GICS is the industry classification system jointly developed by Standard & Poor’s Financial Services LLC and MSCI Inc. in 1999. GICS® was developed in response to the financial community’s need for one complete and consistent set of global sector and industry definitions, and it has become the standard widely recognized by market participants worldwide. It sets a foundation for the creation of replicable and custom-tailored indexes and portfolios, and enables meaningful comparisons of sectors and industries. GICS is a four-tiered, hierarchical classification system, as follows:
The GICS methodology is an industry analytical framework for investment research, portfolio management, asset allocation and index formation. Companies are classified both quantitatively and qualitatively. Each company is assigned to only one GICS classification at the Sub-Industries level according to its principal business activity. S&P Dow Jones Indices and MSCI use revenues as a key factor in determining a firm’s principal business. Earnings and market are also recognized as important and relevant information for classification purposes. |
