Distribution of cash deposits and withdrawals in multi-style managed client investment accounts

• US 7,822,667 B1
• Filed: 02/25/2003
• Issued: 10/26/2010
• Est. Priority Date: 02/25/2003
• Status: Active Grant

• Current Assignee: Tegra118 Wealth Solutions, Inc.
• Original Assignee: Checkfree Corporation (Fiserv Incorporated)
• Inventors: Ponce, Danette Kay, Derstine, Heidi Renee, Smith, Charles Raymond III, Zyvith, Lavinia Shao-Hui, Ristovic, Mirjana, Gonzales, Reo A., Everett, Michael John
• Primary Examiner(s): Kalinowski; Alexander
• Assistant Examiner(s): JOHNSON, GREGORY L
• Application Number:
  US10/372,709
• Time in Patent Office: 2,800 Days
• Field of Search: None
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

An investment account is managed having associated assets, including shares of different securities, transacted in accordance with a plurality of different investment styles. A cash deposit into such a multi-style investment account and a request for a cash withdrawal from the multi-style investment account are handled differently but efficiently across the different investment styles in the investment account. When cash is deposited into the investment account, the cash deposit is placed into a temporary “cash bucket” in the investment account common across different investment styles. The cash is then distributed individual “cash buckets” each associated with an investment style in the investment account in accordance with a selected cash deposit allocation. When cash is to be withdrawn from the investment account, the cash amounting to the requested amount from individual “cash buckets” each associated with an investment style in the investment account is withdrawn in accordance with a selected cash withdrawal allocation. As a result, the cash can be deposited into the investment account or withdrawn from the investment account with proper allocation across different investment styles.

Claims

1. A method, comprising:

receiving a request for a withdrawal of an amount of cash from a single investment account comprising a plurality of investment styles, including a first investment style and a second investment style, wherein each investment style includes a respective plurality of assets, including a respective cash bucket for holding any cash, wherein the investment account is managed with a model that specifies an asset allocation across the plurality of investment styles, wherein the first investment style is overweighted with respect to the model;

subsequent to receiving the request, instructing the first investment style to raise a desired amount of cash, wherein one or more trades of one or more securities are generated for the first investment style to raise the desired amount of cash for the respective cash bucket of the first investment style; and

automatically performing in accordance with the received request, withdrawal collection of the requested amount of cash from the investment account by first performing withdrawal of cash from the respective cash bucket of the overweighted first investment style to reduce the overweighting with respect to the model, and then performing respective withdrawals of cash from at least the respective cash buckets of the first investment style and the second investment style, wherein a respective amount of cash withdrawn from the respective cash buckets of the first investment style and the second investment style is based upon the model that specifies the asset allocation across the plurality of investment styles,

wherein the prior steps are performed by one or more computers associated with a portfolio management system.

2. The method of claim 1, wherein the asset allocation comprises a model cash allocation and a model asset allocation, and wherein the withdrawal collection is performed in accordance with the model cash allocation or the model asset allocation.

6. The method of claim 1, wherein the model is a first model, wherein the asset allocation is a first asset allocation, wherein the first investment style is associated with a second model that specifies a second asset allocation within the first investment style, and wherein prior to automatically performing withdrawal collection, the method further comprises:

rebalancing one or more securities within the first investment style according to the second model,

wherein the prior step is performed by one or more computers associated with the portfolio management system.

7. The method of claim 1, wherein the model specifies proportions of cash across at least the first investment style and the second investment style, and wherein the respective amount of cash withdrawn from the first investment style and the second investment style is based upon the proportions specified by the model.

13. The method of claim 1, wherein the request for the withdrawal is received from an overlay manager or investor associated with the single investment account.

14. The method of claim 1, wherein each of the plurality of investment styles is managed by a respective money manager.

15. The method of claim 6, wherein the generated one or more trades are associated with rebalancing the one or more securities.

