System, method and computer program product for selecting and weighting a subset of a universe to create an accounting data based index and portfolio of financial objects
First Claim
1. A method, executed by at least one processor of at least one data processing system, comprising:
- creating, by the at least one processor, an accounting data based index (ADBI) based on at least one accounting data comprising;
selecting, by the at least one processor based on user input, a universe of financial objects,selecting, by the at least one processor based on user input, a subset of said universe based on said at least one accounting data substantially independent of price to obtain said ADBI; and
weighting, by the at least one processor based on user input, the financial objects in said ADBI according to a measure of scale substantially independent of price of an entity associated with each financial object in said ADBI; and
creating, by the at least one processor, a portfolio of financial objects based on said ADBI.
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Accused Products
Abstract
A system, method and computer program product creates an index based on accounting based data, as well as a portfolio of financial objects based on the index where the portfolio is weighted according to accounting based data. A passive investment system may be based on indices created from various metrics. The indexes may be built with metrics other than market capitalization weighting, price weighting or equal weighting. Non-financial metrics may also be used to build indexes to create passive investment systems. Additionally, a combination of financial non-market capitalization metrics may be used along with non-financial metrics to create passive investment systems. Once the index is built, it may be used as a basis to purchase securities for a portfolio. Specifically excluded are widely-used capitalization-weighted indexes and price-weighted indexes, in which the price of a security contributes in a substantial way to the calculation of the weight of that security in the index or the portfolio, and equal weighting weighted indexes. Valuation indifferent indexes avoid overexposure to overvalued securities and underexposure to undervalued securities, as compared with conventional capitalization-weighted and price-weighted.
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Citations
27 Claims
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1. A method, executed by at least one processor of at least one data processing system, comprising:
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creating, by the at least one processor, an accounting data based index (ADBI) based on at least one accounting data comprising; selecting, by the at least one processor based on user input, a universe of financial objects, selecting, by the at least one processor based on user input, a subset of said universe based on said at least one accounting data substantially independent of price to obtain said ADBI; and weighting, by the at least one processor based on user input, the financial objects in said ADBI according to a measure of scale substantially independent of price of an entity associated with each financial object in said ADBI; and creating, by the at least one processor, a portfolio of financial objects based on said ADBI. - View Dependent Claims (2, 3, 4, 5, 6)
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7. A method, executed by at least one processor of at least one data processing system, comprising:
creating, by the at least one processor based on user input, an accounting data based index (ADBI), based on at least one accounting data comprising; selecting, by the at least one processor based on user input, a universe of financial objects, selecting, by the at least one processor based on user input, a subset of said financial objects of said universe, selecting, by the at least one processor based on user input, a plurality of said financial objects of said subset based upon at least one accounting data substantially independent of price to obtain constituent financial objects of said ADBI; and weighting, by the at least one processor based on user input, said plurality of said financial objects comprising said constituent financial objects of said ADBI based upon at least one measure of scale substantially independent of price of an entity associated with each said constituent financial object of said ADBI. - View Dependent Claims (8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27)
Specification