WO2003096166A2

WO2003096166A2 - System and method for reporting multi-account asset allocation

Info

Publication number: WO2003096166A2
Application number: PCT/US2003/015021
Authority: WO
Inventors: Robert H. Baxley; Jeffery L. Coyle; Jerome Doran; Joff Redfern
Original assignee: Mycfo, Inc.
Priority date: 2002-05-13
Filing date: 2003-05-12
Publication date: 2003-11-20
Also published as: AU2003229054A1; AU2003229054A8; WO2003096166A3

Abstract

A monetary value (MV) is obtained for each asset of multiple assets held in a client’s multiple accounts. Each of the multiple assets is grouped into an asset group of multiple predetermined asset groups. Also, each of the multiple accounts is grouped into account groups. It is then determined for each asset group what proportion (P) of the multiple assets are held in each account group. This determination is based on a total monetary value (TMV) for all assets in each asset group held in each of the multiple account groups and an overall total monetary value (OTMV) of all of the assets. Finally, each proportion (P) is displayed on a chart made up of a matrix having a first axis listing each of the asset groups and a second axis listing each of the multiple account groups.

Description

SYSTEM AND METHOD FOR REPORTING MULTI-ACCOUNT ASSET ALLOCATION

BACKGROUND OF THE INVENTION

FIELD OF THE INVENTION [0001] The invention relates generally to financial management. More particularly, the invention is directed to a system and method for reporting asset allocation for multiple assets held in a client's multiple accounts.

DESCRIPTION OF RELATED ART [0002] One of the most important tools used by clients and/or financial managers for investment and asset portfolio management is asset allocation. Asset allocation is essentially the assignment of assets into broad asset categories. For example, a client may allocate funds to bonds and equities. Likewise, a financial manager may allocate a client's funds to common stocks representing various industries or sectors. An "asset," as used herein, is any tangible or intangible property, and any claims to such property. Assets can include cash, stock, real estate, commodities, hard assets, capital equipment, or the like. [0003] The evaluation, management, aggregation, differentiation, and allocation of diversified asset portfolios are, however, highly complex tasks. This is especially the case where a client owns, controls, or holds an interest in multiple accounts, and where each account holds multiple assets. To further complicate matters, these multiple accounts are often managed by different financial managers, such as banks, money managers, property management companies, etc. Also, a multi- generational family's assets are often managed by the financial managers of different generations.

[0004] In addition, statements and reports generated by these financial managers are often non-uniform, where each financial manager presents its financial content in a different way. What is more, these statements and reports typically arrive at different times. For example, a bank may send the client a statement of accounts at the end of each month in one form, while a money manager may only report once every three months in a completely different form. This continual inundation of countless different statements, reports, etc., makes it difficult for the client to assess asset allocation across various accounts.

[0005] Furthermore, these reports are often filled with financial jargon as well as other financial information that might be unfamiliar to the client. Such financial information often is also of no use to the client who simply wants to ascertain overall asset allocation.

[0006] As a result of the disorderly influx of reports and statements, many clients surrender control of most of their assets to one or two financial managers. Other clients rely on expensive accounting firms to wade through the vast amounts of financial information and report back to the client. By doing this, clients often relinquish control and in-depth knowledge of their asset portfolios to others. This lack of control and knowledge may subject clients to unnecessary risks and limit their financial growth.

[0007] What is more, clients may also be unaware of dispersed or common cross-holdings that may over- or under- weight overall allocation or complicate tax or estate planning.

[0008] Moreover, these financial managers and accountants often use visual representations of their clients' asset portfolios, such as graphs or charts, to help evaluate asset allocation. While such graphs or charts are an easier way of presenting information than text or tables, they typically only represent those assets under the control of the financial manager or accountant that generated the report and are generally limited to individual accounts. In addition, such graphs and charts typically display only one or two dimensions of data. For example, a typical mutual fund chart displays the mutual fund's daily closing price as a function of time. More complex charts, such as candlestick charts, may display additional information, such as a stock's daily opening and closing price as a function of time. As a result, clients with multiple assets spread across multiple accounts must often view multiple charts to glean the overall state of their asset portfolios. What is more, these charts or graphs typically have no obvious interrelation to one another, thereby making it difficult to quickly and easily assess asset allocation.

