MSCI AND S&P DOW JONES INDICES ANNOUNCE REVISIONS TO THE GLOBAL INDUSTRY CLASSIFICATION STANDARD (GICS ) STRUCTURE IN 2014

Size: px

Start display at page:

Download "MSCI AND S&P DOW JONES INDICES ANNOUNCE REVISIONS TO THE GLOBAL INDUSTRY CLASSIFICATION STANDARD (GICS ) STRUCTURE IN 2014"

Gladys McKenzie
6 years ago
Views:

MSCI AND S&P DOW JONES INDICES ANNOUNCE REVISIONS TO THE GLOBAL INDUSTRY CLASSIFICATION STANDARD (GICS ) STRUCTURE IN 2014 New York, November 5, 2013 - MSCI Inc.

1 MSCI AND S&P DOW JONES INDICES ANNOUNCE REVISIONS TO THE GLOBAL INDUSTRY CLASSIFICATION STANDARD (GICS ) STRUCTURE IN 2014 New York, November 5, MSCI Inc., a leading provider of investment decision support tools worldwide, and S&P Dow Jones Indices, a leading provider of financial market indices, announced today the results of their annual review of the Global Industry Classification Standard (GICS ). The review is intended to ensure that the GICS structure continues to appropriately represent the global equity markets and, thereby, enables asset owners, asset managers and investment research specialists to make consistent global comparisons by industry. The GICS revision is the result of a consultation with members of the global investment community. Changes will be made at the Industry and Sub-Industry levels, and are detailed below. The changes to the GICS structure will be implemented after the close of business (ET) on Friday, February 28, The list of securities affected by these changes will be made available to GICS Direct clients no later than January 6, The changes to the GICS Structure in 2014 are below: I. Independent Power Producers & Energy Traders Industry The Independent Power Producers & Energy Traders Industry is being renamed to Independent Power & Renewable Electricity Producers and a new Sub-Industry is being created for Renewable Electricity. Sector Industry Group Industry Sub-Industry 55 - Utilities Utilities Independent Power and Renewable Electricity Producers (Name change) The new or changed definitions for the Sub-Industries are as follows: Independent Power Producers & Energy Traders: Independent Power Producers & Energy Traders (Definition change) Renewable Electricity (New) Companies that operate as Independent Power Producers (IPPs), Gas & Power Marketing & Trading Specialists and/or Integrated Energy Merchants. Excludes producers of electricity using renewable sources, such as solar power, hydropower, and wind power. Also excludes electric transmission companies and utility distribution companies classified in the Electric Utilities Sub-Industry. Renewable Electricity: Companies that engage in generation and distribution of electricity using renewable sources, including, but not limited to, companies that produce electricity using biomass, geothermal energy, solar energy, hydropower, and wind power. Excludes companies manufacturing capital equipment used to generate electricity using renewable sources, such as manufacturers of solar power systems and installers of Page 1 of 10

2 photovoltaic cells and companies involved in the provision of technology, components, and services mainly to this market. II. Metals & Mining Industry A new Sub-Industry is being created for Silver in the Metals & Mining Industry. There are also definition changes to the Diversified Metals & Mining and Steel Sub-Industries as below. Sector Industry Group Industry Sub-Industry 15 - Materials Materials Metals & Mining Aluminum Diversified Metals & Mining (Definition change) Gold Precious Metals & Minerals Silver (New) Steel (Definition change) The new or changed definitions for the Sub-Industries are as follows: Diversified Metals & Mining: Companies engaged in the diversified production or extraction of metals and minerals not classified elsewhere. Including, but not limited to, nonferrous metal mining (except bauxite) salt and borate mining, phosphate rock mining, and diversified mining operations. Excludes iron ore mining, classified in the Steel Sub-Industry, bauxite mining, classified in the Aluminum Sub-Industry, and coal mining, classified in either the Steel or Coal & Consumable Fuels Sub-Industries. Silver: Companies primarily mining silver. Excludes companies classified in the Gold or Precious Metals and Minerals Sub-Industries. Steel: Producers of iron and steel and related products, including metallurgical (coking) coal mining used for steel production. Page 2 of 10

