UBS Investment Bank Acquires Minority Interest in GMI

6 November 2008

GovernanceMetrics International (GMI), the corporate governance research and ratings firm, announced today that UBS Investment Bank has purchased a minority stake in the company.

Through the arrangement, UBS analysts will have access to GMI’s proprietary content and database, enabling them to factor governance ratings into their stock research. UBS will also work with GMI to expand the firm’s customer base, as well as work jointly on product development and research ideas.

“UBS is always looking for ways to offer our clients access to the most sophisticated and relevant investment information and analytical tools. Now more than ever before, assessing a company’s relative governance characteristics is critical to investment analysis,” said Mark Steinert, Global Head of Equity Research at UBS. “Our partnership with GMI allows UBS to introduce first-rate governance research and data to clients, will enable our analysts to incorporate this important metric into a comprehensive coverage offering and will enable the creation of governance friendly structured products.”

“GMI was established in 2000 under the premise that companies that emphasize corporate governance and transparency will, over time, generate superior return and economic performance and lower their cost of capital. This is as relevant now as it was back then. We look forward to working with our new partners at UBS to help our clients further integrate governance issues into their investment decision making process,” said Howard Sherman, President and CEO of GMI.

“Given the volatility and recent rapid market developments clients are looking for new ways to understand the companies in which they are invested,” added Julie Hudson, UBS's Global Head of Socially Responsible Investing and Sustainability Research. “We believe standards of analysis and due diligence with respect to governance will become increasingly stringent throughout the investment advisory sector. GMI’s research capabilities address an immediate need in the market, and we are excited to offer their product to our clients.”

The investment by UBS means that that GMI is now backed by a number of the world’s leading financial institutions. Other minority investors in GMI include State Street Global Alliance, a partnership between Boston-based State Street Global Advisors, one of the world’s largest institutional investment managers, and Dutch giant ABP, one of the world’s largest pension funds. Another minority stake is held by Inter-Atlantic Group, a manager of private equity funds focused exclusively on the financial and business services sector.

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