[0009] Accordingly, there is a need for a system and method for quickly and easily reporting asset allocation for multiple assets held in a client's multiple accounts. BRIEF SUMMARY OF THE INVENTION [0010] According to the invention there is provided a computer-implemented method for reporting multi-account asset allocation. A monetary value (MV) is obtained for each asset of multiple assets held in a client's multiple accounts. Each of the multiple assets is grouped into an asset group of multiple predetermined asset groups. Also, each of the multiple accounts are grouped into account groups. It is then determined for each asset group what monetary proportion (hereafter "proportion (P)") of the multiple assets are held in each account group. This determination is based on a total monetary value (TMV) for all assets in each asset group held in each of the multiple account groups and an overall total monetary value (OTMV) of all of the assets. Finally, each proportion (P) is displayed on a chart made up of a matrix having a first axis listing each of the asset groups and a second axis listing each of the multiple account groups.

[0011] Further, according to the invention, there is provided a system for reporting multi-account asset allocation. The system includes a report generator that generates multi-account asset allocation reports, at least one price provider that provides current or last known price data to the report generator, and at least one custodian that provides account position data to the report generator. The report generator has a central processing unit and a memory. The memory includes a portfolio accounting module, a multi-asset allocation module, and a database reporting module. The portfolio accounting module includes instructions for obtaining a monetary value (MV) for each asset of the multiple assets held in each of a client's multiple account groups. The multi-asset allocation module includes instructions for determining for each account group and each asset group what proportion (P) of the client's total assets are found in that asset group and held in that account group. This determination is based on a total monetary value (TMV) for all assets in each asset group held in each of the multiple account groups and an overall total monetary value (OTMV) of all of the client's assets. The database reporting module includes instructions for displaying each proportion (P) on a chart having a first axis listing each of the asset groups and a second axis listing each of the multiple account groups. The portfolio accounting module further includes a grouping schema and grouping procedures for grouping each of the multiple assets into one asset group of multiple predetermined asset groups. [0012] Therefore, in a single image the abovementioned chart enables the client or his/her financial advisors to effectively communicate complex asset allocation strategies spread across specific and multiple account and asset groups. This allows for effective and comprehensive communication of the client's specific and overall financial portfolio, which is critical to clients with complex financial portfolios and/or multi-generation planning concerns.

BRIEF DESCRIPTION OF THE DRAWINGS [0013] For a better understanding of the nature and objects of the invention, reference should be made to the following detailed description, taken in conjunction with the accompanying drawings, in which:

[0014] Figure 1 is a block diagram of a system for reporting multi-account asset allocation, according to an embodiment of the invention; [0015] Figures 2 A and 2B are flow charts of a method for reporting multi- account asset allocation, according to an embodiment of the invention; [0016] Figure 3 is chart displaying asset allocation for multiple assets held in a client's multiple accounts, according to an embodiment of the invention; [0017] Figure 4 is an enlarged view of a portion of the chart displayed in

Figure 3; and

[0018] Figure 5 is an enlarged view of another portion of the chart displayed in Figure 3.

[0019] Like reference numerals refer to corresponding parts throughout the several views of the drawings.

DETAILED DESCRIPTION OF THE INVENTION [0020] Figure 1 is a block diagram of a system 100 for reporting multi- account asset allocation, according to an embodiment of the invention. The system 100 comprises a report generator 102, one or more price providers 104, and one or more custodians 108 all coupled to one another via a network 106. The report generator 102 preferably obtains asset and account data from the price providers 104, custodians 108, and its own internal databases to ascertain and report one or more clients' asset allocations across the clients' multiple accounts. [0021] The report generator 102, price providers 104, and custodians 108 are any type of computing devices, such as personal computers, servers, or the like. However, in a preferred embodiment, price providers 104 and custodians 108 are servers that serve data to the report generator 102 (client). The report generator 102 is preferably a desktop or laptop computer or a Personal Digital Assistant (PDA) with wireless access to the network 106. Also in a preferred embodiment, the network 106 is the Internet. Furthermore, although the report generator 102, price providers 104, and custodians 108 are shown as separate computing devices, it should be appreciated that they may be combined into one or more computing devices with data stored on one or more separate storage devices.

