NEW YORK & NEWPORT BEACH, Calif.--(BUSINESS WIRE)--GMI Ratings, the leading provider of research on environmental, social, governance (ESG) and accounting-related risks affecting the performance of public companies, today announced that executives from GMI and from leading index provider, FTSE, will be speaking today at GMI’s Conference: The Future of Corporate Reform. GMI’s President and CEO, Dan Concannon, will share the stage with FTSE’s Head of ESG Service Unit, Kevin Bourne, and Head of FTSE’s ESG Analytics, Gordon Morrison, to discuss the increased demand for enhanced governance measurements, such as GMI’s Forensic Alpha Model (FAM™).
GMI’s FAM is designed to use forensic accounting and governance-related measures of issuer risk to efficiently gain exposures to themes that investors identified as sustainable drivers of investment return. The FAM has been back-tested across multiple geographic regions and market capitalizations with consistent out-of-sample results.
“FTSE is a leading provider of innovative index products across the globe,” said Concannon. “We look forward to continuing our partnership combining FTSE’s technical capabilities alongside our Forensic Alpha Model to develop new investable products for both traditional and alternative investors.”
Industry and academic research from the University of Toronto, U.C. Berkeley and University of Chicago indicates that fraud drives an average decline of 22% in enterprise value and results in an overall reduction in return in the U.S. equity markets of 3% per year.
“Governance is of increasing importance to investors and we have been encouraged by the initial findings of the research into GMI’s Forensic Alpha Model. We look forward to building on this as we continue to further strengthen FTSE’s products of benchmark indices linked to ESG factors,” said Mr. Bourne.
About GMI Ratings
GMI Ratings is an independent provider of research and ratings on environmental, social, governance and accounting-related risks affecting the performance of public companies. The firm’s ESG ratings for more than 6,000 companies worldwide incorporate 150 ESG KeyMetrics™ to help investors assess the sustainable investment value of corporations. The firm also provides Accounting and Governance Ratings (AGR®) for approximately 18,000 public companies worldwide. AGR metrics reflect the accuracy and reliability of a company’s financial reporting. Clients of GMI Ratings include leading institutional investors, banks, insurers, auditors, regulators and corporations seeking to incorporate accounting and ESG factors into risk assessment and decision-making. A signatory to the Principles for Responsible Investment (PRI), GMI Ratings was formed in 2010 through the merger of GovernanceMetrics International, The Corporate Library and Audit Integrity. In the 2012 Independent Research in Responsible Investment (IRRI) Survey conducted by Thomson Reuters Extel and SRI-CONNECT.com, GMI Ratings was named “The Best Independent Corporate Governance Research Provider”. For more information please visit www.gmiratings.com.
FTSE is a global leader in indexing and analytical solutions. FTSE calculates thousands of unique indices that measure and benchmark markets and asset classes in more than 80 countries around the world. FTSE indices are used extensively by market participants worldwide for investment analysis, performance measurement, asset allocation and portfolio hedging. Many leading pension funds, asset managers, ETF providers and investment banks work with FTSE to benchmark their investment performance and use FTSE’s indices to create world-class ETFs, index tracking funds, structured products and index derivatives. FTSE also provides many exchanges around the world with their domestic indices. A core set of universal principles guides FTSE’s index design and management: FTSE’s transparent rules-based methodology is overseen by independent committees of leading market participants, focused on applying the highest industry standards in index design and governance. The foundation of FTSE’s global, regional, country and sector indices is the FTSE Global Equity Index Series, which includes the flagship FTSE All-World Index. FTSE is well known for index innovation and customer partnerships as it seeks to continually enhance the breadth, depth and reach of its offering. FTSE is wholly owned by London Stock Exchange Group.