Proxies for Actively Managed Funds

Abstract

Among other things, receiving public information about an actively managed fund, selecting a group of financial assets, determining a group of weights corresponding to the group of financial assets thereby determining a weighted group of financial assets, the weights being determined based only on the public information, and publishing the contents of the weighted group of financial assets, wherein an expected valuation of the weighted group of financial assets is within a threshold percentage of an expected valuation of the actively managed fund.

1 - 36 . (canceled) 
     
     
         37 . A computer implemented method involving an exchange trade fund (ETF), the method comprises:
 receiving information about an actively managed fund and a selected group of financial assets and a determined group of weights for the group of financial assets, the weights being determined based only on publically available information of the actively managed fund to provide a proxy basket;   determining by one or more computers an existence of a relatively large spread between a price of the ETF and the value of the proxy basket; and   causing by the one or more computers an action to occur based on the determined existence of the relatively large spread.   
     
     
         38 . The method of  claim 37  wherein the actively managed fund is a mutual fund. 
     
     
         39 . The method of  claim 37 , further comprises:
 causing by the one or more computers transmission of an order to buy the ETF shares;   causing by the one or more computers transmission of an order to short-sell the selected group of financial assets in the proxy basket in share proportions that correspond to the weights, when the price of ETF shares is less than the value of the weighted group of financial assets in the proxy basket.   
     
     
         40 . The method of  claim 39 , further comprises:
 causing by the one or more computers a redemption of the ETF shares for the selected group of financial assets in the proxy basket in share proportions that correspond to the weights.   
     
     
         41 . The method of  claim 37  wherein receiving information, comprises:
 receiving public information that include returns data of the actively managed fund, with the public information excluding information that reveals risk exposure of a current composition of an actual creation unit of the actively managed fund. 
 
     
     
         42 . The method of  claim 37  wherein the relatively large spread is related to an amount that allowed the method to be profitable. 
     
     
         43 . The method of  claim 37  wherein the contents of the proxy basket are selected from the group consisting of securities or portfolios of securities, exchange traded funds, hedge funds, derivatives, commodities futures, listed commodity pools, and listed commodity funds. 
     
     
         44 . The method of  claim 37  wherein a large spread is related to a valuation of the creation basket and a valuation of the ETF which difference is sufficient to make method profitable. 
     
     
         45 . The method of  claim 37  further comprising:
 determining by one or more computers an existence of a relatively large spread between a current price of ETF shares and the current NAV of the actively managed fund to initiate causing of the action. 
 
     
     
         46 . A method involving an exchange trade fund (ETF), comprises:
 determining by one or more computers contents of a proxy basket comprising a group of financial assets and a determined group of weights that corresponding to the group of financial assets, the weights being determined based only on public information about an actively managed fund;   publishing by the one or more computers contents of the basket;   receiving from a participant the proxy basket; and   delivering to the participant shares in the ETF in exchange for the proxy basket.   
     
     
         47 . The method of  claim 46  wherein the actively managed fund is a mutual fund. 
     
     
         48 . The method of  claim 46  further comprising:
 publishing information about the actively managed fund, with the information being public information that includes returns data of the actively managed fund, with the public information excluding information that reveals risk exposure of a current composition of an actual creation unit of the actively managed fund. 
 
     
     
         49 . The method of  claim 46  wherein the contents of the proxy basket are selected from the group consisting of securities or portfolios of securities, exchange traded funds, hedge funds, derivatives, commodities futures, listed commodity pools, and listed commodity funds. 
     
     
         50 . A method comprises:
 determining by one or more computers contents of a proxy basket comprising a group of financial assets and a determined group of weights that corresponding to the group of financial assets, the weights being determined based only on public information about an actively managed fund;   publishing by the one or more computers contents of the basket;   receiving from a participant shares in the ETF; and   delivering to the participant the proxy basket in exchange for the shares in the ETF.   
     
     
         51 . The method of  claim 50  wherein the actively managed fund is a mutual fund. 
     
     
         52 . The method of  claim 50  further comprising:
 publishing information about the actively managed fund, with the information being public information that includes returns data of the actively managed fund, with the public information excluding information that reveals risk exposure of a current composition of an actual creation unit of the actively managed fund. 
 
     
     
         53 . The method of  claim 50  wherein the contents of the proxy basket are selected from the group consisting of securities or portfolios of securities, exchange traded funds, hedge funds, derivatives, commodities futures, listed commodity pools, and listed commodity funds.