Patent ID: 7739177
Filing Date: 2010-06-15
Classification: G06Q

Abstract:
1. A method implemented at least partially in a programmed computer for creating a loss reduction fund, the method comprising: defining an investment category for the fund; associating a plurality of at least three equity investment instruments with the investment category, wherein the at least three equity investment instruments are diverse with respect to each other forming a diversified set of equity investment instruments reflecting different and diverse industry sectors or industry subsectors, further wherein investment performance of each of the at least three equity investment instruments is not closely correlated because the at least three equity investment instruments reflect different and diverse industry sectors or industry subsectors; calculating by the programmed computer, premiums for each equity investment instrument, the premiums held by the fund and at least partially used to reimburse losses by holders of the at least three equity investment instruments; and determining by the programmed computer, a loss threshold, wherein losses less than the loss threshold incurred by holders of the at least three equity investment instruments that incurred a loss are not reimbursed and at least a portion of the losses greater than the loss threshold incurred by holders of the at least three equity investment instruments that incurred a loss are reimbursed, wherein reimbursement of losses by holders of the at least three equity investment instruments is according to the loss threshold and either depletes the loss reduction fund or all losses by holders of the at least three equity investment instruments are reimbursed from the loss reduction fund.