Mutual fund and method for allocating assets in a mutual fund

• US 8,229,828 B1
• Filed: 09/21/2011
• Issued: 07/24/2012
• Est. Priority Date: 01/18/2005
• Status: Active Grant

• Current Assignee: United Services Automobile Association
• Original Assignee: United Services Automobile Association
• Inventors: Wester, Stuart Houston
• Primary Examiner(s): TINKLER, MURIEL S
• Application Number:
  US13/239,174
• Time in Patent Office: 307 Days
• Field of Search: 705/35, 705/36.R, 705/37, 705/38, 705/39, 705/40, 705/41, 705/42, 705/43, 705/44
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• 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

A system and method of investing and reallocating fund assets include investing assets in a first class in a fund having substantially a single asset class at any given time. The system and method further include determining whether a signal is given to reallocate the assets to a second asset class different from the first asset class, and reallocating the assets in the fund to the second asset class if the signal is given to reallocate the assets. In embodiments of the invention, the fund is diversified among different asset classes over time rather than at any instant.

Claims

1. A computer implemented method of investing and reallocating fund assets, the method comprising:

investing assets in a first asset class in a fund having a single asset class at any given time;

determining, by a computer system, whether a signal is given to reallocate the assets to a second asset class different from the first asset class; and

reallocating, by the computer system, the assets in the fund to the second asset class if the signal is given to reallocate the assets, wherein the fund is diversified among different asset classes over time.

2. The method of claim 1 further comprising:

determining that the signal is a buy signal for stocks using a stock model; and

investing all the assets of the fund in stocks.

3. The method of claim 2 wherein the stocks include at least one of individual stocks or stock-based exchange-traded funds.

4. The method of claim 1 further comprising:

determining that the signal is a buy signal for bonds using a bond model; and

investing all the assets of the fund in bonds.

5. The method of claim 4 wherein the bonds include at least one of individual bonds or bond-based exchange-traded funds.

6. The method of claim 1 further comprising:

determining that the signal is neither a buy signal for stocks using a stock model nor a buy signal for bonds using a bond model; and

investing all the assets of the fund in cash equivalents.

7. The method of claim 6 wherein the cash equivalents include money market instruments.

8. The method of claim 1 wherein the signal is given on at least one of a cyclical basis or an event-driven basis.

9. The method of claim 8 wherein the cyclical basis comprises at least one of a daily, weekly, monthly, quarterly, and irregular cycle.

10. The method of claim 1 wherein the single class asset can be selected from a plurality of asset classes including stocks, bonds, and cash equivalents.

11. The method of claim 1 wherein the fund having the single asset class at any given time comprises about 95% or more of the assets in the single class.

12. A computer system for investing and reallocating fund assets, the system comprising one or more computers configured to:

invest assets in a first asset class in a fund having a single asset class at any given time;

determine, by the one or more computers, whether a signal is given to reallocate the assets to a second asset class different from the first asset class; and

reallocate, by the one or more computers, the assets in the fund to the second asset class if the signal is given to reallocate the assets, wherein the fund is diversified among different asset classes over time.

13. The system of claim 12 wherein the one or more computers are further configured to:

determine that the signal is a buy signal for stocks using a stock model; and

invest all the assets of the fund in stocks.

14. The system of claim 12 wherein the one or more computers are further configured to:

determine that the signal is a buy signal for bonds using a bond model; and

invest all the assets of the fund in bonds.

15. The system of claim 12 wherein the one or more computers are further configured to:

determine that the signal is neither a buy signal for stocks using a stock model nor a buy signal for bonds using a bond model; and

invest all the assets of the fund in cash equivalents.

16. The system of claim 12 wherein the signal is given on at least one of a cyclical basis or an event-driven basis.

17. The system of claim 12 wherein the single class asset can be selected from a plurality of asset classes including stocks, bonds, and cash equivalents.

18. The system of claim 17 wherein the stocks include at least one of individual stocks or stock-based exchange-traded funds, the bonds include at least one of individual bonds or bond-based exchange-traded funds, and the cash equivalents include money market instruments.

19. The system of claim 17 wherein the money market instruments comprise investment-grade, U.S. dollar-denominated debt securities that have remaining maturities of one year or less.

20. The system of claim 12 wherein the fund having the the single asset class at any given time comprises about 95% or more of the assets in the single class.