"The Safest Way to Bank that isn't a Bank at All"
(Principal Deposited TreasuryDirect.Gov)
PARTNER & LICENSING OPPORTUNITIES
"The Safest Way to Bank that isn't a Bank at All"
(Principal Deposited TreasuryDirect.Gov)
PARTNER & LICENSING OPPORTUNITIES
ABSTRACT
A system and method for mass market hedge fund investing is proposed that preferably works in conjunction with the U.S. Treasury's Treasury Direct program for direct investment in U.S. Government securities. A primary investment in a principal-guaranteed, fixed term financial instrument, such as U.S. Government securities, including U.S. Notes, Bonds and Treasury Inflation-Protected Securities (TIPS) having principal linked to the Consumer Price Index, wherein the principal is guaranteed to the extent of the full faith and credit of the U.S. Government, generates an interest income stream. The interest stream is electronically diverted to a separate account within an aggregated pool invested in a hedge fund over a predetermined time horizon. The fund is preferably run by an experienced chief portfolio strategist and a money-management team."
"In a preferred embodiment, at inception the Investor selects both a time horizon for securities under the U.S. Treasury Direct (USTD) program and for the interest stream generated and used to increase his hedge fund holdings. Under the USTD program, individual investors can set up an account and purchase electronic securities directly from the U.S. Treasury. Treasury Direct account holders may purchase 4, 13, and 26-Week Treasury Bills, 2 3, 5, and 10-Year Notes, and 5, 10, and 20-Year TIPS. 30-Year Bonds will also be available when they are re-introduced by Treasury. Semiannual interest and final maturity payments are sent through the Automated Clearing House (ACH) network to the Investor's designated financial institution account. Interest and maturity payments may be sent to two different locations, depending upon the Investor's investment needs. The time horizon for the interest investment stream can be coordinated with the maturity date of the respective treasury that the Investor initially chooses. The Investor can plan with exactness for the timely payout of his guaranteed principal portion from the U.S. Government as well as the monies invested with the hedge fund or other asset class."