First-ever indexes to track equity performance based on good governance at the country level
FOR IMMEDIATE RELEASE
MINNEAPOLIS, MN, September 6, 2017 – Magni Global Asset Management today announced the launch of three indexes that track equity performance at the country level of the three most used international indexes, Emerging Markets, EAFE, ACW ex US.
Widely accepted economic studies have shown that strong governance is a good indicator of long-term financial outperformance. “Good governance equals honesty and transparency. The more honest and transparent a country is with its citizens, businesses, and investors, the more wealth is created in the country,” says Kurt Lieberman, Magni’s CEO.
Most active and passive approaches to international portfolio construction ignore the fact that every country has unique legal, regulatory, and economic infrastructures. This is the information that is often overlooked by analysts because it is difficult to find and quantify. “Just because laws and regulations are in place does not mean that they are enforced. A key factor in determining good governance is behavior versus intent, and this is where Magni is most differentiated from other similar types of research organizations,” he explained. The resulting differences in individual country economies have implications for equity valuations. “At Magni, we have a repeatable process for turning this research into investment information by scoring all investible countries in the world based on their demonstrated record of good governance,” Lieberman added.
Long-term research track record
Magni has a research database that contains 12 standards and 280 factors that has been updated monthly for more than 16 years. Research on the Qualitative Sovereign Factors is accumulated to determine a score for each Economic Standard and then combined into an overall Magni Country Score. The higher the country score, the greater the adherence to the Sustainable Wealth Creation principles, the greater the weighting in the index. “With Magni Country Governance Indexes, investors now have easy access to this research,” said Lieberman. The Indexes are based on the Magni Country Score for adherence to good governance behaviors.
About Magni Global Asset Management
Magni Global Asset Management LLC is the leader in country-level research on corporate governance. Magni developed the Sustainable Wealth Creation principles, based on widely accepted economic concepts, by researching the accounting, legal, regulatory, adjudicative, and economic infrastructures of countries. Its extensive database goes back 16 years and contains analysis on countries across 280 qualitative factors. Magni scores and ranks investible countries on their ability to provide an environment conducive to effective corporate governance. The Minnesota-based research and asset management firm believes Countries MatterTM when investing internationally.
For more information, please visit www.magniglobal.com on Twitter @MagniGlobal.
Brad Hanson, Managing Director
Laura Gideon, Managing Director
Magni Global Asset Management
# # #