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FOR THE SIXTH iteration of the Power 100, CIO welcomes you to the Age of Innovation. In 2011, the largest publicly traded companies by market capitalization were Exxon, Apple, PetroChina, Shell, and the Industrial and Commercial Bank of China.

Just five years later that list had morphed into Apple, Alphabet, Microsoft, Amazon, and Facebook. That changing of the guard is a sign of the times, with technology innovators sidelining old economy stalwarts in energy and finance. Asset owners and managers need to cultivate a similar mindset based on innovation to thrive (or even survive).

As in the economy, innovation is also far more important in our methodology now. It counts for 50 out of 100 as opposed to the prior 30. For asset owners who can innovate in these rapidly shifting times, well, more power to them!

Rapid risers in these year’s ranks include University of California CIO Jagdeep Bachher, who revamped its $110 billion asset allocation and alternative manager selection, delivering returns of 14% over the last 11 months. Bachher is also a thought leader when it comes to all things tech and innovation from his perch on the West Coast.

We check in with Chris Ailman, the CIO of the California State Teachers’ Retirement System, which manages close to $200 billion. Ailman is spearheading the North American efforts of the 300 Club, an organization dedicated to rethinking asset ownership and financial markets as we know them.

Also weighing in: Britt Harris, whose move to UTIMCO underscores another key trend of the year—asset owners taking up new challenges. —CIO

VIEW POWER 100 LIST

THE EQUATION (Click for more information)

  1. 50 Innovation icon
  2. +20 Collaboration icon
  3. +10 Talent Development icon
  4. +15 Fund Size icon
  5. +5 Tenure icon
  6. =100 Overall Score
 

The Innovation Factor icon

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 icon

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 icon

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 icon

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 icon

Time spent as an asset owner carries weightthe 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.