3. A system, comprising:

a database configured to store information associated with at least a single investment account comprising a plurality of investment styles, including a first investment style and a second investment style, wherein each investment style includes a respective plurality of assets, including a respective cash bucket for holding any cash, wherein the investment account is managed with a model that specifies an asset allocation across the plurality of investment styles, wherein the first investment style is overweighted with respect to the model; and

a processor configured to access the database and configured to;

receive a request for a withdrawal of an amount of cash from the investment account, instruct,

subsequent to receiving the request, the first investment style to raise a desired amount of cash, wherein one or more trades of one or more securities are generated for the first investment style to raise the desired amount of cash for the respective cash bucket of the first investment style, and

automatically perform, based on the request, withdrawal collection of the requested amount of cash from the investment account by first performing withdrawal of the first asset cash from the respective cash bucket of the overweighted first investment style to reduce the overweighting with respect to the model, and then performing respective withdrawals of cash from at least the respective cash buckets of the first investment style and the second investment style, wherein a respective amount of cash withdrawn from the first investment style and the second investment style is based upon the model that specifies the asset allocation across the plurality of investment styles.

4. The system of claim 3, wherein the asset allocation comprises a model cash allocation and a model asset allocation, and wherein the withdrawal collection is performed by the processor in accordance with the model cash allocation or the model asset allocation.

8. The system of claim 3, wherein the model is a first model, wherein the asset allocation is a first asset allocation, wherein the first investment style is associated with a second model that specifies a second asset allocation within the first investment style, and wherein prior to automatically performing withdrawal collection, the processor is further configured to:

rebalance one or more securities within the first investment style according to the second model.

9. The system of claim 3, wherein the model specifies proportions of cash across at least the first investment style and the second investment style, and wherein the respective amount of cash withdrawn from the first investment style and the second investment style is based upon the proportions specified by the model.

16. The system of claim 3, wherein the request for the withdrawal is received from an overlay manager or investor associated with the single investment account.

17. The system of claim 3, wherein each of the plurality of investment styles is managed by a respective money manager.

18. The system of claim 8, wherein the generated one or more trades are associated with rebalancing the one or more securities.

5. A system, comprising:

means for receiving a request for a withdrawal of an amount of a first asset cash from a single investment account comprising a plurality of investment styles, including a first investment style and a second investment style, wherein each investment style includes a respective plurality of assets, including a respective cash bucket for holding any cash, wherein the investment account is managed with a model that specifies an asset allocation across the plurality of investment styles, wherein the first investment style is overweighted with respect to the model;

means for instructing, subsequent to receiving the request, the first investment style to raise a desired amount of cash, wherein one or more trades of one or more securities are generated for the first investment style to raise the desired amount of cash for the respective cash bucket of the first investment style; and

means for automatically performing, in accordance with the received request, withdrawal collection of the requested amount of cash from the investment account by first performing withdrawal of cash from the respective cash bucket of the overweighted first investment style to reduce the overweighting with respect to the model, and then performing respective withdrawals of cash from at least the respective cash buckets of the first investment style and the second investment style, wherein a respective amount of cash withdrawn from the respective cash buckets of the first investment style and the second investment style is based upon the model that specifies the asset allocation across the plurality of investment styles.

10. The system of claim 5, wherein the asset allocation comprises a model cash allocation and a model asset allocation, and wherein the withdrawal collection is performed in accordance with the model cash allocation or the model asset allocation.

11. The system of claim 5, wherein the model is a first model, wherein the asset allocation is a first asset allocation, wherein the first investment style is associated with a second model that specifies a second asset allocation within the first investment style and wherein prior to automatically performing withdrawal collection, one or more securities within the first investment style are rebalanced according to the second model.

12. The system of claim 5, wherein the model specifies proportions of cash across at least the first investment style and the second investment style, and wherein the respective amount of cash withdrawn from the first investment style and the second investment style is based upon the proportions specified by the model.

19. The system of claim 5, wherein the request for the withdrawal is received from an overlay manager or investor associated with the single investment account.

20. The system of claim 11, wherein the generated one or more trades are associated with rebalancing the one or more securities.