Patent ID: 7107229

Claim:
A computer-implemented method of allocating funds in an investment portfolio, comprising: (a) selecting a financial data element by which to measure a value of a set of publicly traded securities; (b) selecting a universe of securities from the set of all publicly traded securities; (c) calculating the total size of the entire universe of securities by summing the values of each security in the universe of securities, (d) assigning an industry classification to each security in the universe of securities and assigning each security into an industry group based on the industry classification; (e) calculating, using the data processing system, an industry size for each industry group for which at least one security in the universe of securities has been classified into the industry group by summing the values of the securities assigned to the industry group; (f) calculating, using the data processing system, relative industry size for each industry group for which at least one security in the universe of securities has been classified into the industry group by dividing the industry size for the industry group by the population size of the entire population of securities; (g) generating, using the data processing system, an industry allocation for the funds in an investment portfolio such that the total percentage of the funds in the portfolio which will be invested in securities assigned to a particular industry group is based on the relative industry size of the industry group; and (h) generating, using the data processing system, a list of securities in which to invest the funds in an investment portfolio such that the number of securities selected for investing from a particular industry group is based on the relative industry size of the industry group.