Open End Mutual Fund Securitization Process

• US 20030009405A2
• Filed: 04/20/2001
• Published: 01/09/2003
• Est. Priority Date: 10/12/1995
• Status: Active Grant

• Current Assignee: Leveraged Innovations LLC
• Original Assignee: Mopex Incorporated
• Inventors: Kiron, Kenneth, Bander, Kevin
• Granted Patent: US 7,698,192 B2
• Time in Patent Office: Days
• US Class Current: 705/36R
• 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

Abstract of Disclosure

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.

Claims

1. 53. A method comprising the steps of:

identifying securities within a substantially similar industry;

separating the securities into a group satisfying market capitalization criteria;

creating a unit investment trust having a number of outstanding shares and a portfolio of securities within the group;

providing a weighting of the securities comprising the portfolio;

changing the securities comprising the portfolio in response to a change in the identified securities;

trading the outstanding shares on an exchange at a real time determined price related to the securities comprising the portfolio; and

outputting an indication of the real time determined price in a humanly readable format.

2. 90. The method of claim 53 further comprising the step of listing the outstanding shares on an exchange.

3. 91. The method of claim 53 further comprising the step of listing on an exchange a derivative having a price related to the real time determined price.

4. 92. The method of claim 53 further comprising the step of calculating overall positions of shareholders of the outstanding shares.

5. 93. The method of claim 53 further comprising the step of electronically trading the outstanding shares.

6. 94. The method of claim 53 wherein the group satisfies price/earnings ratio criteria.

7. 95. A method comprising the steps of:

listing outstanding shares representing ownership of a unit investment trust having a portfolio comprising of securities within a substantially similar industry and satisfying market capitalization criteria, the securities within the portfolio being weighted;

providing an exchange for trading the outstanding shares at a price related to the price of the securities within the portfolio; and

displaying in real time the price that the outstanding shares were traded on the exchange.

8. 96. The method of claim 95 further comprising the step of listing a derivative product on an exchange and having a price related to the price of the outstanding shares.

9. 97. The method of claim 95 further comprising the step of providing the weighting of the securities within the portfolio.

10. 98. A method comprising the steps of:

buying on an exchange outstanding shares representing ownership of a unit investment trust having a portfolio comprising of securities within a substantially similar industry and satisfying market capitalization criteria, the securities within the portfolio being weighted;

selling on the exchange the outstanding shares at a price related to the price of the securities within the portfolio; and

displaying in real time the price that the outstanding shares were traded on the exchange.

11. 99. The method of claim 98 wherein the securities within the portfolio satisfy price/earnings ratio criteria.

12. 100. A product comprising:

a unit investment trust having a portfolio comprising of securities that are within a substantially similar industry and satisfying market capitalization, the securities within the portfolio being weighted and the portfolio being changeable in response to a change in the identified group;

a plurality of outstanding shares listed and tradable on an exchange at a price related to the price of the securities within the portfolio; and

an electronic system that displays in real time the price that the outstanding shares were traded on the exchange.

13. 101. The product of claim 100 wherein the securities within the portfolio satisfy price/earnings ratio criteria.