3 III. Machinery Industry The Construction & Farm Machinery & Heavy Trucks Sub-Industry is being split into two Sub-Industries: Construction Machinery & Heavy Trucks and Agricultural & Farm Machinery. Sector Industry Group Industry Sub-Industry 20 - Industrials Capital Goods Machinery The new or changed definitions for the Sub-Industries are as follows: Construction Machinery & Heavy Trucks: Construction Machinery & Heavy Trucks (Name & definition change) Agricultural & Farm Machinery (New) Industrial Machinery Manufacturers of heavy duty trucks, rolling machinery, earth-moving and construction equipment, and manufacturers of related parts. Includes non-military shipbuilding. Agricultural & Farm Machinery: Companies manufacturing agricultural machinery, farm machinery, and their related parts. Includes machinery used for the production of crops and agricultural livestock, agricultural tractors, planting and fertilizing machinery, fertilizer and chemical application equipment, and grain dryers and blowers. IV. REITs Industry Two new REITs Sub-Industries are being created. Hotel & Resort REITs and Health Care REITs are being carved out from Specialized REITs as below. Page 3 of 10

4 Sector Industry Group Industry Sub-Industry Diversified REITs Industrial REITs Mortgage REITs 40 - Financials Real Estate Real Estate Investment Trusts (REITs) Hotel & Resort REITs (New) Office REITs Health Care REITs (New) Residential REITs Retail REITs Specialized REITs (Definition change) The new or changed definitions for the Sub-Industries are as follows: Hotel & Resort REITs: Companies or Trusts engaged in the acquisition, development, ownership, leasing, management and operation of hotel and resort properties. Health Care REITs: Companies or Trusts engaged in the acquisition, development, ownership, leasing, management and operation of properties serving the health care industry, including hospitals, nursing homes, and assisted living properties. Specialized REITs: Companies or Trusts engaged in the acquisition, development, ownership, leasing, management and operation of properties not classified elsewhere. Includes trusts that operate and invest in storage properties. It also includes REITs that do not generate a majority of their revenues and income from real estate rental and leasing operations. V. Technology Hardware and Equipment Industry Group The Computer Hardware and Computer Storage & Peripherals Sub-Industries are being merged to form a new Technology Hardware, Storage and Peripherals Sub-Industry. This new Sub-Industry includes cellular phones which are currently classified as Communications Equipment. The definition of Page 4 of 10

5 Communications Equipment is being modified accordingly. In addition, the Office Electronics Industry and Sub-Industry are being discontinued. Sector Industry Group Industry Sub-Industry 45 - Information Technology Technology Hardware & Equipment Communications Equipment Technology Hardware, Storage & Peripherals (Name Change) Electronic Equipment, Instruments & Components Communications Equipment (Definition change) Computer Hardware (Discontinued) Computer Storage & Peripherals (Discontinued) Technology Hardware, Storage & Peripherals (New) Electronic Equipment & Instruments Electronic Components Electronic Manufacturing Services Technology Distributors Office Electronics (Discontinued) Office Electronics (Discontinued) The new or changed definitions for the Sub-Industries are as follows: Communications Equipment: Manufacturers of communication equipment and products, including LANs, WANs, routers, telephones, switchboards and exchanges. Excludes cellular phone manufacturers classified in the Technology Hardware, Storage & Peripherals Sub-Industry. Technology Hardware, Storage & Peripherals: Manufacturers of cellular phones, personal computers, servers, electronic computer components and peripherals. Includes data storage components, motherboards, audio and video cards, monitors, keyboards, printers, and other peripherals. Excludes semiconductors classified in the Semico nductors Sub-Industry. Page 5 of 10

6 VI. Photographic Products Sub-Industry The Photographic Products Sub-Industry is being discontinued and the Leisure Equipment & Products Industry is being renamed to Leisure Products as below. Sector Industry Group Industry Sub-Industry 25 - Consumer Discretionary Consumer Durables & Apparel Leisure Products (Name Change) Leisure Products Photographic Products (Discontinued) VII. Changes to the definitions of Sub-Industries Sub-Industry definitions within the Banks Industry Group, Consumer Electronics and Internet Software and Services Sub-Industries are being updated. The Commercial Banks Industry is being renamed to Banks. Diversified Banks: Large, geographically diverse banks with a national footprint whose revenues are derived primarily from conventional banking operations, have significant business activity in retail banking and small and medium corporate lending, and provide a diverse range of financial services. Excludes banks classified in the Regional Banks and Thrifts & Mortgage Finance Sub-Industries. Also excludes investment banks classified in the Investment Banking & Brokerage Sub-Industry. Regional Banks: Commercial banks whose businesses are derived primarily from conventional banking operations and have significant business activity in retail banking and small and medium corporate lending. Regional banks tend to operate in limited geographic regions. Excludes companies classified in the Diversified Banks and Thrifts & Mortgage Banks sub-industries. Also excludes investment banks classified in the Investment Banking & Brokerage Sub-Industry. Thrifts & Mortgage Finance: Financial institutions providing mortgage and mortgage related services. These include financial institutions, whose assets are primarily mortgage related, savings & loans, mortgage lending institutions, building societies and companies providing insurance to mortgage banks. Page 6 of 10

