Crossfund.TM. investment process

• US 6,073,116 A
• Filed: 03/07/1997
• Issued: 06/06/2000
• Est. Priority Date: 03/07/1997
• Status: Expired due to Fees

• Current Assignee: John C. Boyle
• Original Assignee: John C. Boyle
• Inventors: Boyle, John C.
• Primary Examiner(s): Stamber, Eric W.
• Assistant Examiner(s): PATEL, JAGDISH
• Application Number:
  US08/814,724
• Time in Patent Office: 1,187 Days
• Field of Search: 705/36, 705/35, 705/37
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A process for investing in a mutual fund in an overseas portfolio without incurring an initial currency cost. The process is recorded by an exchange of rights to profit or loss of a domestic portfolio of securities with an exchange of rights to profit or loss of a overseas portfolio of securities. Time is a factor in the overseas ownership, and the process requires a fixed period, for example, ten years, for the rights exchange. When the rights exchange is reversed at a preset date in the future, the exchange allows the investor to return to the domestic securities portfolio. The return is done after computing the value of each domestic securities portfolio and the current market rate for currency exchange. The process allows the reversal to be done at the differential. Once the reversal is complete, the mutual fund is managed as a standard domestic mutual fund for the investor by the manager.

Claims

1. A computer-implemented Cross-Fund portfolio investment method that enables investors to obtain an international mutual fund while eliminating initial currency conversion costs comprising the steps of:

making a simultaneous offering during an offering period of the Cross-Fund portfolio investment in two markets, one market being international with respect to the other;

setting a fixed investment period;

investing each investor'"'"'s funds in a mutual fund in each investor'"'"'s respective home market;

obtaining an official currency rate between the markets at the close of the offering period;

exchanging of rights to profit and loss for the fixed investment period between each investor'"'"'s mutual fund at said official currency exchange rate; and

recording the exchange of rights by appropriate regulation, wherein each investor now owns the value of the other investor'"'"'s mutual fund in the international market.

2. The method of claim 1 further comprising the step of:

reversing the exchange of rights at the end of the fixed investment period or at any time with agreement of all investors, wherein the reversing step comprises the steps of;

obtaining an official currency rate between the markets;

computing a final value for each of investor'"'"'s mutual fund based on the official currency rate;

determining the differential between the final values of the investor'"'"'s mutual funds;

converting a positive differential into currency of the market with the positive differential based on the official currency rate; and

paying the positive differential to the investor in the market with the positive differential.

3. A computer-implemented Cross-Fund portfolio investment system that enables investors to obtain an international mutual fund while eliminating initial currency conversion costs comprising the steps of:

means for making a simultaneous offering during an offering period of the Cross-Fund portfolio investment in two markets, one market being international with respect to the other;

means for setting a fixed investment period;

means for investing each investor'"'"'s funds in a mutual fund in each investor'"'"'s respective home market;

means for obtaining an official currency rate between the markets at the close of the offering period;

means for exchanging of rights to profit and loss for the fixed investment period between each investor'"'"'s mutual fund at said official currency exchange rate; and

means for recording the exchange of rights by appropriate regulation, wherein each investor now owns the value of the other investor'"'"'s mutual fund in the international market.

4. The system of claim 3 further comprising:

means for reversing the exchange of rights at the end of the fixed investment period or at any time with agreement of all investors, wherein the means for reversing comprises;

means for obtaining an official currency rate between the markets;

means for computing a final value for each investor'"'"'s mutual fund based on the official currency rate;

means for determining the differential between the final values of the investor'"'"'s mutual funds;

means for converting a positive differential into currency of the market with the positive differential based on the official currency rate; and

means for paying the positive differential to the investor in the market with the positive differential.