[0022] The price providers 104 provide the report generator 102 with price data for one or more assets. The price data contain a monetary value (MV) for each asset. For example, a price provider might be a supplier of stock market data that supplies the report generator 102 with the latest stock prices. A suitable price provider is STANDARD AND POOR'S COMSTOCK XPRESSFEED, which is a high-speed digital data-feed that provides access to over one hundred worldwide exchanges and sources of market data. The price providers preferably provide this price data to the report generator 102 in real time via network 106, but alternatively these price data may be provided to the report generator 102 periodically. [0023] The custodians 108 are entities that hold, manage, or have custody or control of one or more accounts for one or more clients. For example, a custodian 108 may be a money manager or stock broker, such as SCHWAB, MELLON, FIDELITY, or the like. Custodians 108 provide the report generator 102 with account position data for one or more accounts. These account position data preferably include an account number and the amount of each asset in that account. For example, such account position data may include the following information: account A holds 30000 shares of Company X and 40000 shares of Company Y, while account B holds 150000 shares of Company Z and $500,000 cash. Thus, for each custodian the total account position data includes all the assets under the control or management of that custodian. The custodians 108 preferably provide this account position data to the report generator 102 in real time via network 106, but alternatively this account position data may be provided to the report generator 102 periodically. [0024] The report generator 102 preferably comprises the following components: at least one data processor or central processing unit (CPU) 110; a memory 116; communications circuitry 112; user interface devices 114, such as a monitor, keyboard, and printer; and at least one bus 118 that interconnects these components. The communications circuitry 112 is configured to communicate over the network 106 with the price providers 104 and custodians 108. [0025] In an alternative embodiment, price data and/or account position data are supplied to the report generator via the user interface devices 114. For example, the price data and/or account position data may be manually typed into the report generator 102, or loaded onto the report generator 102 via a floppy disk drive, Local Area Network (LAN), or the like.

[0026] Memory 116 preferably includes an operating system 120, such as

UNIX™, WINDOWS™, or LINUX™, having instructions for processing, accessing, storing, or searching data, etc. Memory 116 also preferably includes communication procedures 122; presentation procedures 124; a portfolio accounting module 126; a client administration module 136; a multi-asset allocation module 144; a database reporting module 152; and a cache 156 for temporarily storing data. [0027] The communication procedures 122 are used for communicating with the network 106, price providers 104, and custodians 108. The presentation procedures 124 are used for presenting multi-account asset allocation, such as on a display or printout, as explained in further detail below.

[0028] The portfolio accounting module 126 is a portfolio management and accounting system that handles all bookkeeping functions for calculating and maintaining the financial records of multiple asset portfolios. A suitable portfolio accounting module is the AXYS™ portfolio accounting system made by ADVENT SOFTWARE™, INC.

[0029] The portfolio accounting module 126 manages a large range of investment instruments including: mutual funds, equities, fixed income, mortgage-backed securities, derivatives, variable rate securities, or the like, h a preferred embodiment, the portfolio accounting module 126 receives automated electronic data-feeds from the price providers 104 and the custodians 108, and automatically populates a price and account position database 128 with price and account position data for each client who has subscribed to the multi-account asset allocation system. For example, SCHWAB provides the report generator 102 with account position data, such as the type and quantity of stock held in a particular account, while the price providers 104 provide the report generator with the current stock prices. The current monetary value (MV) of each asset 130(1)-(N) in each account 131 managed or controlled by a custodian 108 is then stored in the price and account position database 128. It should also be noted that account position data and/or price data may be entered by any other suitable means and need not come from the price providers 104 and/or custodians 108.

[0030] The portfolio accounting module 126 also contains multiple grouping schema 132 and grouping procedures 134 that are preferably used to group the client's multiple assets into a predetermined number of asset groups. For example, all of a client's United States stocks are grouped together in a "U.S. Stocks" asset group, while all real estate is grouped together in a "Real Estate" asset group. The grouping schema 132 and grouping procedures 134 may group assets based on any of their characteristics, such as: asset/security class, asset/security type, asset/security industry, asset/security sector, asset ownership interest, asset liquidity, or the like. Each asset group preferably includes one or more assets. However, in some embodiments an asset group might not include any assets.

