Investment portfolio tracking system and method

• US 7,165,044 B1
• Filed: 10/01/1999
• Issued: 01/16/2007
• Est. Priority Date: 10/01/1999
• Status: Expired due to Fees

• Current Assignee: Summa LP Applications
• Original Assignee: Summa LP Applications
• Inventors: Chaffee, Arthur Willard
• Primary Examiner(s): Sough; Hyung Sub
• Assistant Examiner(s): Subramanian; Narayanswamy
• Application Number:
  US09/410,825
• Time in Patent Office: 2,664 Days
• Field of Search: 705/35-37,30
• US Class Current: 705/37
• 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 40/10 Tax strategies

Abstract

Accounting and financial analyses are performed for an investment portfolio to produce comprehensive reports on the performance and/or current real net worth of this investment portfolio. These reports are generated in response to a user request that is received over the Internet based on automatically based on security price data retrieved from a real-time security price reporting service and transaction records of the investment portfolio that are retrieved from one or more of the user'"'"'s trading accounts that are kept at different financial institutions. As a result, a single financial report that is representative of the collective performance of different accounts in different financial institutions can be generated.

Claims

1. A computer implemented method of producing a financial position report for an investment portfolio, comprising:

obtaining single entry transaction data records for individual transactions of the investment portfolio;

receiving user input data representing a request for a financial position report for the investment portfolio;

calculating current double entry asset, liability and equity balances for the investment portfolio as a whole using the transaction data records and current prices for investments held in the investment portfolio, wherein the sum of the portfolio asset balances equals the sum of the portfolio liability balances and the portfolio equity balances, and wherein the liability balances include balances that reflect obligations that would result if all investments of the investment portfolio were liquidated at said current prices;

generating a financial position report for the portfolio that presents the asset, liability and equity balances of the portfolio in a double entry format, wherein at least some of the asset, liability and equity balances displayed in the financial position report are associated with hyperlinks to corresponding reports supporting the associated balances;

transmitting the financial position report to the user; and

in response to receiving user input data representing user selection of one of said hyperlinks associated with one of said balances, transmitting a report to the user supporting the balance associated with the selected hyperlink.

2. The method claimed in claim 1, wherein a transaction data record comprises a date, an identifier of a security, a number of shares, a transaction price, and a transaction type.

3. The method claimed in claim 2, wherein the transaction data record further comprises a cash disbursed amount.

4. The method claimed in claim 3, wherein the transaction data record further comprises a margin borrowed amount.

5. The method claimed in claim 1, further comprising:

receiving user input comprising transaction data characterizing a hypothetical what-if transaction;

recalculating said asset, liability and equity balances for the portfolio using said transaction data records and said what-if transaction data; and

transmitting to the user said financial position report using said recalculated asset, liability and equity balances.

6. The method claimed in claim 1, wherein the asset balances include a cash balance.

7. The method claimed in claim 6, wherein the cash balance is associated with a hyperlink to a cash balance report.

8. The method claimed in claim 7, wherein the cash balance report describes cash transactions of the portfolio and a cash balance remaining after each of said cash transactions.

9. The method claimed in claim 1, wherein the asset balances include a securities current basis balance.

10. The method claimed in claim 9, wherein the securities current basis balance is associated with a hyperlink to a portfolio status report.

11. The method claimed in claim 10, wherein the portfolio status report includes current value and gain and loss data for securities currently held in the portfolio.

12. The method claimed in claim 11, wherein the current value and gain and loss data are calculated using real time price data.

13. The method claimed in claim 1, wherein the liability balances include a margin borrowed balance.

14. The method claimed in claim 13, wherein the margin borrowed balance is associated with a hyperlink to a margin borrowed balance report.

15. The method claimed in claim 14, wherein the margin borrowed balance report describes margin transactions of the portfolio and a margin borrowed balance remaining after each of said margin transactions.

16. The method claimed in claim 1, wherein the liability balances include a margin interest balance.

17. The method claimed in claim 16, wherein the margin interest balance is associated with a hyperlink to a margin interest payable report.

18. The method claimed in claim 17, wherein the margin interest payable report describes margin interest transactions of the portfolio and a margin interest balance remaining after each of said margin interest transactions.

19. The method claimed in claim 1, wherein the liability balances include a taxes payable balance.

20. The method claimed in claim 19, wherein the taxes payable balance is associated with a hyperlink to a taxes payable report that displays short-term and long-term realized and unrealized gains and losses for securities currently held in the portfolio, short-term and long-term taxes payable for realized and unrealized gains and losses for said securities, and short-term and long-term taxes paid for realized gains and losses of said securities.

