International Investment Expert Ren Y. Cheng Visits National Taipei University to Discuss Systemic Risk
The Department of Finance and Cooperative Management at National Taipei University held a special lecture on October 16, 2026, inviting Mr. Ren Y. Cheng, Senior Advisor for Investment Strategy and Business in Greater China at Fidelity Investments, to deliver a talk titled “Emerging Risks in 21st-Century Financial Markets.” The lecture explored why volatility in global financial markets has become increasingly severe. Drawing on the scientific principles of nonlinear dynamical systems, Mr. Cheng introduced new perspectives for understanding markets shaped by electronic information networks in the 21st century and provided an in-depth analysis of systemic risk. The event was one of the key activities under the department’s industry-academia collaboration program with Fidelity Securities Investment Trust for the current academic year, titled “Fidelity Sustainable Finance Leadership: Academic Research and Professional Talent Development.” The initiative aims to deepen students’ understanding of international financial markets and corporate sustainability.
Professor Wen Chyan Ke, Chair of the Department of Finance and Cooperative Management, delivered the opening remarks and presented a certificate of appreciation to Mr. Cheng, thanking him for taking the time to visit the university and share his valuable professional experience. The lecture attracted enthusiastic participation from faculty members and students, who gained new academic perspectives from an international asset management expert. Before the lecture, several faculty members also engaged in in-depth discussions with Mr. Cheng on practical and academic issues, making the event a rewarding experience for all participants.
The “Father of Target-Date Funds” Explains Market Synchronization Through the Millennium Bridge
Mr. Cheng is highly regarded in the investment industry. He previously served as Chief Investment Officer and Portfolio Manager of Fidelity Investments’ International Asset Allocation Group. Since joining Fidelity in 1994, he has contributed to the development of the groundbreaking Target-Date Fund (TDF), earning him the industry nickname “the Father of Target-Date Funds.” He has also helped advance the 529 college savings plan, accumulating extensive experience in international finance.
During the lecture, Mr. Cheng used the dramatic swaying of London’s Millennium Bridge when it opened in 2000 to illustrate that synchronization is a fundamental characteristic of interconnected nonlinear systems. He explained that, from the perspective of each pedestrian on the bridge, adjusting one’s steps to match the bridge’s movement is the most “rational” individual response. However, when everyone does the same thing, the bridge sways even more violently, prompting more pedestrians to synchronize their movements and creating a self-reinforcing positive feedback loop. Mr. Cheng emphasized that the individually “optimal” strategy can often be far removed from the optimal outcome for the system as a whole.
From Normal Distributions to Fat-Tailed Risk: Rethinking Diversification
Mr. Cheng further drew parallels between the Millennium Bridge and today’s financial markets. In the 21st century, where electronic information networks play a dominant role, the global financial system has become increasingly interconnected, causing market participants’ behaviors to become more synchronized. Through simulations of linear and nonlinear probabilistic systems, he demonstrated that when pedestrians walk independently, the number of footsteps on the bridge per second follows a normal distribution. Once pedestrians become interconnected and begin moving in sync, however, the distribution’s central peak collapses and its tails become heavier, significantly increasing the frequency of extreme events. This phenomenon, he explained, helps account for the growing frequency of severe turbulence in global financial markets.
Mr. Cheng also raised thought-provoking questions: If everyone diversifies their investments in the same way, can diversification still be effective? If everyone adopts the same “optimal” model, will the outcome still be optimal? He cautioned that the widespread adoption of passive investing may lead investors to exchange active risk for passive risk, which can be amplified by synchronized behavior. Whether to “walk in sync” with the market, he stressed, should be a decision made only after careful consideration. Faculty members and students came away with a deeper appreciation of how understanding the mechanisms behind systemic risk is essential to building resilient investment portfolios and advancing sustainable finance.
Strengthening Industry-Academia Collaboration and Global Engagement to Cultivate the Next Generation of Sustainable Finance Professionals
The industry-academia collaboration between the Department of Finance and Cooperative Management at National Taipei University and Fidelity Securities Investment Trust goes beyond integrating ESG principles with academic resources. Its key initiatives include “Sustainable Data Research and Academic Publications,” the “Fidelity Sustainable Development Scholarship,” and subsidies for “Sustainability Certifications and Practical Engagement.”
Looking ahead, the Department of Finance and Cooperative Management at National Taipei University will continue to deepen students’ understanding of sustainable investment and risk management through industry-academia partnerships, academic forums, and professional exchanges. Through these initiatives, the department aims to cultivate a new generation of finance professionals in Taiwan equipped with an international outlook, practical expertise, and a strong commitment to sustainability.
Time：2026-10-29 16:36:04