[0031] The client administration module 136 contains a client database 138 containing an entry for each client. Each entry preferably includes client details, such as the name and address of each client, login details, account structure, etc. Each entry also preferably includes one or more account groups 140 that preferably include one or more of the client's multiple accounts 141(1)-(N). An account group 140 is any grouping of accounts based on account characteristics, such as the entity or group of entities that owns, controls, or has an interest in an account. An account group may be setup to facilitate reporting. For example, multiple accounts managed by the same type of money managers may be lumped into a single account group. Such entities or groups of entities include all legal entities, such as a client him/herself, corporations, companies, partnerships, limited liability companies, sole proprietorships, organizations, businesses, trusts, a client's family, common property, separate property, or the like. These various entities may for example be established by law, as is the case with common or separate property, or they may for example be founded by the client to accomplish a specific task, such as tax minimization or deferral, separate and distinct control of various assets, liability and risk management, or the like. What is more, each account group preferably includes one or more accounts. However, in some embodiments an account group might not include any accounts. An example of an account group is multiple accounts owned or controlled by Twin Peaks LLC. [0032] Account association procedures 142 associate each account 131 in the price/account position database 128 with a specific account group 140. For example, SCHWAB account number 123-45-6789 having a current value of $150,000, is associated with a specific account group, illustratively Twin Peaks LLC. [0033] The multi-asset allocation module 144 includes a target allocation database 146 containing a desired target allocation per account group and per asset group 148(1)-(N), details of which are explained below in relation to Figures 2A and 2B. The multi-asset allocation module 148 also contains allocation procedures 150 for determining for each asset group what monetary proportion (P) of a client's total assets are held in the client's account group/s.

[0034] Database reporting module 152 is a reporting tool that utilizes data from any of the abovementioned data sources to generate a simple, yet data-intensive, chart 300 (Figure 3). Database reporting module 152 also contains predetermined visual design standards 154 to generate the chart. A suitable database reporting module is CRYSTAL REPORTS™ made by CRYSTAL DECISIONS™. [0035] It should be appreciated that the various parts of memory 116 may be located on a single computing device (as shown) or may be separated onto two or more computing devices.

[0036] Figures 2A and 2B are flow charts 200 of a method for reporting multi- account asset allocation, according to an embodiment of the invention. For ease of explanation, this method will only describe a single client's asset allocation. [0037] In one embodiment, current or last known price data are initially received, at 202, at the report generator 102 (Figure 1) from one or more price providers 104 (Figure 1). For some assets, such as art, wine, or planes, the last known or identified price is received. Account position data for the multiple assets held in the client's multiple accounts are then received, at 204, from one or more custodians 108 (Figure 1). The communication procedures 122 (Figure 1) handle all communication with the price providers 104 (Figure 1) and custodians 108 (Figure 1). The price data and account position data are stored in each account 130(1)-(N) (Figure 1) of the price/account position database 128 (Figure 1). In an alternative embodiment, the price and account position data are received by any suitable means, such as by being inputted manually into the report generator 102 by a computer operator.

[0038] Using the current or last known price data, the portfolio accounting module 126 (Figure 1) then obtains, at 206, a monetary value (MV) for each asset held in each of the client's multiple accounts 131 (Figure 1). Subsequently, at 208, the account association procedures 142 (Figure 1) associate each of the multiple accounts 131 (Figure 1) with one of the multiple account groups 140 (Figure 1). [0039] The grouping procedures 134 (Figure 1) then group, at 210, each of the multiple assets into a single asset group of multiple predetermined asset groups. The multiple predetermined asset groups form part of the grouping schema 132 (Figure 1). For example, the office building in the Twin Peaks LLC account group is grouped into the "Real Estate" asset group.