21. The method claimed in claim 20, wherein the unrealized gains and losses and the short-term and long-term taxes payable for said realized and unrealized gains and losses are calculated using real time price data.

22. The method claimed in claim 21, wherein the taxes payable include federal and state taxes that are calculated in accordance with user defined tax rates.

23. The method claimed in claim 1, wherein the equity balances include a cash invested balance.

24. The method claimed in claim 23, wherein the cash invested balance is associated with a hyperlink to a cash invested report.

25. The method claimed in claim 24, wherein the cash invested report describes cash invested transactions of the portfolio and a cash invested balance remaining after each of said cash invested transactions.

26. The method claimed in claim 1, wherein the equity balances include a net worth balance.

27. The method claimed in claim 26, wherein the net worth balance is associated with a hyperlink to a net worth report.

28. The method claimed in claim 27, wherein the net worth report includes gains and losses for securities of the portfolio, said gains and losses accounting for commissions, margin interest, and taxes.

29. The method claimed in claim 28, wherein said gains and losses include unrealized gains and losses for securities currently held in the portfolio that are calculated using real time price data to provide real time unrealized gains and losses.

30. The method claimed in claim 1, wherein the balances are calculated using real time price data to provide a real time financial position report.

31. The method claimed in claim 1, wherein said current prices are obtained in response to said request from a user for the financial position report.

32. The method claimed in claim 31, wherein the request is received through the Internet.

33. The method claimed in claim 1, wherein the transaction data records are accessed from a remote server through the Internet.

34. The method claimed in claim 1, further comprising:

calculating revenue and expense balances for the investment portfolio as a whole during a period of time using the transaction data records, wherein the sum of the revenue balances less the sum of the expense balances equals the net worth after taxes of the portfolio as a whole during said period of time;

wherein said financial position report further comprises a profit and loss section presenting said revenue and expense balances and said net worth after taxes for said period of time,

wherein revenue and expense balances of the profit and loss section are associated with hyperlinks to corresponding reports supporting the respective balances, and

wherein said processing further comprises, in response to receiving user input data representing user selection of one of said hyperlinks associated with one of said revenue and expense balances, transmitting a report supporting the balance associated with the selected hyperlink.

35. The method claimed in claim 34, wherein the revenue balances include a gains and losses balance.

36. The method claimed in claim 35, wherein the gains and losses balance is associated with a hyperlink to a gains and losses balance report.

37. The method claimed in claim 36, wherein the gains and losses balance report presents gross gains and losses excluding commissions and costs.

38. The method claimed in claim 36, wherein gains and losses balance report presents net gains and losses including commissions and costs.

39. The method claimed in claim 36, wherein the said gains and losses balance report includes bought value and realized and unrealized gains and losses of the portfolio.

40. The method claimed in claim 34, wherein said revenue balances include a dividends and interest balance.

41. The method claimed in claim 40, wherein said dividends and interest balance is associated with a hyperlink to a dividends and interest balance report.

42. The method claimed in claim 41, wherein the dividends and interest balance report describes dividend and interest transactions of the portfolio during said period and a dividends and interest balance remaining after each of said dividend and interest transactions.

43. The method claimed in claim 34, wherein said expenses balances include a commissions and costs balance.

44. The method claimed in claim 43, wherein said commissions and costs balance is associated with a hyperlink to a commissions and costs balance report.

45. The method claimed in claim 44, wherein the commissions and costs balance report describes commission and cost transactions of the portfolio during said period and a commissions and costs balance remaining after each of said commission and cost transactions.

46. The method claimed in claim 34, wherein said expenses balances include a margin interest balance.

47. The method claimed in claim 46, wherein said margin interest balance is associated with a hyperlink to a margin interest balance report.

48. The method claimed in claim 47, wherein the margin interest balance report describes margin interest transactions of the portfolio during said period and a margin interest balance remaining after each of said margin interest transactions.

49. The method claimed in claim 34, wherein said expense balances include a state and federal taxes balance.

50. The method claimed in claim 49, wherein said state and federal taxes balance is associated with a hyperlink to a tax expenses report that displays short-term and long-term realized and unrealized gains and losses, and short-term and long-term tax expenses for said realized and unrealized gains and losses.

