Open end mutual fund securitization process
First Claim
1. An electronic data processing method for administering a financial product having a fixed number of shares over a predetermined period of time, so that the financial product can be traded as a security, the price of which can be determined in real time on the basis of information about a plurality of securities, comprising the steps of:
- a) directing a computer processor to select from said plurality of securities a selected portfolio of securities, the risk/return performance of which over a predetermined period of time meets a predefined benchmark performance, including;
i) providing a database of information on securities available for trading;
ii) electronically processing information in said provided database to identify securities, the asset size of which is above a predetermined threshold; and
iii) electronically searching the identified securities to select a subset of N securities, the risk/return performance of which is superior to the risk/return performance of all identified securities;
b) receiving information on each of said plurality of securities in an electronic data format;
c) storing at least the received information on each security in the selected portfolio in a computer memory;
d) electronically processing said stored information to determine in real time the price of the financial product on the basis of a user-defined method of weighing the select subset of N securities; and
e) outputting an indication of the in real time determined price of the financial product in humanly readable format.
1 Assignment
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Accused Products
Abstract
A mutual fund securitization process permitting the trading of open end mutual funds and linked derivative securities on or off the floor of a National Securities Exchange. The targeted individual open end mutual fund or group of open end mutual funds, selected through a screening process is securitized through the creation of a new, separate security. This new security is preferably a "closed end fund of funds" and linked derivative securities, which synthetically replicate the statistical relationship of the defined individual or group of open end mutual funds. The maintenance of financial records for the new security is maintained by electronically storing dividend, capital gains and income received from the open end funds which have been invested in, and calculating pro-forma financial statements to disseminate to shareholders and all relevant parties.
506 Citations
10 Claims
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1. An electronic data processing method for administering a financial product having a fixed number of shares over a predetermined period of time, so that the financial product can be traded as a security, the price of which can be determined in real time on the basis of information about a plurality of securities, comprising the steps of:
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a) directing a computer processor to select from said plurality of securities a selected portfolio of securities, the risk/return performance of which over a predetermined period of time meets a predefined benchmark performance, including; i) providing a database of information on securities available for trading; ii) electronically processing information in said provided database to identify securities, the asset size of which is above a predetermined threshold; and iii) electronically searching the identified securities to select a subset of N securities, the risk/return performance of which is superior to the risk/return performance of all identified securities; b) receiving information on each of said plurality of securities in an electronic data format; c) storing at least the received information on each security in the selected portfolio in a computer memory; d) electronically processing said stored information to determine in real time the price of the financial product on the basis of a user-defined method of weighing the select subset of N securities; and e) outputting an indication of the in real time determined price of the financial product in humanly readable format. - View Dependent Claims (2)
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3. An electronic data processing method for administering a financial product having a fixed number of shares over a predetermined period of time, so that the financial product can be traded as a security the price of which can be determined in real time on the basis of information about a plurality of securities, comprising the steps of:
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a) directing a computer processor to select from said plurality of securities a selected portfolio of securities based upon a particular performance criteria for the securities so selected which meets a predefined benchmark performance, including; i) providing a database of information on securities available for trading; ii) electronically processing information in said provided database to identify securities, the asset size of which is above a predetermined threshold; and iii) electronically searching the identified securities to select a subset of N securities, the performance criteria of which is superior to the performance criteria of all identified securities; b) receiving information on each of said plurality of securities in an electronic data format; c) storing at least the received information on each security in the selected portfolio in a computer memory; d) electronically processing said stored information to determine in real time the price of the financial product on the basis of a user-defined method of weighing the select subset of N securities; and e) outputting an indication of the determined in real time price of the financial product in humanly readable format. - View Dependent Claims (4, 5, 6, 7, 8, 9, 10)
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Specification