Patent ID: 7117175

Claim:
A computer-implemented method of managing assets comprising: managing a virtual mutual fund wherein said virtual mutual fund comprises a collection of assets managed collectively but tracked separately with separately owned lots on behalf of a plurality of investors; providing a computer database associating a plurality of lots owned by each of said plurality of investors and associating said plurality of lots as tradeable regardless of initiator of the purchase of said plurality of lots; providing lot selection rules; receiving a requested trade; selecting a lot for trading from said plurality of lots using said computer database, said lot selection rules, and said requested trade; providing taxation rules; determining if a trade using said selected lot should be deferred using the computer database and said taxation rules; generating a deferred trade in a tax-managed sub-account if it is determined that said requested trade should be deferred; and selecting said deferred trade in said tax-managed sub-account for execution if it is determined that said deferred trade should no longer be deferred using said computer database and said taxation rules.