GMI Ratings, the leading provider of research, data and analytics on environmental, social, governance and accounting-related risks, today announced that FactSet, (NYSE: FDS | NASDAQ: FDS), a leading provider of integrated financial information data and analytical applications, will deliver GMI’s governance and accounting risk data to investors through the FactSet workstation.
Increasingly, investment professionals are integrating governance and accounting risk factors into their investment processes and models as more empirical evidence validates the linkage between governance and performance.
The unique GMI data sets now accessible to FactSet subscribers include elements of GMI’s Forensic Alpha Model (FAM™), its Accounting and Governance Risk (AGR®) model and GMI’s ESG research and ratings, including the 150 ESG KeyMetrics® that drive the ratings. FAM is designed to use forensic accounting and governance-related measures of issuer risk to efficiently gain exposures to sustainable drivers of investment return, while AGR is used by investors for risk mitigation and ESG ratings and research are used for portfolio sustainability screening and management.
“With our robust data now available through FactSet, investment managers, pension funds, hedge funds and other institutional investors can integrate GMI’s ESG and Accounting risk data and analytics into their own models and investment process”, said Dan Concannon, President and Chief Executive Officer of GMI. “FactSet clients can also leverage elements of GMI’s Forensic Alpha Model for portfolio construction and optimization and ultimately, performance enhancement.”GMI data will be accessible to FactSet subscribers through the platform’s Alpha Testing, Portfolio Analysis, Universal Screening, Data Downloading, and MS Office integration functions and can be permissioned globally or by geographic region. “FactSet is pleased to add GMI Ratings’ three core models to our content offerings and analytics suite,” said Rick Barrett, FactSet’s Senior Vice President of Quantitative Analytics. “As GMI’s ESG and AGR models have gained traction in the marketplace through the years, we’ve heard from more and more clients looking to combine that content with FactSet’s powerful analytics. The newly-released Forensic Alpha Model will let our clients add unique and uncorrelated factors to their existing alpha models within our screening, backtesting, and optimization tools.”