System and methods to provide for and communicate about safer and better returning asset-liability investment programs

Abstract

A data processing system compiles information about account holders, holdings, and other investment-related information. A hypothetical portfolio is generated to provide for a specified payout stream over a defined period of time, statistically evaluated, and compared by means of scaling to determine the best fit scale of the portfolio to the defined criteria. The composition of this scaled portfolio in comparison with the composition of the available assets defines a series of trades. The composition of the level of payout that can be expected to be supported by the new composition of available assets defines a series of insurance trades. Insurance providers can impose limitations and requirements on the assets managed by limiting or stipulating certain settings that a given account can be allowed to have.

What is claimed is: 
     
         1 - 52 . (canceled) 
     
     
         53 . A method for quantifying the comparative payout and risk in an account, using a computing system having a processor and a storage, the method comprising:
 (a) retrieving, from the storage into the processor, information concerning a standard account comprising an expected payout over a given period of time and a target percentage allocation of fixed income securities compared to non-fixed income securities;   (b) receiving, into the processor, current and historical activity in fixed and non-fixed income securities in the standard account and a comparative account;   (c) automatically determining, in the processor, expected performance and expected potential downside outcomes for the fixed and non-fixed income securities in the standard account relating to the expected payout from step (a), in which the downside outcomes are based on the current and historical activity in the fixed and non-fixed income securities;   (d) automatically determining, in the processor, a first index for the account based on the expected performance and the expected potential downside outcomes in the standard account;   (e) automatically determining, in the processor, a second index for a comparative investment portfolio based on the expected performance and the expected potential downside outcomes relating to the expected payout from step (a) in a comparative account by repeating step (c);   (f) automatically generating a composite index that relates the expected performance of the comparative account to the standard account; and   (g) automatically generating a report in accordance with the first index, the second index, and the composite index.   
     
     
         54 . The method of  claim 53 , wherein the steps (a)-(g) are performed iteratively. 
     
     
         55 . The method of  claim 54 , wherein iterations of steps (a)-(g) are automatically initiated periodically. 
     
     
         56 . The method of  claim 54 , wherein iterations of steps (a)-(g) are initiated manually. 
     
     
         57 . The method of  claim 53 , wherein step (a) comprises permitting manual editing of the information retrieved in step (a). 
     
     
         58 . The method of  claim 53 , wherein the information in step (a) comprises an assumption or assumptions about inflation during a given period. 
     
     
         59 . The method of  claim 53 , wherein step (b) comprises accessing market data feeds relating to the assets in the standard and the comparative accounts. 
     
     
         60 . The method of  claim 53 , wherein step (c) comprises creating a hypothetical portfolio for the standard account comprising the assets, said creating the hypothetical portfolio comprising:
 i) creating an expected payout over a plurality of future time periods, and   ii) creating the hypothetical portfolio to provide the expected payout over the plurality of future time periods through a multi-constraint solver.   
     
     
         61 . The method of  claim 60 , wherein the hypothetical portfolio is evaluated to provide a probability distribution of a potential surplus or deficit. 
     
     
         62 . The method of  claim 53 , wherein step (e) comprises evaluating a comparative hypothetical portfolio, said evaluating the comparative hypothetical portfolio comprising:
 i) creating a normalized comparative portfolio with an asset allocation that matches the unnormalized comparative portfolio; and   ii) evaluating the normalized comparative portfolio to provide a probability of distribution of surplus or deficit when providing for cash outflows matched to the outflows used for a standard account.   
     
     
         63 . The method of  claim 53 , wherein step (f) comprises creating an index based on a relative expected surplus or deficit of a standard portfolio and of the comparative portfolio. 
     
     
         64 . The method of  claim 63 , wherein the index includes at least one measure of the potential downside outcomes of the standard portfolio, the potential downside outcomes of the comparative portfolio, or potential downside outcomes of a combination of the standard portfolio and the comparative portfolio. 
     