[0040] Subsequently, the allocation procedures 150 (Figure 1) determine, at

212, for each account group, what proportion (P) of the total assets is held in each account group. For each asset group, this determination is based on a total monetary value (TMN) for all the assets in that asset group held in that account group, and an overall total monetary value (OTMN) of all of the client's assets. More specifically, for each asset group this proportion (P) is calculated by: summing, at 216, all monetary values for all assets in that asset group held in that account group to generate a total monetary value (TMN) for each asset group held in each account group; summing, at 218, all monetary values for all assets to generate an overall total monetary value (OTMV); and calculating, at 220, each proportion (P) based on total monetary value (TMV) for each asset group held in each account group and the overall total monetary value (OTMV). This final calculation comprises dividing each total monetary value (TMV) for each asset group held in an account group by the overall total monetary value (OTMV) and multiplying by one hundred. For example, all monetary values for all assets in the "U.S. Stocks" asset group held in the Twin Peaks LLC account group are summed to generate a total monetary value for the Twin Peaks LLC account group (e.g. TMV=$ 100,000). All monetary values of all of the client's multiple assets are then summed to generate an overall total monetary value (e.g. OTMN=$ 1,000,000). Finally, the total monetary value (TMN) for the U.S. stocks asset group held in the Twin Peaks LLC account group is divided by the overall total monetary value (OTMN) to generate a proportion (P) of the client's entire asset portfolio that is made up of "U.S. Stocks" and is held in the Twin Peaks LLC account group (e.g., [100,000/1 ,000,000]* 100=10% of the overall total monetary value (OTMV) of the client's assets are U.S. stocks held by Twin Peaks LLC). [0041] The database reporting module 152 (Figure 1) then displays, at 214, each proportion (P) on a chart 300 (Figure 3) having a first axis 302 (Figure 3) listing each of the asset groups and a second axis 304 (Figure 3) listing each of the multiple account groups. The chart layout is dictated by the visual design standards 154 (Figure 1). The chart is preferably laid out in a matrix form, i.e., having an array of elements in row and column (vector) format. In a preferred embodiment, to reduce visual clutter, only those proportions (Ps) that have a non zero value are displayed, i.e., nothing is displayed for account groups that do not have any assets in a particular asset group. This chart 300 (Figure 3) allows a client to quickly and easily assess his/her asset allocation across multiple accounts.

[0042] h a preferred embodiment, using the target allocation database 146

(Figure 1), the multi-asset allocation module 144 (Figure 1) then ascertains, at 216, the target proportions (TPs) corresponding to each proportion (P) calculated above. For example, the client may desire a target proportion (TP) of U.S. stocks held by Twin Peaks LLC to be 5% of all of his/her assets.

[0043] The multi-asset allocation module 144 (Figure 1) then determines at

218 whether the difference or deviation between each calculated proportion (P) and each target proportion (TP) is more than a predetermined amount stored in the target allocation database 146 (Figure 1). For example, the calculated proportion (P) of U.S. stocks held by Twin Peaks LLC may be 4%; the target proportion (TP) of U.S. stocks held by Twin Peaks LLC may be 5%; and the predetermined amount may be 0.5%. In this example, the multi-asset allocation module 144 (Figure 1) determines that the deviation of 5%-4%=l% is more than the predetermined amount of 0.5%. [0044] If the deviation is larger than the predetermined amount (218 - Yes), then the chart is visually marked at 220 to draw attention to the deviation. In a preferred embodiment, each proportion (P) is surrounded with a black box. When the deviation is larger than the predetermined amount, the box's color changes to another color, such as red, to alert the client that his/her portfolio has an asset allocation that is not in line with the target proportions (TPs). Continuing with the example above, since Twin Peaks LLC holds 1% more U.S. stocks than the desired 4%, and 1% is larger than 0.5%, the chart is visually marked to alert the client or his/her financial advisor to sell 1% of Twin Peak LLC's U.S. stocks.

[0045] Once the deviation is marked at 220, or if the deviation is less than the predetermined amount (218 - No), then these target proportions (TPs) are displayed on the chart 300 (Figure 1), at 222, preferably near each corresponding calculated proportion (P). In a preferred embodiment, as shown in Figure 3, if the target proportion (TP) is above the calculated proportion (P), the target proportion (TP) is displayed immediately above the calculated proportion (P) within a box that encloses both values, and if the target proportion (TP) is below the calculated proportion (P), the target proportion (TP) is displayed immediately below the calculated proportion (P) within a box that encloses both values. If no target proportion (TP) is supplied, it is not displayed.

[0046] In a preferred embodiment, for each account group, all proportions (Ps) are then summed across all asset groups to determine at 224 a total account group proportion (TAGP) for that account group. Likewise, for each asset group, all proportions (Ps) are then summed across all account groups to determine at 223 a total asset proportion (TAP) for that asset group. The total account group proportions (TAGPs) and total asset proportions (TAPs) are then displayed, at 228 and 226, respectively, at the end of each account group and asset group vector, where a vector is either a column or row of the matrix (See 306 and 308 of Figure 3). For example, Twin Peaks LLC may hold 22% of the overall total monetary value (OTMV) of a client's assets, while 9.95% of the overall total monetary value (OTMN) of the client's assets is held in U.S. stocks.

