NZ582427A - Investment portfolio management and financial transaction tool - Google Patents

Abstract

Disclosed is a system (10) for digital communications between at least a first financial institution (18), a data provider (16) and a user (12). The communication between the data provider (16) and the at least one financial institution (18) is secure and credentialed and is used for the user (12) to transfer digital data representative of elements of an investment portfolio. The system (10) is in communication with at least a second financial institution (20), whereby the data provider (16) can engage in a transaction to move at least selected ones of the elements from the first financial institution (18) to the second financial institution (20).

Description

Patents Form # 5 DIVISIONAL OUT OF APPLICATION # 565568 ANTE-DATING REQUESTED TO 1 July 2005 NEW ZEALAND Patents Act 1953 COMPLETE SPECIFICATION Title PORTFOLIO MANAGEMENT TOOL I, DAVIS, Richard Charles Leighton Address: 138 Goodlet Street, Surry Hills, NSW 2010, Australia Nationality An Australian citizen do hereby declare the invention for which I pray that a patent may be granted to me and the method by which it is to be performed, to be particularly described in and by the following statement: 40G774NZA_Divpat_20100106_ 901 _EMM.doc FEE CODE - 1010 - lo- received by IPONZ on 6 July 2011 Portfolio Management Tool BACKGROUND A need exists for an investor to be able to download and to 5 communicate with financial institutions in a secure manner and appropriately credentialed manner so as to receive data for the purpose of determining an investor's real personal rate of return at any time for any time period and to enable the investor to shift their investment weighting 10 between different financial products which can include products offered by a new financial institution.

A need exists for an investor to be provided with the ability to rapidly enter into a credentialed trading 15 relationship with a new trading institution.

It is an object of the present invention to enable the investor to be able to download and to communicate with financial institutions in a secure manner and appropriately 20 credentialed manner so as to receive data for the purpose of determining their real personal rate of return and to enable the investor to shift their investment weighting between different financial products which can include products offered by a new financial institution. received by IPONZ on 6 July 2011 It is an object of the present invention enable an investor to enter into a secure trading arrangement with a new financial institution and to thereby avoid the otherwise time consuming process of filling out credentialing forms 5 with associated delay.

In another embodiment, the present invention relates to the field of portfolio analysis and more particularly to a method and apparatus for securely determining a personal investment return for a portfolio of financial products subject to particular investment decisions over a plurality of differing time frames in a secure and credentialed system.

Whilst the prior art in the field of portfolio investment analysis teaches the ability to determine an annualized rate of return for a given financial product. The prior art is deficient in various respects.

Firstly, financial products in a typical portfolio can include a range of products from traded securities such as shares, to unlisted products, futures, investments in residential or commercial property, all of which can have differing rates of returns. received by IPONZ on 6 July 2011 Further, whilst many publicly retailed financial products may have published rates of returns associated with them, it is often surprising to investors to discover that when the effects of transaction costs, such as brokerage rates, 5 management fees, or inflation, to name just a few factors are included that their rates of return can be quite different. Further, the published rates of returns of institutions reflect the cash flow of the institutional fund as distinct from the actual cash flow realized by a 10 potential investor. The individual needs to determine a rate of return based upon all factors that are relevant to his or her personal investment experience needs and obj ects.

Naturally, as a result of government pressure, a worldwide trend has developed towards increased disclosure and transparency of such otherwise hidden costs in the financial services industry. However, many investors do not readily have a means to calculate their real personal rates 20 of return when the effects of these transactional costs are included, thereby making it difficult for investors to select between a plurality of competing financial products.

Once the effects of transactional costs and management fees 25 are included many investors are actually surprised to find that elements of their investment portfolio actually have a received by IPONZ on 6 July 2011 negative rate of return over a period in question. In the case of retirees for example, whose income generation from their investment may be their only source of income, then the need to maximize their rate of return can be quite 5 significant. For such persons selecting a financial product based upon a rate of return which superficially appears attractive given published information, but which for their personal investment time frames actually leads to a negative or sub optimal rate of return can mean that such 10 persons have inadequate moneys to fund their retirement, thereby rendering such persons either as a burden upon their relatives or upon the public purse.

