System, method, and computer program product for cost effective, dynamic allocation of assets among a plurality of investments

US7769659B2 · kind B2 · utility

Assignee

• The Prudential Insurance Company of America · US

Inventors

• Robert Arena · Farmington, US
• N. David Kuperstock · Woodbridge, US
• Robert O'Donnell · Harwinton, US
• Lincoln Collins · Albuquerque, US

Key dates

• Filing date: Feb 15, 2002
• Grant date: Aug 3, 2010
• Expiry date: Nov 11, 2028

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q40/10
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

A system, method, and computer program product for dynamic, cost effective reallocation of assets among a plurality of investment products comprising a processor, a memory and a computer program stored in the memory. The computer program implementing the present invention controls the reallocation of assets to reduce the transactions costs associated with rebalancing the investor's composite assets according to a composite asset allocation model. Information relating to the composite asset allocation model, the investor's assets, and the investor are stored in memory. Periodically, or upon occurrence of an event, the composite assets are evaluated to determine if rebalancing is necessary. If rebalancing is necessary, the transaction costs associated with the available transactions for performing the rebalancing are compared to select the most economically favorable transaction. Thus, the reallocation is achieved by selecting the least costly transaction that will serve to realize the composite asset allocation model, which is independent of the structure of the investor's portfolio among particular accounts or products. In addition, the computer program compares the available optio…