[0047] Also in a preferred embodiment, a target total account group proportion (TTAGP) and target total asset proportion (TTAP) for each account group and each asset group are ascertained, at 232 and 230, for each total account group proportion (TAGP) and total asset proportion (TAP), respectively. In a similar manner to steps 218, 220, and 222 the target total account group proportion (TTAGP) and target total asset proportion (TTAP) are displayed, at 236 and 234. For example, the calculated total account group proportion (TAGP) for Twin Peaks LLC might be 22% and the target total account group proportion (TTAGP) might be 11%. This difference of 22%- 11%=11% may cause the total account group proportion (TAGP) or the target total account group proportion (TTAGP) to be visually marked. [0048] All the total account group proportions (TAGPs) and total asset proportions (TAPs) are then summed to generate an overall total account group proportion (OTAGP) at 240 and an overall total asset proportion (OTAP) at 238, and displayed, at 244 and 242 respectively, to ensure that they add up to 100% (See 310 of Figure 3).

[0049] Figure 3 is chart 300 displaying asset allocation according to an embodiment of the invention. It should be appreciated that this chart may be presented in any suitable medium, such as on a computer, cellular phone, mobile device screen, paper printout, PDA, or the like. The chart 300 conveys a client's asset allocation for multiple asset groups held in a client's multiple account groups. The layout of the chart 300 is preferably a predetermined matrix having columns and rows (vectors). In a preferred embodiment, the vertical axis 302 lists the client's multiple account groups, such as Common Property, Twin Peaks LLC, etc., while the horizontal axis 304 lists multiple predetermined asset groups, such as U.S. Stocks, Real Estate, etc. Total asset proportions (TAPs) 306 are listed at the end of each asset group vector, while total account group proportions (TAGPs) 308 are listed at the end of each account group vector. An overall total account group proportion (OTAGP) 310 of all total account group proportions (TAGPs) and an overall total asset proportion (OTAP) 310 of all total asset proportions (TAPs) is displayed at an end of the total asset proportions (TAPs) 306 and total account group proportions (TAGPs) 308 vectors.

[0050] Figure 4 is an enlarged view of a portion 400 of the chart displayed in

Figure 3. The vertical axis 302 (Figure 3) lists various predetermined account groups, such as "Common Property" 408 and "Separate Property" 410. The horizontal axis 304 (Figure 3) lists multiple predetermined asset groups, such as "Publically Traded Equities" 402, or the like. Each account group or asset group may be subdivided into account sub-groups or asset sub-groups. For example, "Publically Traded Equities" 402 is subdivided into "U.S.Stocks" 404 and "Non-U.S. Equities" 406. A calculated proportion (P) 414 of each of said multiple assets that is held in each of the multiple accounts 408 and 410, is displayed for each asset group or sub-group 402, 404, and 406. For account groups that do not own any assets in a particular asset group or subgroup, no proportion (P) is displayed, as shown at 412. A target proportion (TP) 416 is preferably displayed in close proximity to the calculated proportion (P) 414. hi a preferred embodiment, if the target proportion (TP) 416 is lower than the proportion (P) 414, it is displayed below the calculated proportion (P) 414 in a box that encloses both values, while if the target proportion (TP) is higher than the proportion (P), it is displayed above the calculated proportion (P) in a box that encloses both values. [0051] Figure 5 is an enlarged view of another portion 500 of the chart 300 displayed in Figure 3. If the difference or deviation between each calculated proportion (P) 414 (Figure 4) and each target proportion (TP) is more than a predetermined amount, then the chart 300 (Figure 3) is visually marked to draw attention to this deviation. For example, the black box 502 that usually surrounds a proportion (P) is bolded or changed to a different color 504. In a similar manner, if the difference or deviation between each total account group proportion (TAGP) or total asset proportion (TAP) and each target total account group proportion (TTAGP) or target total asset proportion (TTAP) is more than a predetermined amount, then the chart 300 (Figure 3) is visually marked to draw attention to this deviation. [0052] Therefore, in a single eye span, the chart effectively communicates at least two, but preferably five distinct dimensions of data. The chart is shown as a two dimensional matrix with each cell corresponding to the current allocation of the total holdings for a single account group in a particular asset group. This structure communicates two dimensions of data: allocation by asset group and allocation by account group.

