Method and system for providing risk tranches in an investment product
OwnerNicholas Matthew Maounisinventor
Life of this patent
Estimating the term…
Abstract
A method and system for investing in an investment fund by at least one investor are provided. The method includes defining at least two tranches of the investment fund, each tranche associated with a tranche risk profile. The method includes, for each investor, receiving an investment amount in each tranche. The method includes calculating a profit/loss for each investor based on the investment amounts, the tranche risk profiles and a performance of the investment fund.
Claims17
A computer-implemented investment method, comprising:
- for each of at least one of the investors, in accordance with instructions of the investor, allocating, by a computer processor, to each of at least two of a plurality of tranches of an investment product, a respective portion of investment amount of the respective investor, wherein the plurality of tranches have different risk profiles with respect to a same investment fund.
A computer-implemented investment method, comprising:
- allocating, by a computer processor, one of a profit and a loss resulting from an investment in at least one at least one investment fund to a plurality of tranches of an investment product;
- wherein:
- shares of each of the plurality of tranches are sold to a plurality of investors in the investment product;
- the tranches have different assigned risk profiles;
- at least one share of each of multiple ones of the plurality of tranches is sold to a single one of the plurality of investors;
- for each of the plurality of tranches, a respective monetary sum is received for the sale of the shares of the respective tranche;
- a total of the monetary sums is invested as a single investment in at least one investment fund;
- and
- the allocation is in accordance with the assigned risk profiles and in a manner disproportionate to respective percentages of the total to which the respective monetary sums correspond.
15-20. (canceled)
A computer system controlling investments in an investment fund by an investor, comprising:
- a memory, the memory configured to store:
- data representing a plurality of tranche risk profiles of a respective plurality of tranches, each associated with a same investment fund;
- and
- for an investor, at least two records, each record (a) indicating a respective position of an investment amount of the investor and (b) associated with a different respective one of the plurality of tranche risk profiles;
- and
- a processor configured to calculate a profit/loss for the investor based on the investment amount positions, the tranche risk profiles and a performance of the investment fund;
- wherein:
- each tranche risk profile includes at least one of a priority upside attachment point, an upside attachment point, a priority upside participation percentage, a pro-rata upside attachment point, a priority upside detachment point, a priority downside attachment point, a downside detachment point, and a downside participation percentage;
- and
- the tranches are priced as a set of replicated options.
22-24. (canceled)
Dependencies are inferred from the claim text.