The actual time period or periods in which the investor has 15 or can invest their moneys can become quite significant. Often published rates of return whilst adequately representing the rates of return over a period in question can be chosen deliberately to exclude events which if included may have otherwise significantly reduced a 20 published rate of return. For example, a published rate of return, which included a significant proportion of risk prone stocks which chose to publish returns for a time frame that did not include the time frame associated with what has become known as the "tech wreck" in the year 2000, 25 in say the case of software stocks, then this scenario could give a potential investor an inaccurate and unhelpful received by IPONZ on 6 July 2011 perspective as to the expected rate of return that can consistently be obtained. Conversely, a time frame which chose to include an unusually positive period could also create a misleading impression. For example, a published 5 rate of return for a portfolio which focused exclusively upon oil stocks during a time of unusually high energy prices could give a misleading impression that such a rate of return can consistently be secured by way of investment in energy stocks, a similar argument would apply in 10 relation to property stock investment wherein the published return for a fund tilted towards the property sector, which chose to include or exclude major rises and falls in underlying property prices in its time frames for calculating rates of return could give an unhelpful or 15 incorrect impression that such rates of return could consistently be achieved.

Further, the ability to receive data which enables an investor to determine their personal rates of return either 20 actually or hypothetically would obviously need to be performed in a secure manner to protect investor confidence and the integrity of client data. Further, the security of the institutions in which the client considers investing his or her moneys is also a relevant consideration. Many 25 clients for example upon seeing a lower than otherwise expected rate of return can choose to invest their moneys received by IPONZ on 6 July 2011 in different financial products or with different financial institutions.

Financial institutions considering accepting new clients, 5 will typically require the client to establish that they have sufficient credentials in order to commence trading or investing in various financial products with a new institution. Therefore, it is necessary not only for the investor to receive information from institutions in a 10 secure manner, but in order to use the benefit of the data produced by the present invention in an efficient manner, it is also desirable for the investor to be able to securely identify themselves with a new institution in an efficient manner (so as to facilitate transfer of 15 investments from one institution to another in a timely manner, without the need to fill out extensive forms to repeat credentialing.) Appropriate credentialing is necessary not only to protect 20 a new institution against a failure of a client to settle their trades but it also protects the community as a whole against fraudulent practices associated with criminal conduct such as money laundering or unhelpful advice from a financial adviser. received by IPONZ on 6 July 2011 A need exists for an investor to be able to determine a personal rate of return for a given portfolio over a plurality of different time frames, so as to compare this value with published values, which may be based upon 5 different time frames and accordingly which may not be indicative of the portfolio performance of the investor and therefore otherwise unhelpful.

A need exists for the personal rate of return to include 10 adjustments relating to transaction costs, such as management fees, stamp duty, governmental charges, commissions, bank fees, margin costs, interest costs on borrowed money to fund a transaction, costs of currency conversion, some of which are typically referred to as 15 frictional costs.

A need exists for the personal rate of return to include factors which may alter the calculation of the market price of a financial product, which forms a component of the 20 portfolio based upon a plurality of factors such as share splits, dividend distribution, rights issues, share consolidation, name changes, code changes to redefine the identity of financial product all of which can structurally redefine the value of the product. received by IPONZ on 6 July 2011 Additional factors can also be included which permit the impact of gearing either being included or excluded, or the effect of large cash balances to provide analysis of the impact of pursuing a fully invested strategy. The return on 5 large cash balances can also be factored in either as a component of investment return in the portfolio or as a component of interest paid to the investor in the case of a cash account with a third party debit authority being given to a broker to settle trades. Thereby, giving rise to 10 interest on the account when not trading.

It is an object of the present invention to enable an investor to determine a personal rate of return for a given portfolio over a plurality of different time frames, so as 15 to compare this value with published values, which may be based upon different time frames and accordingly which may not be indicative of the portfolio performance of the investor and therefore unhelpful.

It is an object of the present invention to ensure that the personal rate of return can include adjustments such as transaction costs, management fees and brokerage which are typically referred to as frictional costs.

It is an object of the present invention to ensure that the personal rate of return can include factors which may alter received by IPONZ on 6 July 2011 the calculation of the market price of a financial product, which forms a component of the portfolio based upon a plurality of factors such as share splits, bonuses, rights issues, consolidations, dividend distribution, which may 5 structurally redefine the value of the product.

