Method and apparatus for tax efficient investment management
US7031937B2 · kind B2 · utility
Assignee
Inventors
Key dates
| Filing date | Jan 18, 2002 |
| Grant date | Apr 18, 2006 |
| Priority date | — |
| Expiry date | Oct 14, 2023 |
Classification
- Technology area (CPC G)Physics
- CPC primaryG06Q40/10
- WIPO fieldIT methods for management
- WIPO sectorElectrical engineering
Abstract
A method and apparatus for automatically managing investment portfolios is disclosed which substantially tracks a selected index and automatically harvests tax losses. The system includes an accounting system for maintaining tax lot information for individual accounts, an optimization system for rebalancing each account to substantially model the index and for harvesting tax losses, and a trading system for executing trades. Each investor owns the securities in his/her account, and therefore, harvested losses can be used to offset capital gains. Securities sold to harvest tax losses are repurchased at a later time selected to avoid application of the Internal Revenue Service wash sale rules, with exchange traded funds (ETF's) from the same technological sector as the securities being sold to harvest tax losses being used as temporary replacement securities for the portfolios.
Source: USPTO / EPO open patent data. Objective bibliographic and citation counts.