Methods for issuing, distributing, managing and redeeming investment instruments providing securitized annuity options

The method of issuing and managing an investment instrument denominated as a number of units or shares each of which as first issued entitles a holder to receive a specified monetary unit of a specified currency at periodic calendar intervals specified in said instrument as issued or, in the alternative, said method comprising the steps of:

• issuing said investment instrument to a holder in exchange for an initial investment,
• after issuing said investment instrument, periodically publishing, reporting or otherwise revealing to the current holder of said investment instrument the stated current monetary value of said units or shares,
• on or about at a future maturity date specified in said instrument as issued, paying a lump sum monetary payment to the current holder of said investment instrument at said maturity date which will provide a guaranteeable minimum rate of return on said initial investment during the accumulation period preceding said maturity date as specified in said instrument as issued, and
• at the option of said holder exercised on or about said maturity date, converting all or part of said investment instrument or said lump sum monetary payment into the right to receive a guaranteeable annuity income consisting of at least said specified monetary unit of said specified currency for each of said units or shares payable at each of said periodic calendar intervals as specified in said instrument as issued.

The method of issuing and managing an investment instrument that allows its holder to own a liquid investment asset and to know with reasonable certainty both the asset's minimum value at a future maturity date specified by said instrument as first issued as a minimum guaranteeable lump sum payment amount and to know the minimum annuity income that the asset can provide after said maturity date as specified in said instrument as first issued, said method including the steps of:

• denominating said investment instrument as a number of units or shares each of which provide a minimum annuity income that said holder will have the right to receive each month after said maturity date, said minimum annuity income being expressed in said instrument as first issued as a single monetary unit of a specified currency,
• periodically publishing, reporting or otherwise revealing to said holder the stated current monetary value of said units or shares,
• transferring said number of units or shares to said holder in exchange for a purchase price payment equal to said stated monetary value of said units or shares at the time said units or shares are transferred,
• upon demand made by said holder made prior to said maturity date, exchanging all or part of said units or shares for a redemption value substantially equal to said stated current monetary value at the time of said demand,
• paying to said holder at said maturity date at least said minimum guaranteeable lump sum payment amount specified in said instrument as first issued, and
• converting, upon demand by said holder on or about said maturity date, all or part of said specified lump sum payment amount into an annuity which entitles the holder to receive said minimum annuity income for each of said units or shares as specified in said instrument as first issued.