It is an object of the present invention to address or at least ameliorate some of the above disadvantages.

BRIEF DESCRIPTION OF INVENTION Accordingly, in one broad form of the invention, there is provided a method of dealing in an investment portfolio of an investor; said portfolio comprising a plurality of distinct investment elements administered by an at least 15 first financial institution on behalf of said investor; said method of dealing comprising a facility whereby the investor can move at least selected ones of said elements of the portfolio from a first financial institution to a second financial institution.

Preferably, agreements exist between the first financial institution and a data provider and the second financial institution and the data provider so as to facilitate the investor rapidly changing the elements of the portfolio from the first financial institution to the second 25 financial institution in a secure and credentialed manner. received by IPONZ on 6 July 2011 Preferably, the elements of the portfolio can be invested in a first financial product offered by the first financial institution.

Preferably, the elements of the portfolio can be invested in a second financial product offered by the second financial institution.

Preferably, said method further including a method for determining a personal rate of return over a plurality of time frames for a financial product included by said investor in a portfolio comprising the steps: a) obtaining data from a data provider; b) adjusting the data for frictional effects; c) allocating a first time; d) allocating a second time; e) determining the personal rate of return between the first time and the second time.

Preferably, said method further including quantifying a personal actual achieved rate of return over a plurality of time frames for a financial product investment included by an investor in a portfolio comprising the steps: a) obtaining data from a data provider including market data; received by IPONZ on 6 July 2011 b) adjusting the data for frictional effects; c) obtaining transaction data including transaction data in the form of personal actual amounts invested in said financial product investment; d) allocating a first time; e) allocating a second time; f) determining the personal rate of return between the first time and the second time as an output of the investment for said financial product thereby to compare performance and the components of performance relevant to said investor between a first financial product and a second financial product between said first time and said second time.

Preferably, adjustments are made to the data for structural 15 effects.

Preferably, adjustments are made for cash balances.

Preferably, gearing is included as an adjustment.

Preferably, frictional costs are included as an adjustment.

Preferably, said financial product investment includes a 20 portfolio of products. received by IPONZ on 6 July 2011 Preferably, said financial product investment comprises an investment in the same financial product over a different timeframe of investment.

Preferably, said components of performance include one or 5 more of quantification of frictional effects in a standardised manner, commissions, taxes, management fees.

Preferably, said method is applied to each said financial product in said portfolio thereby to derive a personal rate of return for said portfolio.] In a further broad form of the invention, there is provided a system for digital communication between at least a first financial institution and a data provider and a user; said digital communication between said data provider and said at least one financial institution being secure and 15 credentialed for and on behalf of said user to transfer digital data representative of elements of an investment portfolio; said system in digital communication with at least a second financial institution, and whereby said data provider can engage in a transaction to move at least 20 selected ones of said elements from a said first financial institution to a said second financial institution.

In another embodiment, the present invention relates to the field of investment portfolio analysis and more received by IPONZ on 6 July 2011 particularly to a method and apparatus for securely determining a personal investment return for a portfolio of financial products subject to particular investment decisions over a plurality of differing time frames in a 5 secure and credentialed system.

This embodiment of the present invention eliminates or at least partially ameliorates the problems associated with unhelpful and potentially misleading presentation of 10 published rates of return which may not represent a rate of return achieved over a time frame which is of benefit to an investor.

This embodiment of the present invention eliminates or at 15 least partially ameliorates the problem associated with unrepresentative rates of returns for financial products and portfolios which do not provide the investor with all relevant information.

This embodiment of the present invention eliminates or at least partially ameliorates the problem associated with artificially high rates of returns for financial products which do not include factors which may alter the calculation of the market price of a financial product, 25 which forms a component of the portfolio based upon a plurality of factors such as share splits, dividend received by IPONZ on 6 July 2011 distribution, currency conversion rates, which may structurally redefine the value of the product.

This embodiment of the present invention eliminates or at least partially ameliorates the problems related to detailed credentialing and security associated with an investor deciding to transfer a portion of their portfolio to a new financial institution based upon a comparison of their personal rate of return with a published rate of 10 return or against their own investment objectives.

This embodiment of the present invention eliminates or at least partially ameliorates the need for an investor to engage in the otherwise time consuming process of filling 15 out credentialing forms so as to enter into a secure trading arrangement with a new financial institution.

