System and method for providing customizable investment tools

• US 20060015425A1
• Filed: 07/15/2004
• Published: 01/19/2006
• Est. Priority Date: 07/15/2004
• Status: Active Grant

• Current Assignee: Kent F. Brooks
• Original Assignee: Kent F. Brooks
• Inventors: Brooks, Kent F.
• Granted Patent: US 7,672,889 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/10 Tax strategies

Abstract

Computer-implemented methods and systems to help investors determine the fair value and ratings of assets (such as equity or debt instruments, etc.), and thereby make better informed investment decisions, through: automatically consolidating selected asset historical performance, forecasting and rating information; automatically computing asset valuations based on default and/or customized valuation parameters; and automatically determining asset under or over valuation.

Claims

1. A computer-implemented method, comprising determining a present fair value of an asset by consolidating selected (i) historical performance data regarding the asset, (ii) forecast information regarding the asset, and (iii) investment information service provider valuation information regarding the asset, all according to valuation parameters aligned with an investor profile;

and presenting the fair value in a format reflecting an over/under valuation of the asset as compared to its price.

2. The computer-implemented method of claim 1, wherein the present fair value is determined according to one or more valuation models.

3. The computer-implemented method of claim 2, wherein the present fair value is determined according to those of the one or more valuation models selected by a user.

4. The computer-implemented method of claim 1, wherein the present fair value is determined and presented in response to a single user interaction with a computer system.

5. The computer-implemented method of claim 4, wherein the single user interaction with the computer system comprises a selection of a user interface element presented in a graphical user interface.

6. The computer-implemented method of claim 5, wherein the format in which the fair value is presented comprises a quick valuation quote which includes an identification of the asset, its present price and the fair value.

7. The computer-implemented method of claim 5, wherein the format in which the fair value is presented comprises a detailed valuation quote which includes an identification of the asset, its present price and at least a summary of parameter values used to compute the fair value.

8. The computer-implemented method of claim 5, wherein the format in which the fair value is presented comprises a portfolio valuation summary of which the asset is one component.

9. The computer-implemented method of claim 2, wherein the investor profile comprises one or more of:

risk premium preferences and tax treatment preferences.

10. The computer-implemented method of claim 1, wherein the present fair value is determined according to a valuation model in which a present value for the asset at a risk-adjusted rate of return is multiplied by a total of (i) an expected future price of the asset upon expiration of a holding period, and (ii) a series of individual dividend cash flows for the asset expected during the holding period, (iii) less a present price of the asset.

11. The computer-implemented method of claim 1, further comprising evaluating the present fair value of the asset through comparisons with fair values of other assets and presenting evaluation results in accordance therewith.

12. The computer-implemented method of claim 11, wherein the evaluation results are presented as a percentile position relative to a grouping of similar assets.

13. The computer-implemented method of claim 11, wherein the evaluation results are presented in relation to a distribution of results obtained for a grouping of similar assets.

14. The computer-implemented method of claim 1, further comprising comparing the present fair value of the asset as determined according to a first valuation model with other fair values for the asset determined according to other valuation models and presenting results for each of the present fair value determinations.

15. The computer-implemented method of claim 1, further comprising determining an historical fair value for the asset using historical performance information for the asset as one or more inputs to a valuation model and presenting the historical fair value as so determined.

16. The computer-implemented method of claim 15, wherein the valuation model used to determine the historical fair value is also used to determine the present fair value of the asset.

17. The computer-implemented method of claim 1, further comprising presenting a rate of return distribution graph configured to indicate a rate of return distribution for an entire asset class and annotated to reflect an expected rate of return for the asset based on the present fair value.

18. A method, comprising computing a funds flow momentum index for a selected asset class, the funds flow momentum index being a ratio of a percentage of net inflows/outflows to/from the asset class for a specified time period and an historical percentage net inflow/outflow averages to/from the asset class for the specified time period, and presenting results of the funds flow momentum index computation.

19. The method of claim 18, wherein the funds flow momentum index is presented as one or more of:

a chart, or a graph.

20. The method of claim 18, wherein the asset class comprises one of:

a mutual fund, an equity security, a debt security, an industry sector, a market, or a money market fund.

21. A user interface for a computer-based process, the user interface comprising one or more screens configured to display a present fair value of an asset, the present fair value computed according to a valuation model that consolidates selected (i) performance data regarding the asset, (ii) forecast information regarding the asset, and (iii) investment information service provider valuation information regarding the asset, all according to valuation parameters aligned with an investor profile.

22. The user interface of claim 21, wherein the valuation model further determines an over/under valuation of the asset as compared to its price.

23. The user interface of claim 21, wherein the present fair value is presented in a format reflecting a comparison with an overall population of similar fair values for similar assets.

24. The user interface of claim 23, wherein the present fair value is presented in a format reflecting an over/under valuation of the asset as compared to its price.

25. A computer system, comprising a computer processing engine and a set of computer readable instructions accessible by said computer processing engine, which instructions when executed by said processing engine cause said processing engine to compute a present fair value for an asset by simulating buying, holding, selling, and paying taxes on proceeds derived from the asset over a defined holding period, all according to user-configurable parameters that collectively define an investment profile having an associated risk premium.

26. The computer system of claim 25, wherein the instructions further cause said processing engine to compare the present fair value for the asset with other fair values for the asset computed according to other valuation models.

27. The computer system of claim 26, wherein the instructions are configured to cause the processing engine to compute the present fair value in response to a single user interaction with said computer system.

28. The computer system of claim 26, wherein the computer system is communicatively coupled to one or more other computer systems from which information used to computer the present fair value of the asset is obtained.

29. The computer system of claim 28, wherein the computer system is communicatively coupled to the one or more other computer systems via the Internet.

30. The computer system of claim 25, wherein the instructions are configured to permit a user of the computer system to selectively utilize alternate valuation parameter statistical sources for the computation.