A system for and method of investing a lump sum amount in order to return N periodic
installments at a specified confidence level. A set of candidate investment instruments
is selected from a universe of investment instruments. Data regarding the returns
of the candidate investment vehicles during preceding periods is collected. Based
on the data, minimum expected returns at the confidence level (MER) from each investment
vehicle at the return date of each installment is compiled. Investment vehicles
are selected for each of the N periods, with the selection criteria maximizing
the MER for each of the respective periods. A normalization factor is developed
that is based on the MERs of the selected investment vehicles, for the associated
respective periods. An amount is allocated to each selected investment vehicle,
and the allocated amount is established in accordance with a respective investment
factor attributed to each investment vehicle, where the investment factor is based
on the MER of the investment vehicle at a corresponding installment date.