In one broad form of this embodiment of the invention there is provided a method for determining a personal rate of 20 return over a plurality of time frames for a financial product included by an investor in a portfolio comprising the steps: a) obtaining data from a data provider; b) adjusting the data for frictional effects; received by IPONZ on 6 July 2011 c) allocating a first time; d) allocating a second time; e) determining the personal rate of return between the first time and the second time.

Preferably, the method above wherein adjustments are made to the data for structural effects.

Preferably, the method above wherein adjustments are made for cash balances.

Preferably, the method above wherein gearing is included as 10 an adjustment.

Preferably, the method above wherein the investor can move elements of the portfolio from a first financial institution to a second financial institution.

Preferably, the method above wherein agreements exist 15 between the first financial institution and the data provider and the second financial institution and the data provider so as to facilitate the investor rapidly changing the elements of the portfolio from the first financial institution to the second financial institution in a secure 20 and credentialed manner. received by IPONZ on 6 July 2011 Preferably, the method above wherein the elements of the portfolio can be invested in a first financial product offered by the first financial institution.

Preferably, the method above wherein the elements of the portfolio can be invested in a second financial product offered by the second financial institution.

Preferably, a business method adapted to perform the steps above.

Preferably, software adapted to perform the steps above.

Preferably, a device adapted to perform the steps above.

Preferably, a portable device adapted to perform the steps above.

Preferably, a digital system adapted to perform the steps above.

Preferably, hardware adapted to perform the steps above.

Preferably, media adapted to perform the steps above including: a) a central processing unit; b) a memory storage device.

Preferably, the media which further comprises a control card. received by IPONZ on 6 July 2011 Preferably, the media which further comprises a graphics card.

BRIEF DESCRIPTION OF DRAWINGS Figure 1 discloses a preferred embodiment of the present invention in which a digitized system, which includes a computer and software, is adapted to calculate a personal rate of return for an investor.

Figure 2 discloses the steps involved in calculating a personal rate of return according to the embodiment shown in Figure 1.

Figure 3 discloses a graph of a plurality of different 15 rates of return calculated according to the embodiment disclosed in Figure 1.

Figure 4 is an expanded view of the computer disclosed in Figure 1, which includes media, adapted to calculate a 20 personal rate of return.

DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS Embodiments of the present invention will now be described 25 with reference to the accompanying drawings wherein: received by IPONZ on 6 July 2011 The term "method" is used in this specification can include in the alternative a business method.

Figure 1 discloses a method, system and apparatus according to a present embodiment.

As seen in Figure 1, —»se an investor 12 can use the computer 14 equipped with software 11 in order to 10 communicate with a data provider 16 so as to determine his or her personal rate of return 26. The investor 12 can then compare his or her personal rate of return 26 for his or her portfolio with rates of return for different financial products which can include a first financial product 22 and 15 a second financial product 24. Such calculations can also be used to compare the benefits of using a plurality of dollar cost averaging strategies (buying or selling on a number of occasions at discrete intervals over a period of time so as to average a buy or sell price). The investor 12 20 can then determine with the benefit of agreements 38 to switch the weighting of his or her investments between different financial products without the need to engage in what can otherwise be the completion of extensive paperwork and supporting documentation and accompanying delays. The 25 investor 12 can make a decision based upon a personal rate of return 26 which has been adjusted for frictional factors received by IPONZ on 6 July 2011 such as inflation, management costs, brokerage commissions, administrative charges and entry and exit costs and structural changes to the financial product.

The system 10 provides an apparatus which can include software 11. The apparatus according to the present embodiment as shown in Figure 1 can take the form of a computer 14.

The investor 12 operates the computer 14. The investor 12 can be provided with all software 11 necessary to obtain full functionality of the embodiment, according to a present embodiment. Alternatively, the investor 12 can obtain the results only.

