Learning Objectives:

  • Understand the principles of algorithmic portfolio management.

  • Explain modern portfolio theory and its application to digital investing.

  • Analyse asset allocation and diversification strategies.

3.1 Algorithmic Portfolio Management

The GTC Group course covers “Algorithmic trading models and implementation” and “Risk management and portfolio optimization algorithms” . The SUSS course requires students to “Create portfolio management strategy in the digital economy” .

Key Components:

  • Algorithm-Based Investment Strategies: The Wharton course teaches “how to apply the ideas behind robo-advising and crowdfunding to better assess and leverage a more optimized portfolio while managing risks” .

  • Automated Portfolio Rebalancing: Dynamic adjustment of portfolio weights to maintain target allocations.

  • Risk-Return Optimisation: Balancing risk and return through algorithms.

3.2 Modern Portfolio Theory and Digital Investing

The Fudan University course covers “Modern Portfolio Theory” as a core topic . The Wharton School programme covers “Modern Portfolio Theory” as a foundational theory for robo-advising and crowdfunding .

Key Concepts:

Asset Allocation:
The Fudan University course covers “How asset allocation works for personal and corporate portfolios” and “Risk and return balancing through robo-advisors” [citation:5,9].

Diversification Strategies:
The Fudan University course covers “Algorithm-based diversification for individuals and corporations” and “Using robo-advisors for automated portfolio optimization” [citation:5,9]. Case studies include “Betterment’s asset allocation model (how Betterment uses algorithms to balance portfolios for clients), Wealthfront, BlackRock’s Aladdin (platform which helps corporate clients, including pension funds and sovereign wealth funds to allocate capital efficiently across global assets)” [citation:5,9].

3.3 Corporate Wealth Management Automation

The Fudan University course covers “Corporate robo-advisors for institutional investors” and “Streamlining corporate asset management” [citation:5,9]. The SUSS course covers “Portfolio management in a digital economy” as a core topic .

Key Features of Corporate Robo-Advisors:

  • Management of complex corporate portfolios.

  • Integration with enterprise systems.

  • Advanced risk management and compliance features.

  • Scalability for institutional asset allocation..

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