Offshootfund investment process

摘要

A process for allowing an investor within the structure of a Crossfund to purchase simultaneously a separate fund which is specialized for purchasing future contracts and other options to hedge against currency movement during the rights exchange period of Crossfund is disclosed (see FIG. 3). The innovative process includes the establishment of the Offshootfund with the issuance of Crossfund. An investor owns 50% of each Offshootfund portfolio (32,28). One portfolio is dollar-denominated and the other is euro-denominated. The process illustrates how Offshootfund ownership is determined on a 50% basis an improvement over Crossfund calculations, where a single innovative exchange of rights is done. A sharing of risk this way provides a protection for the investor. The process permits the manager to purchase future contracts and option contracts against currency movements. At rights reversal of Crossfund, there is the calculation to determine settlement from either the dollar-denominated portfolio or the euro-denominated portfolio.