Overview

2019 Event organized by:

Case Topic: Robo Advisor Design

Offering effective financial advice to small-balance customers has always been a challenge for investment managers due to the lack of sufficient fee revenue to cover servicing costs. Financial technology may be the solution! The first fully-automated, web-based Robo Advisors began operations in 2008, have experienced rapid growth and now manage over $300 billion in assets.*

The 2019 IPCC case includes a description of a mid-sized mutual-fund company that seeks to introduce their own automated financial advisory service. Student teams will need to study the unique characteristics of the firm and design a state-of-the-art asset allocation process that integrates the firm’s current investment offerings and perhaps supplements it with others. Teams will need to decide what customer information to request, how to deliver the advice and how to price the service. Students will have the opportunity to think outside the box and apply their asset allocation modeling skills to this special challenge based on the current investment business environment.

*Phoon and Koh, Journal of Alternative Investments, 2017