SYSTEM AND METHOD OF MANAGING AN INVESTMENT ON BEHALF OF AN INVESTOR

• US 20120203711A1
• Filed: 02/03/2012
• Published: 08/09/2012
• Est. Priority Date: 02/04/2011
• Status: Abandoned Application

• Current Assignee: Discovery Holdings Limited (Prudential PLC)
• Original Assignee: Discovery Holdings Limited (Prudential PLC)
• Inventors: Gore, Adrian, Rabson, Kenneth Steven, Mayers, Herschel Phillip
• Application Number:
  US13/365,527
• Publication Number:
  US 20120203711A1
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A method and system for managing an investment on behalf of an investor includes a monitoring module to monitor the performance of an investment over a period of time, the investment being an investment managed by an investment manager on behalf of an investor. A comparator module compares the performance of the investment with the performance of other similar types of investments for the period of time and a fee performance module determines a fee refund payment to the investor in the event that the performance of the investment in the period of time falls by a predetermined level below similar funds ranked by performance. A payments module effects the extra payment from the investment manager to the investor.

Claims

1. A computer system for managing an investment on behalf of an investor, the system including:

a monitoring module to monitor the performance of an investment over a period of time, the investment being an investment managed by an investment manager on behalf of an investor;

a comparator module to compare the performance of the investment with the performance of other similar types of investments for the period of time

a fee performance module to determine a fee refund payment to the investor in the event that the performance of the investment in the period of time falls by a predetermined level below similar funds ranked by performance; and

a payments module to effect the extra payment from the investment manager to the investor.

2. A computer system according to claim 1 wherein the fee performance module determines the fee refund payment to the investor in the event that the performance of the investment in the period of time falls below the top 25% of similar funds ranked by performance.

3. A computer system according to claim 1 wherein the monitoring module receives investment data via a communications network.

4. A computer system according to claim 3 wherein the monitoring module receives the investment data from a third party data provider.

5. A computer system according to claim 1 wherein the investment data includes at least some of information as unit prices, fees paid and income generated by the investment.

6. A computer system according to claim 1 wherein the fee performance module determines the fee refund payment to the investor based on the following formula:

Fee Refund % for Fund(i) at t=[TER−

Average Fee in Sector of Fund(i)]*Discount %*Average number of units in Fund(i) during last year*Unit Price Fund(i) at t

where

TER=Total Asset Manager Expense Ratio for Fund(i);

Avge Fee in sector=Average fee for a similar fund in the same sector as Fund(i);

the average number of units in a specific fund during the last year is equal to the number of units at the start proportionally increased/decreased allowing for switches into or withdrawals from the fund; and

Discount %=Depends on performance of Fund(i) over the last year.

7. A computer system according to claim 1 wherein the fee performance module determines the discount percentage using the following table:

8. A method for managing an investment on behalf of an investor, the method including:

Monitoring, by a computer, the performance of an investment over a period of time, the investment being an investment managed by an investment manager on behalf of an investor;

Comparing, by the computer, the performance of the investment over the period of time with the performance of other similar types of investments for the period of time;

Determining, by the computer, a fee refund payment to the investor in the event that the performance of the investment in the period of time falls by a predetermined level below similar funds ranked by performance; and

Paying the extra payment from the investment manager to the investor.

9. A method according to claim 8 wherein the investment data is received via a communications network.

10. A method according to claim 9 wherein the investment data is received from a third party data provider.

11. A method according to claim 8 wherein the investment data includes at least some of information as unit prices, fees paid and income generated by the investment.

12. A method according to claim 8 wherein the fee refund payment to the investor is determined based on the following formula:

Fee Refund % for Fund(i) at t=[TER−

Average Fee in Sector of Fund(i)]*Discount %*Average number of units in Fund(i) during last year*Unit Price Fund(i) at t

where

TER=Total Asset Manager Expense Ratio for Fund(i);

Avge Fee in sector=Average fee for a similar fund in the same sector as Fund(i);

the average number of units in a specific fund during the last year is equal to the number of units at the start proportionally increased/decreased allowing for switches into or withdrawals from the fund; and

Discount %=Depends on performance of Fund(i) over the last year.

13. A method according to claim 8 wherein the discount percentage is determined using the following table: