Since our last issue, SWFI has engaged in an ambitious research project developing a rankings table specifically geared toward the top business schools for public investors. The inspiration for the project came from our fund profiles. What we noticed was, along with the top accustomed schools, several prominent executives came from smaller universities, or schools with unfamiliar names. This piqued our curiosity about who was really managing these funds, and where they were educated. There are countless rankings lists that sort schools by the number of programs they have or their cost to attend, but there has never been a ranking that incorporated the number of graduates that went on to manage public money.
Although other lists are a good start to give a graduate an idea about where to study, we wanted to focus on outcomes – ostensibly the most important factor in determining whether to attend a business school. Thus, although we too considered factors such as acceptance rate, and student-faculty ratio, a much heavier weighting was placed on the number of graduates that appeared at the highest levels of sovereign wealth funds, public pensions, endowments, central banks and other public funds.
For a career in public finance, the following schools are the top 30 in the world…
|Rank||Name||Graduate School Name|
|1||Stanford University||Stanford Graduate School of Business|
|2||Harvard University||Harvard Business School|
|3||University of Pennsylvania||Wharton School of Business|
|4||The University of Chicago||Booth School of Business|
|5||Columbia University||Columbia Business School|
|6||University of Texas at Austin||McCombs School of Business|
|7||Yale University||Yale School Of Management|
|8||University of London||London School of Economics|
|9||McGill University||Desautels Faculty of Management|
|10||Massachusetts Institute of Technology||Sloan School of Management|
|11||Stockholm School of Economics*||Stockholm School of Economics|
|12||University of London||London Business School|
|13||Norwegian School of Economics||Norwegian School of Economics|
|14||Western University (Ontario)||Ivey Business School|
|15||Northwestern University||Kellogg School of Management|
|16||New York University||Stern School of Business|
|17||York University||Schulich School Of Business|
|18||Duke University||Fuqua School of Business|
|19||Cornell University||Johnson Graduate School of Management|
|20||UCLA||Anderson School Of Management|
|21||City University of London||Cass Business School|
|22||Boston University||Boston University School of Management|
|23||University of Maryland||Robert H. Smith School of Business|
|24||University of Toronto||Rotman School of Management|
|25||Universita Bocconi||SDA Boccini School of Management|
|26||American University||Kogod School of Business|
|27||University of Missouri||Robert J. Trulaske, Sr. College of Business|
|28||Georgetown University||McDonough School of Business|
|29||Aalto University||Helsinki School of Economics|
|30||Louisiana State University||E.J. Ourso College of Business|
The largest factor in the rankings was the number of public institutional investor executives who attended the business school. Other quantitative factors include school acceptance rates, faculty-to-student ratio and rejection rate. SWFI editorial staff had final say on the rankings. The sample size of public institutional investor executives was 300. 62% of the sample were from pension funds and public funds, while 48% were from sovereign wealth funds. Common job titles were chief investment officer, president, senior vice president and director.
Gaw Capital Sells Cross Tower Shanghai Building
Hong Kong-based Gaw Capital Partners has agreed to sell the Cross Tower, a 24-storey commercial building in Shanghai, to World Union Investment Management, for 2.66 billion RMB (US$ 402 million). The tower is located in the Huangpu district.
RDIF Portfolio Company Geopharm Plans to Increase Insulin Production
Russia-based Geopharm is a portfolio company of the Russian Direct Investment Fund (RDIF). Geopharm signed a special investment agreement with the City of St. Petersburg, Russia. Geopharm plans to invest more than 3.3 billion rubles in building a complex to meet insulin production demands.
Norway’s KLP to Exclude Companies with Oil Sands Extraction via Revenue Threshold
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The New Zealand Superannuation Fund (NZ Super) has resumed receiving contributions from the New Zealand government in the face of rising obligations as an increasing proportion of the country’s population approaches retirement. According to a statement released by the fund’s managing Board of Guardians, the government plans on investing US$ 5.3 billion into NZ Super between now and June of 2022, with the first payment scheduled for December 15, 2017.
Policymakers believe the resumption of government contributions, which were halted in July of 2009, is expected to ease the burden on the country’s current taxpayers and future generations. Withdrawals from NZ Super are expected to peak in 2078, at which point the fund will be covering 12.8% of New Zealand’s pension obligations. The new wave of contributions will initially be invested in passive, low cost equity and bond investments, according to Catherine Savage, Chair of the Guardians.
Recent Performance & Leadership Change
NZ Super has enjoyed one of its best annual performances since its founding in 2001, with a reported return of 20.7% before tax for a 12-month trailing period ended June 30, 2017, up 5 billion NZD (US$ 3.6 billion) compared to 2016. NZ Super generated 21.85% annual return in its global equities, developed market portfolio, according to its 2017 annual report.
NZ Super faces a changing of leadership in the coming year with the exit of chief executive Adrian Orr, who will leave the Fund officially in March of 2018 to serve a five-year term as Governor of the Reserve Bank of New Zealand. Mr. Orr has earned a spot numerous times in the Sovereign Wealth Fund Institute’s Public Investor 100 annual ranking over the years, most recently in 2017 at #3.
Card transaction platform iZettle AB has raised another US$ 47 million in Series E funding, this time with new backing from Sweden’s AP4 and early-stage venture capital firm Dawn Capital. Previous investors in the Stockholm-based payments business include American Express, MasterCard, Intel, and Spain’s Santander Group. With US$ 235 million in equity to date, iZettle is quickly approaching an estimated valuation of US$ 1 billion.[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]
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