7 Other Diversified Financial Services: Providers of a diverse range of financial services and/or with some interest in a wide range of financial services including banking, insurance and capital markets, but with no dominant business line. Excludes companies classified in the Regional Banks and Diversified Banks Sub-Industries. Consumer Electronics: Manufacturers of consumer electronics products including TVs, home audio equipment, game consoles, digital cameras and related products. Excludes personal home computer manufacturers classified in the Technology Hardware, Storage & Peripherals Sub-Industry, and electric household appliances classified in the Household Appliances Sub-Industry. Internet Software and Services Sub-Industry: Companies developing and marketing internet software and/or providing internet services including online databases and interactive services, as well as companies deriving a majority of their revenues from online advertising. Excludes companies classified in the Internet Retail Sub-Industry. VIII. Health Care Sector The Biotechnology Sub-Industry definition is being changed to exclude companies manufacturing products without a health care application, and to better define what should fall under this Sub- Industry. The new definition is: Companies primarily engaged in the research, development, manufacturing and/or marketing of products based on genetic analysis and genetic engineering. Includes companies specializing in proteinbased therapeutics to treat human diseases. Excludes companies manufacturing products using biotechnology but without a health care application. The new GICS structure will consist of 10 Sectors, 24 Industry Groups, 67 Industries and 156 Sub- Industries. Page 7 of 10

8 Summary of 2013 GICS structure changes: SECTOR LEVEL No. Type of change Code Current Sector Name New Sector Name No change INDUSTRY GROUP L EVEL No. Type of change Code Current Industry Group Name New Industry Group Name No change INDUSTRY L EVEL No. Type of change Code Current Industry Name New Industry Name 1 Name change Leisure Equipment & Products Leisure Products 2 Name change Commercial Banks Banks 3 Name change Computers & Peripherals Technology Hardware, Storage & Peripherals 4 Discontinued Office Electronics 5 Name change SUB-INDUSTRY LEVEL Independent Power Producers & Energy Traders Independent Power and Renewable Electricity Producers No. Type of change Code Current Sub-Industry Name New Sub-Industry Name 1 Definition change Diversified Metals & Mining 2 New Silver 3 Definition change Steel 4 Name change & Construction & Farm Machinery & Definition change Heavy Trucks Construction Machinery & Heavy Trucks 5 New Agricultural & Farm Machinery 6 Definition change Consumer Electronics 7 Discontinued Photographic Products 8 Definition change Biotechnology 9 Definition change Diversified Banks 10 Definition change Regional Banks 11 Definition change Thrifts & Mortgage Finance 12 Definition change Other Diversified Financial Services 13 New Hotel & Resort REITs 14 New Health Care REITs 15 Definition change Specialized REITs 16 Definition change Internet Software & Services 17 Definition change Communications Equipment 18 Discontinued Computer Hardware 19 Discontinued Computer Storage & Peripherals 20 New Technology Hardware, Storage & Peripherals 21 Discontinued Office Electronics 22 Definition change Independent Power Producers & Energy Traders 23 New Renewable Electricity The updated GICS structure and newly modified definitions are available on MSCI s Web site at and S&P Dow Jones Indices Web site at Page 8 of 10