[0053] In a preferred embodiment, the two dimensional character of the chart is visually supported by the ruled lines running in the vertical and by the shaded areas running in the horizontal. The third and fourth dimensions of data captured in the chart are the current allocation (calculated proportion (P)) and target allocation (target proportion (TP)) for each specific intersection of account and asset group. The large number appearing in each cell of the matrix represents the current allocation for a particular account/asset group pair. Note that visual clutter may be reduced by only displaying values when the current allocation is greater than zero. Similarly, target allocation is only displayed in instances where it varies from the current allocation. In such cases, target allocation is communicated by the smaller number appearing above or below the current allocation figure. The final dimension of data displayed in the chart is deviation or variance, which is itself composed of three distinct sub-dimensions: existence, polarity, and severity. The existence of variance is communicated by whether or not the target allocation figure is displayed. Polarity of variance, that is whether the current allocation is higher or lower than the target allocation, is communicated by the location of the target allocation figure: at the top of the cell if the current allocation is above the target, at the bottom of the cell if it is below. Finally, severity of variance is communicated in a Boolean manner by darkening the background of the cell and giving it a red border if and when the variance exceeds the threshold of a predetermined amount, such as +/- five percentage points.

[0054] The foregoing descriptions of specific embodiments of the present invention are presented for purposes of illustration and description. They are not intended to be exhaustive or to limit the invention to the precise forms disclosed; obviously many modifications and variations are possible in view of the above teachings. The embodiments were chosen and described in order to best explain the principles of the invention and its practical applications, to thereby enable others skilled in the art to best utilize the invention and various embodiments with various modifications as are suited to the particular use contemplated. Furthermore, the order of steps in the method are not necessarily intended to occur in the sequence laid out. It is intended that the scope of the invention be defined by the following claims and their equivalents.

Claims

WHAT IS CLAIMED IS:

1. A computer-implemented method for reporting multi-account asset allocation, comprising: obtaining a monetary value (MN) for each asset of multiple assets held in a client's multiple accounts, where said multiple accounts are grouped into account groups and each asset is associated with an asset group; determining for each asset group what proportion (P) of said multiple assets are held in each account group; and displaying each said proportion (P) on a chart having a first axis listing each of said asset groups and a second axis listing each of said account groups.

2. The computer-implemented method of claim 1, wherein said obtaining further comprises grouping each of said multiple assets into an asset group selected from multiple predetermined asset groups.

3. The computer-implemented method of claim 2, wherein said grouping is based on each of said multiple assets' characteristics, where said multiple assets' characteristics consist of: asset class, asset type, asset industry, asset sector, asset ownership interest, asset liquidity, and any combination of the aforementioned.

4. The computer-implemented method of claim 1 , wherein said obtaining further comprises grouping each of said multiple accounts into account groups based on characteristics of each of said multiple accounts.

5. The computer-implemented method of claim 1, wherein said obtaining further comprises: receiving from a custodian account position data for multiple assets held in said multiple accounts; receiving current or last known price data from a price provider; calculating said monetary value (MN) for each of said multiple assets based on said account position data and said price data.

6. The computer-implemented method of claim 1 , wherein said determining further comprises: summing all monetary values (MVs) for all assets in each asset group held in each of said multiple account groups to generate a total monetary value (TMV) for each account group; summing all monetary values (MVs) to generate an overall total monetary value (OTMV); and calculating each said proportion (P) based on the total monetary value (TMV) for each account group and said overall total monetary value (OTMV).

7. The computer-implemented method of claim 6, wherein said calculating comprises dividing each total monetary value (TMV) by said overall total monetary value (OTMV) and multiplying by one hundred.

8. The computer-implemented method of claim 1, wherein said displaying step further comprises displaying only those proportions (Ps) that are larger than zero.

9. The computer-implemented method of claim 1, further comprising: determining a total account group proportion (TAGP) for each of said multiple account groups by summing all proportions (Ps) across all asset groups for each of said multiple account groups; and displaying said total account group proportion (TAGP) for each of said multiple account groups on said chart.

