Patent ID: 8712899

Claim:
A computer-implemented method for managing an institutional investment portfolio on an income reinvestment basis during a mandate term, the method comprising: (a) determining, by a computer, an average initial income yield of one or more selected investments; (b) determining, by the computer, a fundamental rate of return based on the average initial income yield and a growth rate of a selected value indicator; (c) allocating, by the computer, an initial amount of capital to be invested during the mandate term in the one or more investments, wherein the one or more investments include equity-based investments, bond-based investments, real property-based investments, or a combination; (d) establishing, by the computer, a first income goal for a first period of the mandate term, the first income goal determined by multiplying the initial amount of capital by the average initial income yield; (e) generating, by the computer, a second amount of capital for a second period of the mandate term by increasing the initial amount of capital during the first period by the fundamental rate of return; (f) generating, by the computer, a second income goal for a second period of the mandate term, the second income goal determined by multiplying the second amount of capital by the average initial income yield; and (g) repeating (e) and (f), by the computer, for any subsequent periods of the mandate term based on the amount of capital and the income goal of the respective preceding period.