9 About MSCI MSCI Inc. is a leading provider of investment decision support tools to investors globally, including asset managers, banks, hedge funds and pension funds. MSCI products and services include indices, portfolio risk and performance analytics, and governance tools. The company s flagship product offerings are: the MSCI indices with approxima tely USD 7.5 trillion estima ted to be benchma rke d to them on a worldwide basis1; Barra multi-asset class factor models, portfolio risk and performance analytics; RiskMetrics multi-asset class market and credit risk analytics; IPD real estate information, indices a nd analytics; MSCI ESG (environmental, social and governance) Re search screening, analysis and ratings; ISS corporate governance research, data and outsourced pro xy voting and reporting services; and FEA valuation models and risk management softwa re for the energy and commodities markets. MSCI is headquartered in New York, with research and com mercial offices around the world. 1As of March 31, 2013, as reported on July 31, 2013 by evestment, Lipper and Bloomberg For further information on MSCI, please visit Media Enquiries: Kristin Meza, MSCI, New York Kristen.meza@msci.com Jo Morgan, MSCI, London Jo.morgan@msci.com Sally Todd Christia n Pickel, MHP Communications, London MSCITeam@mhpc.com MSCI Global Client Service: Americas Client Service (toll free)/ EMEA Client Service Asia Pacific Client Service About S&P Dow Jones Indices S&P Dow Jones Indices LLC, a part of McGraw Hill Financial, is the world s largest, globa l resource for index-based concepts, data and research. Home to iconic financial market indicators, such as the S&P 500 and the Dow Jones Industrial Average, S&P Dow Jones Indices LLC has over 115 years of experience constructing innovative and transpa rent solutions that fulfill the needs of investors. More assets are invested in products based upon our indices than any other provider in the world. With over 830,000 indices covering a wide ra nge of asset classes across the globe, S&P Dow Jones Indices LLC defines the way investors measure and trade the ma rkets. To learn more about our company, please visit For more information: David Blitzer, S&P Dow Jones Indices, New York David.blitzer@spdji.com David Guarino, Communications, S&P Dow Jones Indices, New York Dave.guarino@spdji.com S&P Dow Jones Indices Client Services: Beijing Dubai Hong Kong London New York or Sydney Page 9 of 10

10 Tokyo NOTICE AND DISCLAIMER This document has been prepa red by MSCI and S&P Dow Jones Indices LLC and its affiliates ( S&P Dow Jones Indices ) solely for informational purposes. All of the information contained herein, including without limita tion all text, data, graphs, charts (collectively, the Information ) is the property of MSCI, S&P Dow Jones Indices, or their respec tive affilia tes. The Informa tion may not be reproduced or redisseminated in whole or in part without prior written permission from MSCI and S&P Dow Jones Indices. The Information may not be used to create derivative works or to verify or correct other da ta or information. For example (but without limitation), the Informa tion may not be used to create indices, databases, risk models, analytics, software, or in connection with the issuing, offering, sponsoring, managing or ma rketing of any securities, portfolios, financial products or other investment vehicles utilizing or based on, linked to, tracking or otherwise derived from the Information. The user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. NEITHER MSCI, S&P DOW JONES INDICES, S&P, NOR ANY OF THEIR RESPECTIVE AFFILIATES MAKES ANY EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS WITH RESPECT TO THE INFORMATION (OR THE RESULTS TO BE OBTAINED BY THE USE THEREOF). TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, MSCI, S&P DOW JONES INDICES, S&P AND THEIR RESPECTIVE AFFILIATES EXPRESSLY DISCLAIM ALL IMPLIED WARRANTIES (INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF ORIGINALITY, ACCURACY, TIMELINESS, NON-INFRINGEMENT, COMPLETENESS, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE) WITH RESPECT TO ANY OF THE INFORMATION. Without limiting any of the foregoing and to the ma ximum extent permitted by applicable law, in no event shall MSCI, S&P Dow Jones Indices, S&P or any of their respective affiliates have any liability regarding any of the Information for any direct, indirect, special, punitive, consequential (including lost profits) or any other damages even if notified of the possibility of such damages. Information containing any historical informa tion, data or analysis should not be taken as an indica tion or guarantee of any future performance, analysis, forecast or prediction. Past performance does not guarantee future results. None of the Information constitutes an offer to sell (or a solicitation of an offer to buy), any security, financial product or other investment vehicle. The Information does not, and is not intended to, recommend, endorse, approve or otherwise expresses any opinion regarding any issuer, security, financial product or trading strategy and none of the Information is intended to constitute investment advice or a recommenda tion to make (or refrain from making) any kind of investment decision and may not be relied on as such. The Globa l Industry Classification Standa rd (GICS) was developed by and is the exclusive property of MSCI and S&P. Global Industry Classification Standard (GICS) is a service mark of MSCI and S&P. Page 10 of 10

S&P DOW JONES INDICES AND MSCI ANNOUNCE REVISIONS TO THE GLOBAL INDUSTRY CLASSIFICATION STANDARD (GICS ) STRUCTURE IN 2016

S&P DOW JONES INDICES AND MSCI ANNOUNCE REVISIONS TO THE GLOBAL INDUSTRY CLASSIFICATION STANDARD (GICS ) STRUCTURE IN 2016 New York, November 10, 2014 - S&P Dow Jones Indices, a leading provider of financial