SYSTEM AND METHOD FOR DERIVING LENDING RATES FOR SECURITIES IN A POOL OF INVESTMENT ASSETS

摘要

A system and method for pooling of investment funds enables a multinational corporation to cause its employee benefit plans from multiple international jurisdictions to pool their investments into a single entity, which invests in various financial products including exchange traded debt and equity securities as well as other securities. The entity is preferably structured as an offshore pooled vehicle, which may have one or more sub-funds that vary by investment objective and/or eligible investments. Each pooled vehicle is preferably organized as an Irish CCF, a Luxembourg FCP5 a Dutch FGR or other tax-transparent vehicle. The investors in such pooled vehicles and sub-funds are preferably the employee benefit plans of the multinational corporation. A banking or trust organization that is duly qualified and licensed to act under the laws of the applicable jurisdiction as a management company for the pooled vehicles will act on behalf of the applicable pooled vehicle. Assets owed by the pooled vehicle are loaned out at a suggested rate, which is derived from a calculation of a blended, manufactured dividend rate (MDR). The blended MDR is calculated on a country-by-country basis and is based upon ownership percentages of the investors within the pooled vehicles and the domicile of the investors.