GMI Ratings and FTSE Encouraged by Initial Signs Linking Enhanced Forensic Accounting Measures to Index Performance

  GMI Ratings and FTSE Encouraged by Initial Signs Linking Enhanced Forensic
  Accounting Measures to Index Performance

                   Executives to Speak at Conference Today

Business Wire

NEW YORK & NEWPORT BEACH, Calif. -- September 18, 2013

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.
Berkeleyand 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.

About FTSE

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.

Contact:

GMI Ratings Media
Cheryl Gustitus, +1-212-949-1313, ext. 316
Chief Marketing Officer
cgustitus@gmiratings.com
Mobile: +1-240-507-0823
or
Joyce Brown, +1-207-553-5679
Marketing Communications
jbrown@gmiratings.com
or
FTSE Ratings Media
London Stock Exchange Group
Lucie Holloway, +44 (0)20 7797 1222
Senior Press Officer
lholloway@lseg.com
Mobile: +44 (0)7837-225-859
 
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