Katie Wheeler applied to the University of Michigan to study how private-sector approaches could be deployed in the public sector, but ended up with far more than classroom-based learning. She was soon shaking up a $500,000 student-run fund to scrutinise the effectiveness of the social enterprises in which it invests.
Ms Wheeler is one of a growing number of students seeking ways to make an impact while they are learning — acquiring practical skills in line with their personal values and which they can apply in their professional lives.
“Action-based learning of the best kind” is how Ms Wheeler describes the Ross School of Business’s pioneering Social Venture Fund. Upon graduation, she hopes to work for an investor or developer in affordable housing. “I’m interested in cross-sector collaboration and innovative ways to finance equitable development,” she says.
Kurt Buchbinder’s passion is for the environment. After five years at bond group Pimco, he opted for an MBA at Tuck Business School at Dartmouth, to pursue what he calls a “more impact-oriented career”. The Californian says: “I feel strongly about ocean conservation as well as water-saving technologies since California is perennially in a drought.”
Katie Wheeler of the University of Michigan
The course appealed to him because the school operates multiple student-managed social impact funds. With fellow students and faculty, he has since launched the Tuck ESG Fund, which uses environmental, social and governance (ESG) factors in deciding how its managers will invest $100,000.
Like the University of Michigan, Tuck’s student-led experiential projects have three characteristics: a focus on financial as well as social returns; integration into the curriculum; and a breadth of approaches to help develop different skills.
“To equip the next generation of investment professionals who can credibly assess ESG risk/opportunities . . . it’s increasingly important to offer the full spectrum of learning across asset classes, representing more of a total portfolio approach to sustainable investing,” says John McKinley, Tuck’s executive director of the Center for Business, Government and Society.
Kurt Buchbinder, Tuck School of Business
Some funds offer venture capital for early-stage companies, while others focus on investing in equities or bonds. St Xavier University in Chicago oversees the Cougar Student Managed Hedge Fund, part of an undergraduate derivatives course in its Graham School of Management.
“We see a lot of enthusiasm,” says Georges Dyer, executive director of the Intentional Endowments Network, which encourages university endowments to switch to more sustainable investments, and created Siilk to promote student-led funds and sustainability in school curriculums. and investor activism.
While some student funds are supported by a benefactor or donations from students, others manage a share of their university endowment directly. Examples include the Sustainable Investment Fund at Haas school of business at the University of Berkeley, and Desautels Capital Management Socially Responsible Investment fund at McGill in Montreal.
Some projects such as Wharton’s Impact Venture Associates prepare investment cases and then seek external support through crowdfunding, while others have formed partnerships with external funds.
Another option is the Turner MBA Impact Investing Network and Training (Miint) competition, which gets students to pitch for a $50,000 investment. Brian Trelstad, an impact investor who helps oversee it, says: “We provide the one-stop shop. Many schools have their own funds but have found real value in attending the competition to sharpen their saw against others.”
There are two problems in the expansion of such initiatives. The first, as he concedes, is that “the demand for impact investing jobs currently vastly exceeds the supply”.
That inspired Steven Petterson, a graduate of the University of British Columbia, to follow his passion by founding the National Social Value Fund, which raises money and uses students at universities across Canada to identify and invest in local “social purpose” businesses.
The second is that business schools are not the only source of demand. New York University’s Impact Investment Fund draws on students from business, public service and law schools. It backed Sapient Industries, which uses machine learning to improve electrical grid efficiency, and has itself been deployed on campus to reduce carbon footprint.
At the extreme, Mr Petterson has resolved to work only with undergraduates. “There’s a lot less ego and they are much more intentional,” he says. “One professor even said they even outperform the MBAs. We don’t want everyone just coming from business or they talk exactly the same.”
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
