Self-hedging multi-layered investment system and method using internal contractual relationships

摘要

Proxy assets providing risk management capabilities are described, such as liquid interests in illiquid assets and economic indicators, without the deficiencies associated with other types of financial instruments. A proxy assets set is defined to respond to one or more indices. Each proxy asset may have a share value and a number of shares. The proxy assets can have a proxy assets set account value equal to a sum over all proxy assets of the products of the share value and the number of shares. At least one proxy asset account value per share is a function of an index. Two or more trusts including an Up-Holding trust and a Down-holding trust may hold various of the proxy assets.