Patent ID: 8589276

Claim:
An index construction method comprising: determining, by at least one computer processor, a proportional fundamental index weight for each index constituent financial objects based on at least one objective measure of scale associated with said entities or said financial objects; wherein said at least one objective measure of scale comprises a financial metric associated with one of said entities or said financial objects other than the market capitalization of said entities or the price of said financial objects; wherein said financial metric comprises any two or more of: book value; sales; cash flow; or any dividends; and managing, by the at least one computer processor, a portfolio of financial objects based on said index of financial objects, wherein said managing comprises at least one of: adjusting, by the at least one computer processor, the financial objects that comprise said portfolio based on changes to the at least one objective measure of scale used to weight a plurality of financial objects used to construct the index of financial objects; adjusting, by the at least one computer processor, relative weightings of the financial objects that comprise said portfolio based on changes to the at least one objective measure of scale used to weight the plurality of financial objects used to construct the index of financial objects; rebalancing, by the at least one computer processor, relative weightings of the financial objects that comprise said portfolio when the weighting of one or more of said financial objects at least one of: exceeds a threshold value, or deviates from a target weight; or rebalancing relative weightings of the financial objects that comprise said portfolio to minimize turnover of said financial objects.