Asset Allocation and Wealth Management Business (FIN541)

FIN541 Asset Allocation and Wealth Management Business provides a comprehensive understanding of asset allocation principles, tools and strategies for wealth management. The course provides an overview of the latest global developments in wealth management as a result of economic development, government policies and international capital flow with special focus on the impact from digital technology. It explores the wealth management needs of a range of investors from institutions to high-net-worth individuals and family businesses and how their unique and complex needs can be met by a well-developed wealth planning approach. The core of this approach is the asset allocation process which plays a central role in helping clients achieve their financial goals while managing risks. The course will guide students through the portfolio construction process, beginning with the analysis of investment needs, followed by the development of an asset allocation based on modern portfolio theory, and culminating in the construction of a live portfolio through the selection of individual asset class building blocks. It will also cover the portfolio management process, including tactical asset allocation in response to evolving market dynamics, as well as portfolio risk management and performance measurement. The course will also introduce and discuss the latest trends in the industry, such as sustainable, responsible and impact investing (SRI), digital assets, alternative investments, artificial intelligence and passive investment strategies. Overall, the course aims to equip wealth management professionals with a practical understanding of the wealth management business, along with the knowledge and skills to navigate the asset allocation process and implement it effectively in a live portfolio.

• Global emerging trends in the asset allocation and wealth management business
• Wealth management needs of a diverse range of investors, including institutions, high-net-worth individuals, and family-owned businesses
• Importance of Asset Allocation - Balancing risk and return; diversification effect of investment portfolio
• Asset Allocation - historical development and strategies
• Asset Allocation Process - portfolio construction
• Asset Allocation Process - optimisation techniques, tactical asset allocation, and manager selection
• Asset Allocation Process - risk management and performance measurement
• Understanding and evaluating traditional and alternative asset classes
• Behavioural finance: investors’ mindset and decision making, and impact on financial markets
• Sustainable, responsible and impact investing: concepts, investment vehicles and strategies
• Current trends in the industry including alternative investments, passive investment strategies and digital assets
• Role of Technology

• Assess the global emerging trends in the asset allocation and wealth management business
• Examine the unique asset allocation demands for wealth management across a range of investors
• Appraise the key elements of the asset allocation process and how they influence investor wealth management needs
• Design and construct an investment portfolio from understanding investor needs to asset allocation and optimisation
• Construct a live portfolio through selecting building blocks, tactical asset allocation in response to market dynamics and risk and performance management
• Evaluate and implement portfolios incorporating ESG elements, alternative investments, digital assets and passive investment strategies