MSCI, INC. According to David Blitzer, Managing Director and Chairmanof the Index Committee at S&P Dow Jones Indices, "When GICS was introduced in 1999, we committedto keeping the structure up to date as the global economy evolves. The creationof an eleventh sector recognizesthe growing importance of real estate in the world's equity markets. The decision to add a real estate sector was based on extensive comments from investors and analysts as well as in-depth analysis and discussions between S&P Dow Jones Indices and MSCI."
Remy Briand, Managing Director and Global Head of Researchat MSCI, said, "This is the first significant structural change to GICSsectors since its inception and reflects the position of real estate as a distinct asset class and a foundational building block of a modern portfolio, rather thanan alternative. GICSwas developed as a means of standardization that would keep up with the evolving investment landscape."
The changes to the GICS structure will be implemented after the close of business (ET) on Wednesday, August 31, 2016. The list of companies affected by these changes will be made available to clients no later than July 1, 2016, with an updated list released in August.
Changes to the GICS structure in 2016 are summarized below. Real Estate Sector
Real Estate is being moved out from the Financials sector and is being promoted to a standalone sector under the code 60. The Real Estate Investment Trusts Industry is being renamed Equity Real Estate Investment Trusts (REITs) and excludes Mortgage REITs. Mortgage REITs remain in the Financials sector under a newly created Industry and Sub-industry called Mortgage REITs.
Copper Sub-Industry
A Copper sub-industry is being created in the Metals & Mining industry, broken out from the Diversified Metals & Minerals Sub-industry.
Internet Retail and Catalog Retail Sub-Industries
The Catalog Retail Sub-industry is being discontinued. The companies are being combined into the Internet Retail Sub-industry, which is being renamed to Internet & Direct Marketing Retail. The Sub- industry will include companies providing retail services mainly on the internet, through mail order, and TV home shopping retailers. The Industry name is also being updated to Internet & Direct Marketing Retail.
Financial Exchanges & Data Sub-Industry
A new Sub-industry for Financial Exchanges & Data is being carved out from the Specialized Finance Sub- industry. The new Sub-industry is being moved under the Capital Markets Industry in the Financials Sector. The new Sub-industry includes financial exchanges and providers of financial support data and tools, including ratingsagencies. McGraw Hill Financial and MSCI (among other companies) are expected to be included in the new Sub-industry as a result of this change.
The new GICS structure will consist of 11 sectors, 24 industry groups, 68 industries and 157 sub- industries.
For more information regarding the GICS structure, please visit MSCI's Web site at ww.msci.com and S&P Dow Jones Indices' Web site at www.spdji.com. GICS Direct is a jointly managed product sold and maintained by MSCI and S&P Global Market Intelligence. For more information on GICS Direct, please visit MSCI's Web site or the S&P Global Market Intelligence Web site at www.spcapitaliq.com.
--Ends-
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David Blitzer, S&P Dow Jones Indices, New York +1.212.438.3907 Da vid.blitze r@s pdji.com
David Guarino, Communications, S&P Dow Jones Indices, New York +1.212.438.1471 Da ve .gua rino@s pdji.com
Inde x_s e rvice s @s pdji.com
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MSCI Inc. issued this content on 08 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 08 March 2016 22:20:28 UTC
Original Document: https://www.msci.com/documents/10199/37f69ddd-2fa0-4b95-9970-5e929a97f7b8