     
         65 - 116 . (canceled) 
     
     
         117 . A system for quantifying the comparative payout and risk in an account, the system comprising:
 a computer-readable storage medium;   a communication connection; and   a processor, in communication with the computer-readable storage medium and the communication connection, the processor being configured for:
 (a) retrieving, from the storage, information concerning a standard account comprising an expected payout over a given period of time and a target percentage allocation of fixed income securities compared to non-fixed income securities; 
 (b) receiving, over the communication connection, current and historical activity in fixed and non-fixed income securities in the standard account and a comparative account; 
 (c) automatically determining expected performance and expected potential downside outcomes for the fixed and non-fixed income securities in the standard account relating to the expected payout from step (a), in which the downside outcomes are based on the current and historical activity in the fixed and non-fixed income securities; 
 (d) automatically determining a first index for the account based on the expected performance and the expected potential downside outcomes in the standard account; 
 (e) automatically determining a second index for a comparative investment portfolio based on the expected performance and the expected potential downside outcomes relating to the expected payout from step (a) in a comparative account by repeating step (c); 
 (f) automatically generating a composite index that relates the expected performance of the comparative account to the standard account; and 
 (g) automatically generating a report in accordance with the first index, the second index, and the composite index. 
   
     
     
         118 . The system of  claim 117 , wherein the processor is configured to perform steps (a)-(g) iteratively. 
     
     
         119 . The system of  claim 118 , wherein the processor is configured to initiate iterations of steps (a)-(g) automatically and periodically. 
     
     
         120 . The system of  claim 118 , wherein the processor is configured to initiate iterations of steps (a)-(g) upon receipt of a manual command. 
     
     
         121 . The system of  claim 117 , wherein the processor is configured to perform step (a) by permitting manual editing of the information retrieved in step (a). 
     
     
         122 . The system of  claim 117 , wherein the processor is configured such that the information in step (a) comprises an assumption or assumptions about inflation during a given period. 
     
     
         123 . The system of  claim 117 , wherein the processor is configured to perform step (b) by accessing, over the communication link, market data feeds relating to the assets in the standard and the comparative accounts. 
     
     
         124 . The system of  claim 117 , wherein the processor is configured to perform step (c) by creating a hypothetical portfolio for the standard account comprising the assets, said creating the hypothetical portfolio comprising:
 i) creating an expected payout over a plurality of future time periods, and   ii) creating the hypothetical portfolio to provide the expected payout over the plurality of future time periods through a multi-constraint solver.   
     
     
         125 . The system of  claim 124 , wherein the processor is configured to evaluate the hypothetical portfolio to provide a probability distribution of a potential surplus or deficit. 
     
     
         126 . The system of  claim 117 , wherein the processor is configured to perform step (e) by evaluating a comparative hypothetical portfolio, said evaluating the comparative hypothetical portfolio comprising:
 i) creating a normalized comparative portfolio with an asset allocation that matches the unnormalized comparative portfolio; and   ii) evaluating the normalized comparative portfolio to provide a probability of distribution of surplus or deficit when providing for cash outflows matched to the outflows used for a standard account.   
     
     
         127 . The system of  claim 117 , wherein the processor is configured to perform step (f) by creating an index based on the relative expected surplus or deficit of a standard portfolio and of the comparative portfolio. 
     
     
         128 . The system of  claim 127 , wherein the index includes at least one measure of the potential downside outcomes of the standard portfolio, the potential downside outcomes of the comparative portfolio, or potential downside outcomes of a combination of the standard portfolio and the comparative portfolio. 
     
     
         129 . (canceled) 
     
     
         130 . An article of manufacture for quantifying the comparative payout and risk in an account, using a computing system having a processor and a storage, the article of manufacture comprising:
 a computer-readable storage medium; and   code stored on the computer-readable storage medium, the code, when executed on the computing system, controlling the computing system for:
 (a) retrieving, from the storage into the processor, information concerning a standard account comprising an expected payout over a given period of time and a target percentage allocation of fixed income securities compared to non-fixed income securities; 
 (b) receiving, into the processor, current and historical activity in fixed and non-fixed income securities in the standard account and a comparative account; 
 (c) automatically determining, in the processor, expected performance and expected potential downside outcomes for the fixed and non-fixed income securities in the standard account relating to the expected payout from step (a), in which the downside outcomes are based on the current and historical activity in the fixed and non-fixed income securities; 
 (d) automatically determining, in the processor, a first index for the account based on the expected performance and the expected potential downside outcomes in the standard account; 
 (e) automatically determining, in the processor, a second index for a comparative investment portfolio based on the expected performance and the expected potential downside outcomes relating to the expected payout from step (a) in a comparative account by repeating step (c); 
 (f) automatically generating a composite index that related the expected performance of the comparative account to the standard account; and 
 (g) automatically generating a report in accordance with the first index, the second index, and the composite index. 
   
     
     
         131 - 138 . (canceled)