System and method for providing a mutual fund rating platform

• US 20080294570A1
• Filed: 03/31/2008
• Published: 11/27/2008
• Est. Priority Date: 05/24/2007
• Status: Active Grant

• Current Assignee: Sean J. Egan
• Original Assignee: Sean J. Egan
• Inventors: Egan, Sean J.
• Granted Patent: US 7,899,728 B2
• Time in Patent Office: Days
• US Class Current: 705/36.00R
• 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 system and method are provided for assigning ratings (the “Ratings”) on mutual funds and other investment funds (collectively the “Funds”) based on various information gleaned from public and privately traded financial, currency, interest rate and other futures, along with options on said futures (collectively the “Futures”). In an illustrative implementation, the system can operate to combine information on the historical rates of return and variability in the rates of return of the Funds with the expected range of future returns for various asset classes as determined by the pricing of the Futures. Illustratively, the rating for the Funds (the “Rating”) can incorporate the range of expected future returns, the variability of past returns, and the level of risk.

Claims

1. A method for assigning ratings to a fund, comprising the steps of:

calculating an expected return over a time period for a sector corresponding to the fund based on financial futures corresponding to the sector;

calculating an expected range of returns for the sector based on prices of options for the futures;

calculating an expected return for the fund over a time period based on the calculated expected return for the corresponding sector, the expected range of returns for the corresponding sector; and

on information specific to the fund, assigning a rating based on the expected return for the fund.

2. The method of claim 1, wherein said information specific to the fund includes an annual return adjustment factor equal to the difference between the annualized returns for the fund and a median return for other funds in the sector.

3. The method of claim 1, wherein said information specific to the fund includes a factor for the extent to which the fund'"'"'s returns are below the median for that sector for a time period.

4. The method of claim 1, wherein, in the step of calculating expected annual returns for the fund, an adjustment for qualitative factors is made.

5. The method of claim 1, wherein said step of calculating an expected annual return comprises the steps of calculating a low, and a high expected annual return.

6. The method of claim 1, wherein said step of assigning a rating comprises assigning one of a plurality of ratings to each fund.

7. The method of claim 1 further comprising providing the rating to a participating user.

8. A method for predicting expected returns of a fund, comprising the steps of:

calculating an expected return over a time period for a sector corresponding to the fund based on financial futures corresponding to the sector;

calculating an expected range of returns for the sector based on prices of options for the futures; and

calculating an expected annual return for the fund based on the expected annualized return for the corresponding sector, the expected range of returns for the corresponding sector and on information specific to the fund.

9. The method of claim 8, wherein said information specific to the fund includes an annual return adjustment factor equal to the difference between the annualized returns for the fund and a median return for other funds in the sector.

10. The method of claim 8, wherein said information specific to the fund includes a factor for the extent to which the fund'"'"'s returns are below the median for that sector for a time period.

11. The method of claim 8, wherein, in the step of calculating expected annual returns for the fund, an adjustment for qualitative factors is made.

12. The method of claim 8, wherein said step of calculating an expected annual return comprises the steps of calculating a low, and a high expected annual return.

13. A system for assigning ratings to a fund, comprising:

means for calculating an expected return over a time period for a sector corresponding to the fund based on financial futures corresponding to the sector;

means for calculating an expected range of returns for the sector based on prices of options for the futures;

means for calculating an expected return for the fund over a time period based on the calculated expected return for the corresponding sector, the expected range of returns for the corresponding sector; and

means for assigning a rating based on the expected return for the fund using information specific to the fund.

14. The system of claim 13, wherein said information specific to the fund includes an annual return adjustment factor equal to the difference between the annualized returns for the fund and a median return for other funds in the sector.

15. The system of claim 13, wherein said information specific to the fund includes a factor for the extent to which the fund'"'"'s returns are below the median for that sector for a time period.

16. The system of claim 13, wherein said means for calculating expected annual returns for the fund comprises means for permitting a user to make an adjustment for qualitative factors.

17. The system of claim 13, wherein said means for calculating an expected annual return comprises means for calculating a low and a high expected annual return.

18. The system of claim 13, wherein said means for assigning a rating comprises means for assigning one of a plurality of ratings to each fund.

19. The system as recited in claim 13 further comprising a means for communicating the rating to a participating user.

20. A storage medium having stored therein a plurality of instructions, wherein the plurality of instructions, when executed by a processor, cause the processor to perform the steps of:

calculating an expected return over a time period for a sector corresponding to a fund based on financial futures corresponding to the sector;

calculating an expected range of returns for the sector based on prices of options for the fixtures;

calculating an expected return for the fund over a time period based on the calculated expected return for the corresponding sector, the expected range of returns for the corresponding sector; and

on information specific to the fund, assigning a rating based on the expected return for the fund.

21. The storage medium of claim 20, wherein said information specific to the fund includes an annual return adjustment factor equal to the difference between the annualized returns for the fund and a median return for other funds in the sector.

22. The storage medium of claim 20, wherein said information specific to the fund includes a factor for the extent to which the fund'"'"'s returns are below the median for that sector for a time period.

23. The storage medium of claim 20, wherein in the step of calculating expected annual returns for the fund, an adjustment for qualitative factors is made.

24. The storage medium of claim 20, wherein said step of calculating an expected annual return comprises the steps of calculating a low, and a high expected annual return.

25. The storage medium of claim 20, further comprising providing the rating to a participating user.