GlobalIndustryClassificationStandard(GICS)
TableofContents
Introduction(1)
GICSClassificationMethodology(2)
GICSUsage(4)
GICSMaintenance(6)
ChangestotheGICSStructure(7)
GICSDataProducts(8)
GICSGovernance(9)
IndexPolicyRelatedtoGICS(10)
Appendix(11)
S&PContactInformation(18)
Disclaimer(19)
Introduction
In1999,Standard&Poor’sandMSCI/BarrajointlydevelopedtheGlobalIndustryClassificationStandard(GICS)toestablishaglobalstandardforcategorizingcompaniesintosectorsandindustries.GICSwasdevelopedinresponsetotheglobalfinancialcommunity’sneedforonecomplete,consistentsetofglobalsectorandindustrydefinitions,therebyenablingassetowners,assetmanagersandinvestmentresearchspecialiststomakeseamlesscompany,sectorandindustrycomparisonsacrosscountries,regions,andglobally.
Highlights
GICShasbecomeanindustrymodelwidelyrecognizedbymarketparticipantsworldwide.Itsetsafoundationforthecreationofreplicable,custom-tailoredportfoliosandenablesmeaningfulcomparisonsofsectorsandindustriesglobally.
GICSwasdevelopedandismaintainedbytwoleadingglobalindexproviders.Ithasbeenspecificallydesignedtoclassifycompaniesglobally–inbothdevelopedanddevelopingeconomies.
TheGICSmethodologyhasbeencommonlyacceptedasanindustryanalysisframeworkforinvestmentresearch,portfoliomanagementandassetallocation.TheGICSclassificationsystemcurrentlyconsistsof10sectors,24industrygroups,67industriesand147sub-industries.TheGICSsectorsare:
ConsumerDiscretionary
ConsumerStaples
Energy
Financials
HealthCare
Industrials
InformationTechnology
Materials
TelecommunicationServices
Utilities
GICSwasdesignedtoclassifyacompanyaccordingtoitsprincipalbusinessactivity.Tomakethisdetermination,Standard&Poor’sandMSCIuserevenuesasakeymeasureofacompany’sbusinessactivity.Earningsandmarketperception,however,arealsorecognizedasimportantandrelevantinformationforclassificationpurposesandaretakenintoaccountduringthereviewprocess.
GICSClassificationMethodology
AboutGICS
GICSisdesignedtomeettheneedsoftheinvestmentcommunityforaclassificationsystemthatreflectsacompany’sprimarybusinessmodelasdeterminedbyitsfinancialperformance.ManyothersystemsgroupcompaniesintoclassificationsdesignedfortrackingGDPandtheeconomyratherthancompanyperformance.Over34,000active,publiclytradedcompaniesgloballyarecurrentlyclassifiedandmaintainedbyS&PandMSCIaccordingtotheGICSmethodology.
GICSStructure
GICSisafour-tiered,hierarchicalindustryclassificationsystem:
10Sectors
24IndustryGroups
67Industries
147Sub-Industries
GICSclassificationscanbepresentedintextornumericformat.ThefullGICSclassificationforeachcompanyisan8-digitcodewithtextdescription.Thehierarchicaldesignofthe8-digitcodingsystemallowsforeasytransitionbetweenGICStiers.
Examples:
Sector:ConsumerDiscretionary(GICScode:25)
IndustryGroup:ConsumerServices(GICScode:2530)
Industry:Hotels,Restaurants&Leisure(GICScode:253010)
Sub-industry:Casinos&Gaming(GICScode:25301010)
Sector:Financials(GICScode:40)
IndustryGroup:DiversifiedFinancials(GICScode:4020)
Industry:CapitalMarkets(GICScode:402030)
Sub-industry:InvestmentBanking&Brokerage(GICScode:40203020)