10. The computer-implemented method of claim 9, further comprising: ascertaining a target total account group proportion (TTAGP) for each of said multiple account groups; determining whether each target total account group proportion (TTAGP) deviates from its total account group proportion (TAGP) by more than a predetermined amount; and visually marking said chart for those account groups that have a target total account group proportion (TTAGP) that deviates from its total account group proportion (TAGP) by more than said predetermined amount.

11. The computer-implemented method of claim 9, further comprising: calculating an overall total account group proportion (OTAGP) by summing all of said total account group proportions (TAGP); and displaying said overall total account group proportion (OTAGP) on said chart.

12. The computer-implemented method of claim 1 , further comprising: determining a total asset proportion (TAP) for each asset group by summing all proportions (Ps) across all of said multiple account groups for each asset group; and displaying on said chart said total asset proportion (TAP) for each asset group.

13. The computer-implemented method of claim 12, further comprising: ascertaining a target total asset proportion (TTAP) for each asset group; determining whether each target total asset proportion (TTAP) deviates from its total asset proportion (TAP) by more than a predetermined amount; and visually marking said chart for each asset group that has a target total asset proportion (TTAP) that deviates from its total asset proportion (TAP) by more than a predetermined amount.

14. The computer-implemented method of claim 12, further comprising: calculating an overall total asset proportion (OTAP) by summing all of said total asset proportions (TAPs); and displaying said overall total asset proportion (OTAP) on said chart.

15. The computer-implemented method of claim 1 , further comprising: ascertaining a target proportion (TP) for each account group and asset group combination; and displaying each target proportion (TP) on said chart adjacent each corresponding proportion (P) for each account group and asset group combination.

16. The computer-implemented method of claim 1, further comprising: ascertaining a target proportion (TP) for each account group and asset group combination; determining that said target proportion (TP) deviates from its corresponding proportion (P) by more than a predetermined amount; and visually marking said chart near said corresponding proportion (P) to indicate a deviation more than said predetermined amount.

17. The computer-implemented method of claim 1, further comprising: ascertaining a target proportion (TP) for each account group and asset group combination; determining that said target proportion (TP) is higher than its corresponding proportion (P); and displaying said target proportion (TP) on said chart above said corresponding proportion (P).

18. The computer-implemented method of claim 1 , further comprising: ascertaining a target proportion (TP) for each account group and asset group combination; determining that said target proportion (TP) is lower than its corresponding proportion (P); and displaying said target proportion (TP) on said chart below said corresponding proportion (P).

19. The computer-implemented method of claim 1, further comprising dividing said accounts into sub-accounts.

20. The computer-implemented method of claim 1, further comprising dividing said asset groups into sub-asset groups.

21. The computer-implemented method of claim 1 , further comprising grouping said account groups into larger account groups.

22. The computer-implemented method of claim 1, further comprising grouping said asset groups into larger asset groups.

23. A system for reporting multi-account asset allocation comprising: a report generator that generates multi-account asset allocation reports, said report generator comprising: a central processing unit; and a memory comprising: a portfolio accounting module having instructions for obtaining a monetary value (MV) for each asset of multiple assets held in a client's multiple accounts, where said multiple accounts are grouped into account groups, and where each asset is associated with an asset group; a multi-asset allocation module having instructions for determining for each asset group what proportion (P) of said multiple assets are held in each account group; and a database reporting module having instructions for displaying each said proportion (P) on a chart having a first axis listing each of said asset groups and a second axis listing each of said account groups.

24. The system of claim 23, wherein said portfolio accounting module further comprises: a grouping schema; and grouping procedures having instructions for grouping each of said multiple assets into an asset group selected from multiple predetermined asset groups.

25. The system of claim 23, wherein said instructions for obtaining further comprise: instructions for receiving from a custodian account position data for multiple assets held in said multiple accounts; instructions for receiving current or last known price data from a price provider; instructions for associating each of said multiple assets with one of said multiple account groups; instructions for calculating said monetary value (MV) for each of said multiple assets based on said account position data and said price data.

26. The system of claim 23, further comprising: at least one price provider that provides current or last known price data to said report generator; and at least one custodian that provides account position data to said report generator, where said price data and said account position data are used for obtaining said monetary value (MV) for each asset of multiple assets held in a client's multiple accounts.