GovernanceMetrics International
October 17, 2005 |
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Dear Colleague,
I wanted to inform you of a number of changes that we will be instituting at GMI in the coming months.
Next year, we will be issuing ratings on a quarterly basis instead of the semi-annual basis that has been our practice since launching GMI in 2002. Our subscribers have told us they would value more frequent ratings but not so frequent as to be a burden on them and have indicated a quarterly benchmark would be the most suitable. This is expected to begin in the first quarter of next year.
In another change planned for 2006, we will be amending our written reports on a daily basis as events warrant. Currently, daily news updates concerning governance developments at rated companies are posted on our subscriber site as they occur. Next year we will incorporate the more important updates in the reports themselves so they become more dynamic and timely.
As we have in the past, GMI will continue to add or drop red flags and / or re-rate companies on an as needed basis, when events warrant, in between our scheduled benchmarks. These can include both positive and negative developments. GMI ratings for Sotheby’s Holdings, for example, improved significantly in September when the company eliminated its dual class voting structure and no longer had a controlling shareholder. Our customers will also continue to be notified about the most significant company developments via e-Alerts, whether they subscribe to GMI directly or over a third-party platform.
As you may be aware, corporate governance research and ratings are now becoming an accepted part of the investment research process. GMI ratings and research reports are now available over FactSet and Bloomberg, for example. Our subscriber base continues its healthy growth both in numbers as well as variety. Our institutional investor clients includes firms throughout North America, Europe and the Asia-Pacific region and we also number among our subscribers regulators, insurance underwriters, bank credit departments, advisory firms and corporations themselves.
Please don’t hesitate to let me know if you would like any more information on the changes described above or other aspects of research and rating process. As always, we very much appreciate your continued support.
Gavin Anderson
President and CEO
GovernanceMetrics International
521 Fifth Avenue, 8th Floor
New York, NY 10175