51. The method claimed in claim 50, wherein said unrealized gains and losses and said short-term and long-term tax expenses for said realized and unrealized gains and losses are calculated using real time price data to provide real time unrealized gains and losses and real time short-term and long-term tax expenses for said realized and unrealized gains and losses.

52. The method claimed in claim 50, wherein said tax expenses include federal and state taxes that are calculated in accordance with user defined tax rates.

53. The method claimed in claim 34, wherein said balances are calculated using real time price data to provide a real time profit and loss activity report.

54. The method claimed in claim 34, further comprising:

receiving user input comprising transaction data characterizing a hypothetical what-if transaction;

recalculating said asset, liability and equity balances, said revenue and expense balances, and said net worth after taxes for the portfolio using said transaction data records and said what-if transaction data; and

transmitting to the user said financial position report using said recalculated asset, liability and equity balances, said recalculated revenue and expense balances, and said recalculated net worth after taxes.

55. The method claimed in claim 1, further comprising:

calculating a performance measure indicating a rate of return for the portfolio as a whole that accounts for holding periods of individual securities currently or previously held in the portfolio using said transaction data records; and

generating a report supporting said performance measure,

wherein said financial position report further comprises said performance measure, and

wherein said performance measure is associated with a hyperlink to a corresponding report supporting the performance measure.

56. The method claimed in claim 55, wherein the performance measure is a return on securities associated with a hyperlink to a return on securities report.

57. The method claimed in claim 56, wherein the return on securities report presents gross gains and losses and gross return on investments excluding commissions and costs.

58. The method claimed in claim 56, wherein the return on securities report presents net gains and losses and net return on investments including commissions and costs.

59. The method claimed in claim 56, wherein the return on securities report includes months held, gains and losses and return on investment on a monthly and annual basis.

60. The method claimed in claim 59, wherein the return on securities report includes individual investments.

61. The method claimed in claim 60, wherein the said return on securities report includes the overall portfolio.

62. The method claimed in claim 55, wherein the performance measure is a cash return on securities associated with a hyperlink to a cash return on securities report that presents a return on cash invested.

63. The method claimed in claim 62, wherein the cash return on securities report presents gross gains and losses and gross return on investments excluding commissions and costs.

64. The method claimed in claim 62, wherein the cash return on securities report presents net gains and losses and net return on investments including commissions and costs.

65. The method claimed in claim 62, wherein the cash return on securities report includes months held, gains and losses, and return on investments on a monthly and annual basis.

66. The method claimed in claim 65, wherein the return on securities report includes the overall portfolio.

67. The method claimed in claim 55, wherein said current prices are obtained in response to a request from a user for the performance report.

68. The method claimed in claim 67, wherein said request specifies a period of time for the performance report.

69. The method claimed in claim 67, wherein said request is received through the Internet.

70. The method claimed in claim 55, wherein said transaction data records are accessed from a remote server through the Internet.

71. A programmable device for reporting financial information for an investment portfolio, the device including computer readable media storing programming code for controlling the device to perform processing comprising:

obtaining single entry transaction data records for individual transactions of the investment portfolio;

receiving a request for a financial position report for the investment portfolio;

calculating current double entry asset, liability and equity balances for the investment portfolio as a whole using the transaction data records and current prices for investments held in the investment portfolio, wherein the sum of the portfolio asset balances equals the sum of the portfolio liability balances and the portfolio equity balances, and wherein the liability balances include balances that reflect obligations that would result if all investments of the investment portfolio were liquidated at said current prices;

generating a financial position report for the portfolio that presents the asset, liability and equity balances of the portfolio in a double entry format, wherein at least some of the asset, liability and equity balances displayed in the financial position report are associated with hyperlinks to corresponding reports supporting the respective balances;

presenting the financial position report; and

in response to user selection of one of said hyperlinks associated with one of said balances, presenting a report supporting the balance associated with the selected hyperlink.

72. The device claimed in claim 71, wherein said processing further comprises:

calculating revenue and expense balances for the investment portfolio as a whole during a period of time using the transaction data records, wherein the sum of the revenue balances less the sum of the expense balances equals the net worth after taxes of the portfolio as a whole during said period of time;

wherein said financial position report further comprises a profit and loss section presenting said revenue and expense balances and said net worth after taxes for said period of time,

wherein revenue and expense balances of the profit and loss section are associated with hyperlinks to corresponding reports supporting the respective balances, and

wherein said processing further comprises, in response to user selection of one of said hyperlinks associated with one of said revenue and expense balances, presenting a report supporting the balance associated with the selected hyperlink.