The investor 12 can obtain a continuous download of data 13 from a data provider 16. The data provider 16 can provide the investor with pricing, transaction, dividend and other relevant information pertaining to the financial portfolio 20 of the investor 12. The data can include adjustments for frictional costs, which can include transaction costs, entry fees, exit fees, management costs, and other relevant factors which without limitation can reduce the rate of return of the investor's portfolio in respect to various 25 financial products. received by IPONZ on 6 July 2011 The investor 12 can purchase financial products from a first financial institution 18. The investor 12 can purchase financial products from a second financial institution 20. The investor can purchase a first financial 5 product 22 from the first financial institution 18. The investor can purchase a second financial product 24 from the second financial institution 24. The first financial product 22 and the second financial product 24 can be included in the investor's financial portfolio. 10 The institutional agreement 38 used in association with the computer 14 permits the investor 12 to transfer his or her dealings between the first financial institution 18 and the second financial institution 20 with a minimum of effort.

The communication between the first financial institution 18 and the investor 12 can be secure and credentialed. Credentialing can take a plurality of forms from the identification of the investor 12 for the purposes of ensuring disclosure of relevant taxation details, to 20 obtaining all necessary information about investor's investment holdings so as to form a comprehensive picture of the individual's particular investment needs. The communication between the first financial institution 18 and the second financial institution 20 can be secure and 25 credentialed. If the investor 12 is only credentialed to deal in a secure and authorized manner with the first received by IPONZ on 6 July 2011 financial institution 18 then the investor 12 can be required to complete extensive documentation in order to deal in a secure and credentialed manner with the second financial institution 20. The present embodiment can 5 provide agreements between the data provider 16 and the first financial institution 18 to enable the investor 12 to deal with the first financial institution 18 in a secure and credentialed manner according to a first credentialed communication 30. A plurality of different methods of 10 downloading of data 13 can be envisaged in which data can alternatively be directly downloaded from a financial institution or alternatively from another third party. The investor 12 can be credentialed to perform a download himself or herself. Alternatively, such credentialing 15 cannot be granted in an alternative embodiment, in which case the download will be performed by a third party for the investor 12 (the investor 12 then not having the knowledge personally as to how to download the data 13) . The present embodiment can provide an agreement 38 between 20 the data provider 16 and the second financial institution 20 to enable the investor 12 to deal with the second financial institution 20 in a secure and credentialed manner according to a second credentialed communication 28.

The first financial institution 18 and the second financial institution 20 can publish rates of return pertaining to a received by IPONZ on 6 July 2011 first financial product 22 and a second financial product 24. The investor 12 can calculate his or her personal rate of return 26 for comparison with published rates for a plurality of financial products by selecting a first time 5 34 and a second time 36, as shown in Figure 3, and then using the computer 14 which can include software 11 according to the present embodiment so as to determine the investor's personal rate of return 26. In a preferred embodiment the first time can be the time when the investor 10 12 first puts his or her moneys into a financial product.

The computer 14 can include instructions either in the form of software or hard coded instructions as hardware. Similarly, the computer 14 can include or be replaced by a 15 device which can be portable. The computer 14 can be incorporated into a digital system so as to perform the steps of the present embodiment. Further, the present embodiment can be included as a component of a business method.

Figure 2 displays the process that can occur in the computer 14.

Step 40 displays the step of downloading data from the data 25 provider 16. received by IPONZ on 6 July 2011 Step 42 shows updating for frictional effects an investor's portfolio.

Step 44 shows the updating of data pertaining to the 5 investor's portfolio for structural changes to a financial product, which can include share splits, bonus issues, dividend disbursement.

Once all data 13 has been updated for frictional and 10 structural effects the user can then select various time frames for determination of his or her personal rate of return 26. The investor can alternatively select the time frames by choosing a first time 34 and a second time 36 and then the data 13 can be updated for a given frame in 15 another preferred embodiment.

Step 46 pertains to the investor 12 selecting a first time.

Step 48 pertains to the investor 12 selecting a second 20 time.

Step 50 then shows the process of the computer 14 determining a personal rate of return 26 according to an embodiment 10. received by IPONZ on 6 July 2011 Step 52 shows the process of the investor 12 comparing his or her personal rate of return 26 with that of the personal rate of return for a first financial product 22. The investor can also compare their personal rate of return 26 5 with a plurality of other financial products which can include a second financial product 24. The first financial product can be offered by a first financial institution 18. The second financial product can be offered by a second financial institution 20.

Step 54 shows the process of the investor 12 using the personal rate of return, which has been adjusted for frictional costs and structural changes to the price of a financial product to determine whether or not to change 15 components of his or her investment portfolio.

