Goal-directed financial asset management system

• US 5,126,936 A
• Filed: 09/01/1989
• Issued: 06/30/1992
• Est. Priority Date: 09/01/1989
• Status: Expired due to Term

• Current Assignee: Champion Securities Company LLC
• Original Assignee: Champion Securities Company LLC
• Inventors: Champion, Robert R., Twist, Basil R. Jr.
• Primary Examiner(s): Smith, Jerry
• Assistant Examiner(s): LO, ALLEN
• Application Number:
  US07/402,498
• Time in Patent Office: 1,033 Days
• Field of Search: 364/408, 364/401
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• 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

Abstract

A data processing apparatus and method controls and implements a goal-directed financial assets management system. The operative system receives investor deposits at selected levels of correspondence to established capital markets. A proportionality factor, or "market multiple" MM, is established as a measure of correspondence between the account and each market or asset of interest. The operative system periodically enters new account data and adjusts the individual accounts in response thereto. The system determines a net position change which is translated into aggregate purchase/sale orders of various market index futures contracts or other capital instruments. The system automatically adjusts the risk exposure in any asset category to prevent its reaching an excessive level. As a result, an account can never lose more than the amount deposited. The data processing system provides efficient operation and low transaction fees to the participating investors.

Claims

1. A data processing system for administering a program to provide a future return commensurate with a selected degree of correspondence to a capital market, said system comprising:

means for receiving and storing data on accounts from participating investors, including for each account a selected proportionality factor, MM, indicative of the degree of correspondence between a valuation of said account and valuation of said capital market;

means for receiving adjustment requests from said participating investors for said accounts;

means responsive to said adjustment requests for determining an asset transaction in said capital market wherein said asset transaction is proportional to a net aggregate value of all said adjustment requests for said asset; and

means for adjusting said participating investor accounts responsive to said asset transaction and said adjustment requests.

2. The system of claim 1, wherein said capital market valuation is characterized by an index value of selected assets on said capital market.

3. The system of claim 2, wherein said means responsive to said adjustment requests includes means for determining a net purchase or sale of assets selected from the group consisting of futures contracts, options, common stocks, bonds, currencies and commodities.

4. The system of claim 3, wherein said data processing system is a stored program controlled digital computer that iteratively adjusts each investor account, pursuant to said asset transactions.

5. The system of claim 4, wherein said means for receiving adjustment requests includes means for accepting deposits or withdrawals for each investor account.

6. The system of claim 5, wherein said investor account data includes current and past valuations of said account.

7. A data processing method for administering a program to provide an investment account a rate of return commensurate with an established capital market, said method comprising the steps of:

a. Receiving and storing account parameters for said investment account, including an account asset allocation and a selected proportionality factor relating the rate of return between said investment account to said established capital market;

b. Receiving on a periodic basis a market index value (IDX), wherein said market index value represents a valuation of assets for said established capital market;

c. Receiving adjustments to said account parameters and determining a position change for said investment accounts based thereon;

d. Determining a total net position change for all participating investors at said market index value (IDX).

e. Adjusting said account parameters responsive to said position change for said investment account.

8. The method of claim 7, wherein said total net position change for all investor accounts is translated into purchase or sale-orders of assets selected from the group consisting of futures contracts, options, common stocks, bonds, currencies and commodities.

9. The method of claim 8, wherein said receiving and storing step (a) includes maintaining said MM through position changes in said account.

10. The method of claim 9, wherein said receiving and storing step (a) further comprises deposits or withdrawals (CF).

11. In combination in a data processing system for supervising an investment group of plural investment accounts, each account having investment parameters including an account balance and a proportionality factor, said data processing system comprising:

market data entry means for receiving a current market index representative of a periodic valuation of a selected market;

account data entry means for receiving account deposits, withdrawals and changes to said proportionality factor;

means for determining an investment group investment position in the selected market in response to an aggregate adjustment to said accounts;

data processing means responsive on a periodic basis to said current market index deposits, withdrawals or changes in said proportionality factor for adjusting each account so that an account valuation corresponds to the selected market index;

storage means for recording net changes in account balances and said investment group investment position; and

output means for interactive communication to said market and system participants.

12. In combination in the system of claim 11, wherein said proportionality factor is a factor applied to each said investment account indicative of the arithmetic relationship between an account valuation and a valuation of the selected market.

13. In combination in the system of claim 11, wherein said market index corresponds to an asset price as transacted on said selected market.

14. In combination in the system of claim 13, wherein said asset price corresponds to futures contracts on said selected market.

15. In combination in a data processing system for managing plural accounts to provide for each account a rate of return commensurate to an established form of capital, comprising;

a data entry means for receiving and storing information on each said account including an account balance and a proportionality factor relating the rate of return between the account balance and the established form of capital, a customer request entry means for entering changes to the account information including deposits, withdrawals and changes to said proportionality factor for said account, a data processing means for determining an investment position contingent on an aggregation of said account information, a market communication means to effect a transaction pursuant to said investment position, and an automatic adjustment means to adjust said accounts corresponding to said transaction and said proportionality factor pursuant to preset limits regarding an exposure level for said account in said form of capital.

16. The system of claim 15 wherein said proportionality factor is a market multiple, MM(I), providing a long or short market relationship between the valuation of said form of capital on a market and the valuation of said account. contracts, options, common stocks, bonds, currencies and commodities.

17. The system of claim 16 wherein said automatic adjustment means compares an effective MM(I) for said account to a preset limit and effects a transaction that adjusts said account so that said effective MM(I) for the account is below said present limit for said account.

18. The system of claim 15 wherein said transaction is effected in assets selected from the group consisting of futures contracts, options, common stocks, bonds currencies and commodities.