The Unique ASSET4 Methodology

The Flow of Our System

The diagram below provides an overview of the ASSET4 methodology and data structure. At its foundation is our rigorous data collection process that tracks approximately 250 separate indicators per company. At the top of the structure is the overall rating that we generate for each company within the system.

Between these two levels is an enormous amount of processing and analysis, all of which is accessible and transparent to our users. Nothing is hidden from our users. If they desire, they can view each level of data aggregation within the system or even the actual raw data and its source.

But the level of flexibility does not stop there. Users are also able to create what we call MyRatings and MyScenarios. Both of these features allow the user to define what indicators or categories are most important to them and how they should be weighted within the overall analysis process.

The ASSET4 system has been designed from the beginning to provide the right information and tools necessary to enable investment professionals and corporate executives to incorporate intangibles and extra-financials into their investment and strategic decisions with confidence and assurance.

The ASSET4 Evaluation Process

ASSET4 evaluates a company by means of a very clear and methodical process against each of the indicators that it tracks. The scientifically validated and model-based evaluation ASSET4 provides contains no interpretation of the data, and is a result of a range of multivariate statistical analysis methods comparing companies' financial performance with their performance in the extra-financial areas. The result is a model-based objective rating that enables users to systematically benchmark and access corporate performance, as well as use their expertise to interpret the information provided. In fact, users may change the weightings of the criteria or leave out aspects they feel are not relevant to their specific assessment. Users are thereby empowered to customise the evaluation to reflect their individual values or to focus on themes of particular importance and interest.

Objective, Public Information

ASSET4 bases all its analysis of company performance and potential opportunity/risk areas along with its benchmarking framework on publicly available company information. Publicly available information is extremely important because it provides a level playing field for all companies and allows for an objective assessment and benchmarking of company performance. It is widely expected that future regulatory frameworks (like Sarbanes-Oxley) aim to foster even more corporate transparency. It is also important to note that there are no conflicts of interest within ASSET4 because it is only focused on providing clear and independent information and a framework to understand and analyse it.