Patent ID: 7769659

Claim:
A method of managing an investment portfolio comprised of assets allocated among a plurality of investments in accordance with a preferred asset allocation using a computer system having a memory, the method comprising the steps of: storing information relating to the preferred asset allocation in the memory; storing information relating to the plurality of investments in the memory; using the computer system, determining the current asset allocation of the investment portfolio; using the computer system, comparing said current asset allocation with said preferred asset allocation to determine whether said current asset allocation is substantially in accordance with said preferred asset allocation; in response to the determination that said current asset allocation is not substantially in accordance with said preferred asset allocation, identifying one or more transactions and the associated transaction costs for reallocating the assets of the investment portfolio to be substantially in accordance with said preferred asset allocation, the identification made using the computer system; and using the computer system, reallocating the assets of the investment portfolio to be substantially in accordance with said preferred asset allocation the reallocation using one or more transactions selected by the computer system from the one or more identified transactions as having the lowest associated transaction costs.