GMI's most recent rating release includes a number of new metrics concerning enterprise risk management and risk oversight at the board level. These had been under consideration for a while but were made paramount by ongoing turmoil in the financial and credit markets. The new metrics are now factored into the GMI rating model. In its announcement, GMI noted that standardized disclosure concerning risk oversight is lacking at most companies.

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GMI is pleased to note it was the highest ranked independent provider of corporate governance research in the Thomson Reuters Extel Survey 2009 and was the only independent corporate governance research firm included in the top 10. The 32 corporate governance research providers included in the 2009 Survey included banks, brokers, independent research houses and proxy advisory firms.

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Last year, two professors began to look at the relationship between GMI ratings and company performance over a full five-year period from Q2 2003 to Q2 2008. This was the most extensive analysis of GMI ratings conducted to date. The results, which are now available, are striking. The empirical findings suggest that "buying high GMI rated stocks produces a winning strategy. GMI ratings appear to contain a significant unique element related to future returns that was not already available to investors."

We find these results quite assuring and are happy to share the results of both studies, plus earlier research on this topic. Please contact GMI to request your complimentary copy of GMI Governance and Performance Studies.