US 7,606,754 B2Granted

Method and system for reconciling equity hedge funds

AssigneeHartford Fire Insurance Company

InventorPaul Reiss

Life of this patent

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Abstract

A method and system for tracking the compliance of an insurance policy's portfolio account used to finance benefit obligations containing equity-linked assets distributed among at least one fund category, containing at least one investment vehicle such as equities, bonds, cash, etc. This method monitors the balance of assets included in selected investment vehicles, e.g., equities, bonds, etc. and relates them to new or modified liability allocations. The method identifies a liability balance associated with selected investment vehicles within each of the insurance fund categories, identifies an asset balance associated with the value of equities in the account, and divests a portion of the equity assets when that asset balance exceeds a regulation regarding liability balance. The method further provides an indication for reporting when the asset balance is within the known relation to the liability balance.

Claims27

Dependent claims

A computer method for conforming the value of elements of a portfolio account to known relation, said account receiving at least one deferred payment allocated among at least one fund category, each of said fund categories containing at least one investment vehicle, said method comprising the steps of:

receiving by a computer from said account an allocation of liabilities associated with said at least one deferred payment allocated among at least a selected one of said at least one investment vehicles;
identifying by the computer a liability balance comprising the step of:
accumulating values of assets of the selected ones of said investment vehicles among each of said fund categories and said received liability allocation associated with the selected ones of said investment vehicles;
identifying by the computer a value of equity assets held in said portfolio account exclusive of equity assets held in life insurance policies;
determining by the computer whether one or more life insurance policies are included in said portfolio account, and, if one or more life insurance policies are included in said portfolio account, determining a value of equity assets in the one or more life insurance policies;
combining by the computer the value of the equity assets held in said portfolio account exclusive of equity assets held in life insurance policies and the value of the equity assets in the one or more life insurance policies to determine an asset balance associated with said portfolio account;
divesting a portion of said selected ones of said investment vehicles from the portfolio account when a dollar value of said asset balance exceeds a known relation imposed by banking regulation with regard to a dollar value of said liability balance until the dollar value of the portfolio account is within limits with regard to the known relation to the dollar value of said liability balance;
and
providing by the computer an indication when the value of elements of the portfolio account conform to said known relation.

6 more elements

A computer system for conforming certain elements of a portfolio account to known relation imposed by banking regulation, said account containing or intended to finance a plurality of deferred payment allocated among at least one fund category, each of said fund categories containing at least one investment vehicle, said system comprising:

a processor in communication with a memory, said processor operable for executing instructions stored on a computer-readable medium, the instructions, when executed by the processor, causing the processor to:
receive an allocation of liabilities associated with said deferred payment allocated among at least a selected one of said at least one investment vehicles;
identify a liability balance investment comprising accumulating balances of the selected ones of said investment vehicles among each of said fund categories and said received liability allocation associated with the selected ones of said investment vehicles;
identify a value of equity assets held in said portfolio account exclusive of equity assets held in life insurance policies;
determine whether one or more life insurance policies are included in said portfolio account, and, if one or more life insurance policies are included in said portfolio account, determine a value of equity assets in the one or more life insurance policies;
combine the value of the equity assets held in said portfolio account exclusive of equity assets held in life insurance policies and the value of the equity assets in the one or more life insurance policies to determine an asset balance associated with said portfolio account;
divest a most recently added portion of said selected ones of said investment vehicles from the portfolio account when a dollar value of said asset balance exceeds the known relation imposed by banking regulation with regard to a dollar value of said liability balance until the value of the portfolio account is within limits with regard to the known relation to said liability balance;
and
provide an indication when the value of elements of the portfolio account conform to said known relation.

6 more elements

Dependencies are inferred from the claim text.

Facts

Application: 10/066,120Filed 31 Jan 2002 · us provisional application
Priority: 5 Feb 2001
Published: US 2002/0138388 A126 Sep 2002
Granted: 20 Oct 2009
Term ends: Not estimatedThe source records don’t support an estimate.

Classification5 codes

G06Q 40/02
Finance; Insurance; Tax strategies; Processing of corporate or income taxes: banking, e.g. interest calculation or account maintenance
G06Q 40/00
Finance
G06Q 40/04
Finance; Insurance; Tax strategies; Processing of corporate or income taxes: trading; Exchange, e.g. stocks, commodities, derivatives or currency…
G06Q 40/06
Finance; Insurance; Tax strategies; Processing of corporate or income taxes: asset management; Financial planning or analysis