IN USE In use the calculation of a personal rate of return 26 can 20 facilitate the determination of realistic performance standards for a typical investor 12. The investor 12 then has greater control over his or her investing strategy when equipped with such additional information and therefore is more informed to make an effective investment decision. In 25 addition other public benefits accrue in that institutions are also compelled to be more competitive and transparent received by IPONZ on 6 July 2011 and consistent in relation to their information disclosures.

In use the calculation of a personal rate of return 26 can 5 be used to rank portfolios and funds or other financial products upon daily monthly, quarterly, biannual or annual or other periodic basis so as to encourage greater competition between institutions offering financial products.

In use the embodiment 10, will enable an investor to dissect a packaged portfolio of financial products according to their own personal needs and experience, so as to obtain greater control and to act in a more informed 15 manner in deciding how to allocate his or her moneys.

In use the investor 12 is able to according to the present embodiment to compare the costs of a first product 22 and a second financial product 24 or different financial advisers 20 on a like-for-like basis, and use that information to provide assistance in negotiating lower costs or achieving other material benefits.

In use the investor 12 is able according to the present 25 embodiment to experiment with different possible choices of investment vehicles so as to be in a position to maximize received by IPONZ on 6 July 2011 his or her potential personal investment return 26. The investor 12 is thereby able to make appropriate selections based on similar analysis of actual historical information about various financial products that suit the investor's 5 individual needs. The lack of integration of frictional factors, structural factors and of the fixed time periods in data disclosing rates of return can create incorrect impressions or at the very least yield unhelpful comparisons. Accordingly, the embodiment can be used to 10 provide increased accuracy and transparency in the presentation of financial information.

Without real time integration of frictional and structural factors with pricing information then the process of 15 selection on the same basis would be extremely time consuming. The embodiment can produce results that appear counter intuitive in that standard published rates of return for various portfolios and funds, which can give rankings or returns that differ significantly in both 20 performance and ranking from those obtained from current published information. Investors can often be surprised to learn that various funds, can actually lead to negative rates of return once the timing of an investor's deposits and withdrawals are included. received by IPONZ on 6 July 2011 An embodiment can identify a loss of opportunity in relation to an investment portfolio, as indicated by a suboptimal return. Typically, large losses occur by moneys being eroded by the effects of inflation or by achieving a 5 lower return than other parts of a portfolio as investments lay in dormant assets or cash. In addition to eliminating problems associated with opportunity loss an embodiment can be used to check the accuracy of different data feeds and to provide mechanisms so that individuals can ensure the 10 completeness and the accuracy of information presented to individuals by institutions.

Figure 1 displays the communication of the investor 12 through the computer 14 with a plurality of entities which 15 can include a data provider 16 and a first financial institution 18 and a second financial institution 20. An embodiment according to Figure 1 can be used to cross check the accuracy of the respective data feeds received by the investor 12 so as to ensure that gaps or errors in 20 information received by the investor 12 are eliminated or highlighted.

The present embodiment is to be construed in a non limiting manner. Preferably, calculating the investor's personal 25 rate of return 2 6 over multiple time frames can be used to examine different investments scenarios. A plurality of received by IPONZ on 6 July 2011 different financial products can be examined. A plurality of different portfolios can be analyzed. A plurality of different frictional costs can be analyzed, and a plurality of different financial institutions can be compared 5 according to the actual experience of their existing customers or according to the actual activity of the investor. A plurality of different funds can be compared to determined their effective (net of frictional costs and other adjustments) rates of return. Similarly, a personal 10 rate of return 26 can be calculated in a plurality of differing ways. A personal rate of return 26 can be calculated against a normalized base starting figure of $1000 or the rate can be determined based upon an arbitrary starting figure. However, for graphical purposes a net 15 figure of $1000 can be used to display comparative investment performance.

