Method for monitoring cash reserves and determining potential investments for purchase while managing individual or multiple investment portfolios

• US 20050273411A1
• Filed: 08/23/2004
• Published: 12/08/2005
• Est. Priority Date: 06/03/2004
• Status: Abandoned Application

• Current Assignee: Jeffrey D. Voudrie
• Original Assignee: Jeffrey D. Voudrie
• Inventors: Voudrie, Jeffrey D.
• Application Number:
  US10/924,299
• Publication Number:
  US 20050273411A1
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

It is common in the art to utilize various fundamental or technical indicators in deciding when to purchase a security and this is typically a manual process. The present invention automates this process. The present invention defines a target portfolio for a client that details the securities and respective percentages that should be invested in each security. The system of the present invention continually compares the target portfolio to the client'"'"'s actual portfolio to determine when there is excess cash available to invest. When there is excess cash available, the system generates a list of securities and amounts for that account each day that should be purchased based on the differences between the actual and target portfolios. The price movements of each security on a buy list are then continuously monitored, the various fundamental or technical indicators tracked, and the user alerted when the fundamental or technical indicators signal a buy for that specific security. The system of the present invention then presents the user with a list of accounts that have cash available and the amounts that need to be invested in that security. From there the user can execute any desired trades.

Claims

1. A method for identifying which investments should be purchased for use in a portfolio management system wherein;

each account can be assigned a buy risk tolerance level;

each account has an associated target portfolio which defines the securities and amount of each that should be owned including a target amount for cash and/or money market holdings;

said target portfolio can be different for each account;

said target portfolio is automatically adjusted based on the buy risk tolerance associated with the account;

an actual portfolio for each account details the investments and amount of each currently owned;

upon the sale of an investment in said actual portfolio, the proceeds are moved into a cash or a money market;

on a regular basis determined by the user, an automated buy system compares the available cash market balance in said actual portfolio to the targeted cash market level in said target portfolio to determine if funds are available to invest;

when excess funds are available to invest, said automated buy system compares said target portfolio to said actual portfolio and generates a target security buy list detailing the securities that should be purchased and the amount of each for that account.

2. The method for identifying which investments should be purchased in a portfolio management system of claim 1 wherein a system-wide target security buy list can be aggregated based on the account-level target security buy lists.

3. The method for identifying which investments should be purchased in a portfolio management system of claim 2 wherein the securities allowed on said target security buy list can be filtered to meet additional portfolio allocation requirements to ensure that the recommended purchase and/or amount would not overweight the actual portfolio in any particular security, class of securities and/or category of securities.

4. The method for identifying which investments should be purchased in a portfolio management system of claim 2 wherein the securities allowed on the target security buy list can be filtered to meet additional portfolio allocation requirements to ensure that the recommended purchase and/or amount would not overweight the target portfolio in any particular security, class of securities and/or category of securities.

5. The method for identifying which investments should be purchased in a portfolio management system of claim 2 wherein said automated buy system can then monitor, in real-time, each security on the target security buy list to determine if user-defined criteria such as various fundamental and/or technical indicators are met and generate a buy alert.

6. The method for identifying which investments should be purchased in a portfolio management system of claim 2 wherein

when a buy alert occurs, said automated buy system will present the user with the name of the security for which the alert was signaled and a list of accounts the system has determined need said security and the amount thereof;

where the user can change and/or modify the amount to purchase of said alerted security and execute the purchase transactions individually or en-mass;

where the user can select the accounts for which purchase transactions should occur.

7. The method for identifying which investments should be purchased in a portfolio management system of claim 6 wherein said automated buy system can be set to automatically execute purchase transactions as they occur.

8. The method for identifying which investments should be purchased in a portfolio management system of claim 7 wherein said automated buy system would track the excess cash available to purchase securities and add to and/or subtract from that balance in real-time based on purchases and/or sales that occur within the account.

9. A system and method for actively managing an investment portfolio and identifying which investments should be purchased wherein;

each account can be assigned a buy risk tolerance level;

each account has an associated target portfolio which defines the securities and amount of each that should be owned including a target amount for cash and/or money market holdings;

said target portfolio can be different for each account;

said target portfolio is automatically adjusted based on the buy risk tolerance associated with the account;

an actual portfolio for each account details the investments and amount of each currently owned;

upon the sale of an investment in said actual portfolio, the proceeds are moved into a cash or a money market;

on a regular basis determined by the user, an automated buy system compares the available cash market balance in said actual portfolio to the targeted cash market level in said target portfolio to determine if funds are available to invest;

when excess funds are available to invest, said automated buy system compares said target portfolio to said actual portfolio and generates a target security buy list detailing the securities that should be purchased and the amount of each for that account;

a system-wide target security buy list can be aggregated based on the account-level target security buy lists;

where said automated buy system can then monitor real-time each security on the target security buy list to determine if user-defined criteria such as various fundamental and/or technical indicators are met and generate a buy alert;

when a buy alert occurs, said automated buy system will present the user with the name of the security for which the alert was signaled and a list of accounts the system has determined need said security and the amount thereof;

where the user can change and/or modify the amount to purchase of said alerted security and execute the purchase transactions individually or en-mass;

where the user can select the accounts for which purchase transactions should occur;

where automated buy system can be set to automatically execute purchase transactions as they occur;

where said automated buy system would track the excess cash available to purchase securities and add to and/or subtract from that balance in real-time based on purchases and/or sales that occur within the account.

10. The system and method for actively managing an investment portfolio and identifying which investments should be purchased of claim 9 wherein the securities allowed on said target security buy list can be filtered to meet additional portfolio allocation requirements to ensure that the recommended purchase and/or amount would not overweight the actual portfolio in any particular security, class of securities and/or category of securities.

11. The system and method for actively managing an investment portfolio and identifying which investments should be purchased of claim 9 wherein the securities allowed on the target security buy list can be filtered to meet additional portfolio allocation requirements to ensure that the recommended purchase and/or amount would not overweight the target portfolio in any particular security, class of securities and/or category of securities.