Art by Mary Kate McDevitt
FOR THE SEVENTH iteration of the Power 100, confidence is key, and as we approach potentially choppy waters in 2019, maintaining that confidence will be essential to timing the markets. That’s why these asset owners are the best of the best in 2018.
It’s easy to flourish in a bull market, but as we saw this year, anything can happen in an instant. Throughout a swath of selloffs and rallies, these esteemed asset owners kept their cool (and their patience) to deliver stellar returns and innovate new concepts to their strategy as they rolled with 2018’s punches.
Speaking of innovation, our selections took full advantage of their abilities to secure their slots, (innovation accounts for 50% of our methodology). They also made their best effort to reach out to their peers and collaborate some of the highest-profile deals of the year.
Chris Ailman, Britt Harris, and Robin Diamonte have kept their 2017 spots in our top five leader bracket, but they are joined by Lim Chow Kiat and Ash Williams, who have made dramatic ascensions from their #10 and #13 ranks of last year.
—CIO
THE EQUATION (Click for more information)
- 50 Innovation
- 20 Collaboration
- 10 Talent Development
- 15 Fund Size
- 5 Tenure
- =100 Overall Score
The Innovation Factor
Power in institutional investing stems from ideas and innovation—concepts that factor massively into our ranking of the world’s most powerful asset owners. That’s more important now than ever as the pace of change accelerates, which is why the category now has a higher weighting than prior years.
50for the recent invention of a new system of investing (e.g. The Yale model, liability-driven investing).
40for a wholesale change of asset allocation, risk management, portfolio construction, and manager selection methods at the institution, or for exemplary leadership and innovation relating to a major industry issue.
30for the beginnings of change to the portfolio, through one or more of the traditional CIO job responsibilities, or for leadership and innovation relating to a significant industry issue.
20for managing assets with aptitude while navigating industry challenges and trends with savvy.
TIE BREAKER In case of a tie in total score, the asset owner with a larger sum of innovation and fund size factor received the higher rank, emphasizing the importance of innovation at scale.
The Collaboration Factor
Influence is multiplied when ideas are shared—most often through co-investing, sitting on the investment committees of other institutions, actively participating in industry trade groups, publishing, and ongoing engagement with other CIOs.
20for those who aggressively participate across all major collaboration outlets.
10for those who actively participate in knowledge sharing via some, but not all, collaboration outlets.
0for those who only occasionally collaborate with their peers, but are generally insular.
TIE BREAKER In case of a tie in total score, asset owners with a larger sum of innovation, collaboration, and talent development scores took the higher rank.
The Talent Development Factor
Developing future CIOs is essential for this industry—and for anyone who claims to have power in it, for there are few better ways to expand your influence than through strong teams and alumni.
10for the continuous development of talent that either departs to lead other institutions or stays to enhance a team’s strengths.
5for moderate levels of talent development, defined as occasionally seeding the leadership of other institutions.
0for working in a one-person shop, where (by definition) talent development is not an option.
TIE BREAKER In case of a tie in total score, asset owners with a larger sum of innovation, collaboration, and talent development scores took the higher rank.
The Fund Size Factor
15>$250B (USD)
14 – 12$250B – $100B
11 – 10$100B – $50B
9 – 7$50B – $20B
6 – 5$20B – $5B
4 – 3$5B – $1B
2 – 1<$1B (USD)
TIE BREAKER In case of a tie in total score, asset owners with a larger sum of innovation, collaboration, and talent development scores took the higher rank.
The Tenure Factor
Time spent as an asset owner carries weight—the longer the better.
520+ years
420 – 15 years
315 – 10 years
210 – 5 years
15 – 0 years
TIE BREAKER In case of a tie in total score, asset owners with a larger sum of innovation, collaboration, and talent development scores took the higher rank.