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Risk Management

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Leslie Kramer
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UBS Investment Bank Takes Minority Stake in Governance Metrics International

UBS invests in research advisory firm.

UBS Investment Bank has purchased a minority stake in Governance Metrics International (GMI), a research advisory firm that specializes in assessing corporate governance across more than 4,200 companies globally. 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. GMI's rating system incorporates hundreds of data points across six broad categories of analysis: board accountability, financial disclosure and internal controls, executive remuneration, shareholder rights, ownership base, takeover provisions, plus corporate behavior and social responsibility.

"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, in a press release. "Our partnership with GMI allows UBS to introduce first-rate governance research and data to clients. It will enable our analysts to incorporate this important metric into a comprehensive coverage offering and will enable the creation of governance friendly structured products," he said.

Howard Sherman, CEO of GMI, said in the release, "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. 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."

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