Figure 3 displays a plurality of different financial products being compared on a single graph. The investment 20 amounts are normalized to a base amount 56. The base amount can be $1000 or another arbitrarily chosen figure. The performance of each financial product, net of frictional and structural adjustments is then compared. Surprisingly, to many investors, as indicated by the lower most graph in 25 Figure 3 a so called conservative or secure form of investment can often yield real losses as the investor's received by IPONZ on 6 July 2011 money is slowly eaten away as a result of frictional effects. Calculation of graphically presented investment returns can occur at a plurality of different points in time. These points can be substantially instantaneous, 5 subject to data feed delay, or of a more extended nature such as at the end of a day or a month. Further, the investor 12 can have the option of inputting their own transaction pricing dividend or other data into the computer 14 so as to update the analysis or to use the 10 embodiment to measure the returns achieved by the individual from transactions in assets for which there is no readily available market price, or to examine their personal rate of return for different time periods. Alternatively, an investor can input sample experimental 15 transactions to examine potential returns against actual returns or against other financial products.

Such calculations can include data that can be old. Such calculations can alternatively be based upon live data feeds.

The present embodiment also provides the user with the ability to select different time periods based upon taxation years. A user can conduct an analysis for the present taxation year or a previous taxation year. Further, 25 information can be used to assist in the preparation of taxation information for different taxation periods, be received by IPONZ on 6 July 2011 they quarterly or annual for example. Such material is also of assistance in helping investors and investment managers to estimate their cash flows on a quarterly basis.

In a further preferred embodiment, the embodiment can also distinguish between returns derived from dividend and other distributions within a portfolio and those derived from capital gains. Typically, this information can be quite useful in that various sectors of the market such as mining 10 stocks are often preferred for persons seeking short term capital gains whereas other sectors, such as a property stock can often only provide marginal forms of capital gain in the short term but can provide attractive dividends. Further, the calculation and reporting of returns on 15 capital gains and distributions can occur separately so as to conform to established reporting standards.

In a further preferred embodiment the investor can compare different returns produced by the embodiment with returns 20 calculated on the same basis which have been achieved by a plurality of other investors over the same time period. A further preferred embodiment can also provide a regulatory organization with a tool to enable it to objectively measure whether the investments made on an 25 investor's behalf by a financial institution on behalf of that investor actually go some way towards those goals. received by IPONZ on 6 July 2011 Figure 4 discloses an expanded image of the device 14 which includes a viewing screen 15, a computer processor 17 and a keyboard 21. The computer processor 17 includes media 19.

The media 19 can include a control card, a graphics card, a central processing unit and a memory storage device.

Claims (30)

Received at IPONZ 25 January 2012 -32-CLAIMS

1. A non-transitory computer readable medium containing computer program when executed by a computer configured to implement a method for dealing in an investment portfolio of an investor; said portfolio comprising a plurality of distinct investment elements administered and stored by an at least first financial institution on behalf of said investor; wherein one or more processors are programmed to perform the step including: establishing digital communication between said at least a first financial institution, at least a second financial institution and a user; said communication being secure and credentialed for said user to transfer digital data representative of elements of an investment portfolio; engaging in a transaction to move at least selected ones of said elements from said first financial institution to said at least a second financial institution..

2. The non-transitory computer readable medium of claim 1 wherein agreements exist between the first financial institution and a data provider and the second financial institution and the data provider so as to facilitate the Received at IPONZ 25 January 2012 -33 - investor rapidly changing the elements of the portfolio from the first financial institution to the second financial institution in a secure and credentialed manner.

3. The non-transitory computer readable medium according to claim 1 or 2 wherein the elements of the portfolio can be invested in a first financial product offered by the first financial institution.

4. The non-transitory computer readable medium according to claim 3 wherein the elements of the portfolio can be invested in a second financial product offered by the second financial institution.

5. The non-transitory computer readable medium of any one of claims 1 to 4; further includes a step for determining a personal rate of return over a plurality of time frames for a financial product included by said investor in a portfolio comprising the steps: a) obtaining data from a data provider; b) adjusting the data for frictional effects; c) allocating a first time; d) allocating a second time; Received at IPONZ 25 January 2012 -34- e) determining the personal rate of return between the first time and the second time.

6. The non-transitory computer readable medium of claim 5, further includes quantifying a personal actual achieved rate of return over a plurality of time frames for a financial product investment included by an investor in a portfolio comprising the steps: a) obtaining data from a data provider including market data; b) adjusting the data for frictional effects; c) obtaining transaction data including transaction data in the form of personal actual amounts invested in said financial product investment; d) allocating a first time; e) allocating a second time; f) determining the personal rate of return between the first time and the second time as an output of the investment for said financial product thereby to compare performance and the components of performance relevant to said investor between a first financial product and a Received at IPONZ 25 January 2012 -35 - second financial product between said first time and said second time.

