of the guarantee by assessing compliance with the at least one guideline or benchmark.

10. The method of claim 9 wherein the guaranteed delivery of outcome other than cash is increased based on compliance with the at least one guideline or benchmark and the performance of the asset or portfolio of assets.

11. The method of claim 9 guarantee can decrease based on failure to comply with the at least one guideline or benchmark.

12. The method of claim 9 wherein the ongoing valuation or appraisal is conducted periodically.

13. The method of claim 9 further comprising the step of permitting remedies and corrective actions to continue to guarantee.

14. The method of claim 1 wherein the investor determines the at least one non-cash settlement instrument.

15. The method of claim 14 wherein the investor can add additional non-cash settlement instruments prior to or at conversion.

16. The method of claim 14 wherein the investor can cancel the option with or without penalties or additional charge.

17. The method of claim 1 wherein the guarantee is contingent on one or more lives.

18. The method of claim 1 wherein the underwriting guidelines can change on a future date.

19. The method of claim 1 wherein the guarantee can be transferred from one asset or portfolio of assets to another.

20. The method of claim 1 wherein the option payment can be funded by the investor or any other party.

21. The method of claim 1 wherein the option payment can be factored from the portfolio or the future payments or settlement options.

22. The method of claim 1 wherein the guaranteed outcome is be based on a formula that considers on the age and/or gender of the owner.

23. The method of claim 1 wherein the at least one settlement instrument results in a cash flow.

24. The method of claim 1 wherein the at least one settlement instrument results in a non-cash transaction.

25. The method of claim 1 wherein the at least one settlement instrument results in the portfolio of assets being transferred to a Counterparty as a remedy or as the purchase settlement option.

26. The method of claim 1 wherein the initial underwriting process determines the at least one settlement instrument.

27. The method of claim 1 wherein the investor or recipient of the guarantee is an individual or public, private entity.

28. The method of claim 1 wherein the recipient of the guarantee outcome other than cash is someone other than the investor.

29. The method of claim 1 wherein the at least one settlement instrument comprises two or more settlement instruments.

30. The method of claim 1 further comprising the step of interfacing with at least one external recordkeeping system.

31. A method for providing an option to exchange a future value of a portfolio of assets, regardless of future performance or value, for at least one non-cash settlement instrument outcome on a future date, comprising:

assessing an existing portfolio;

assessing an underwriting strategy associated with the portfolio;

determining a guaranteed delivery of outcome other than cash based on the portfolio and underwriting assessments;

issuing an option to exchange a future value of the portfolio, regardless of future performance or value, for at least one non-cash settlement instrument outcome on a future date;

collecting an option payment; and

auditing the investment strategy of the of portfolio.

32. A method for providing an option to exchange a future value of a portfolio of assets, regardless of future performance or value, for at least one non-cash settlement instrument outcome on a future date, comprising:

determining a guaranteed delivery of outcome other than cash based on an existing portfolio and an underwriting strategy associated with the portfolio;

determining an option payment amount and minimum strategy guidelines required for the guaranteed delivery of outcome other than cash to remain in effect;

adjust and cumulate the guarantee; and

deliver the appropriate guarantee.

33. A system for providing an investor the ability to purchase an option to exchange a future value of an asset or a portfolio of assets, regardless of future performance or value, for at least one non-cash settlement instrument outcome on a future date, where the outcome of such option is contingent on (1) a payment of an option fee, and/or (2) maintaining the portfolio of assets in accordance with at least one guideline or benchmark required for the delivery of the least one non-cash settlement instrument outcome, the system comprising:

a delivery outcome module for determining the delivery of a non-cash guaranteed outcome based on an assessment of an underwriting strategy associated with an asset or portfolio of assets; and

a option payment and guidelines module for determining an option payment amount and at least one guideline required for the delivery of the non-cash guaranteed outcome.