7. The non-transitory computer readable medium according to claim 5 or 6 wherein adjustments are made to the data for structural effects.

8. The non-transitory computer readable medium according to claim 7 wherein adjustments are made for cash balances.

9. The non-transitory computer readable medium according to any of claims 5 to 8 wherein gearing is included as an adj ustment.

10. The non-transitory computer readable medium according to any one of claims 5 to 9 wherein frictional costs are included as an adjustment.

11. The non-transitory computer readable medium of any one of claims 5 to 10 wherein said financial product investment includes a portfolio of products.

12. The non-transitory computer readable medium of any one of claims 5 to 11 wherein said financial product investment comprises an investment in the same financial product over a different timeframe of investment. Received at IPONZ 25 January 2012 -36-

13. The non-transitory computer readable medium of any one of claims 5 to 12 wherein said components of performance include one or more of quantification of frictional effects in a standardised manner, commissions, taxes, management fees.

14. The non-transitory computer readable medium of any one of claims 5 to 13 wherein said implemented method is applied to each said financial product in said portfolio thereby to derive a personal rate of return for said portfolio.

15. A system for digital communication between at least a first financial institution and a data provider and a user; said digital communication between said data provider and said at least one financial institution being secure and credentialed for and on behalf of said user to transfer digital data representative of elements of an investment portfolio; said system in digital communication with at least a second financial institution, and whereby said data provider can engage in a transaction to move at least selected ones of said elements from a said first financial institution to a said second financial institution.

16. The system of claim 15 wherein agreements exist between said first financial institution and said data provider, Received at IPONZ 25 January 2012 -37- and, said second financial institution and said data provider so as to facilitate said user rapidly changing the elements of the portfolio from said first financial institution to said second financial institution in a secure and credentialed manner.

17. The system according to claim 15 or 16 wherein said elements of the portfolio can be invested in a first financial product offered by said first financial institution.

18. The system according to claim 17 wherein said elements of the portfolio can be invested in a second financial product offered by said second financial institution.

19. The system of any one of claims 15 to 18; said system further including a system for determining a personal rate of return over a plurality of time frames for a financial product included by said user in a portfolio comprising the steps: a) obtaining data from a data provider; b) adjusting the data for frictional effects; c) allocating a first time; d) allocating a second time; Received at IPONZ 25 January 2012 -38- e) determining the personal rate of return between the first time and the second time.

20. The system of claim 19, said system further including quantifying a personal actual achieved rate of return over a plurality of time frames for a financial product investment included by said user in a portfolio comprising the steps: a) obtaining data from a data provider including market data; b) adjusting the data for frictional effects; c) obtaining transaction data including transaction data in the form of personal actual amounts invested in said financial product investment; d) allocating a first time; e) allocating a second time; f) determining the personal rate of return between the first time and the second time as an output of the investment for said financial product thereby to compare performance and the components of performance relevant to said investor between a first financial product and a Received at IPONZ 25 January 2012 -39- second financial product between said first time and said second time.

21. The system according to claim 19 or 20 wherein adjustments are made to the data for structural effects.

22. The system according to claim 21 wherein adjustments are made for cash balances.

23. The system according to any of claims 19 to 22 wherein gearing is included as an adjustment.

24. The system according to any one of claims 19 to 23 wherein frictional costs are included as an adjustment.

25. The system of any one of claims 19 to 24 wherein said financial product investment includes a portfolio of products.

26. The system of any one of claims 19 to 25 wherein said financial product investment comprises an investment in the same financial product over a different timeframe of investment.

27. The system of any one of claims 19 to 26 wherein said components of performance include one or more of quantification of frictional effects in a standardised manner, commissions, taxes, management fees. Received at IPONZ 25 January 2012 -40-

28. The system of any one of claims 19 to 27 wherein said system is applied to each said financial product in said portfolio thereby to derive a personal rate of return for said portfolio.

29. A system for digital communication between at least a first financial institution and a data provider and a user as claimed in claim 15 and as substantially hereinbefore described with reference to the accompanying drawings.

30. A non-transitory computer readable medium as claimed in claim 1 and as hereinbefore described with reference to the accompanying drawings.