Effective and Efficient Portfolio Analysis and Reporting

The GICS history databases are comprehensive and timely databases of companies classified in accordance with the GICS methodology. Sell-side research and reporting can be organized around industry data without the geographic limitations of other classification systems. Both quantitative and qualitative measures are used to ensure companies are appropriately classified, making the GICS databases additional tools that can validate your research and portfolio construction.

Key Advantages

• Address the needs of the changing global economy using current and historical company-level classification codes based upon business activity
• Explore a growing database over 68,000 active and inactive company classifications
• Take advantage of common security identifiers available to ease reconciling GICS code with existing databases and processes
• Access one complete, consistent set of global sector and industry definitions in conjunction with the Compustat global database

Use a Market-oriented Approach to Classifying Companies Into Sub-Industries

 
Companies continue to diversify the range of products developed and offered. GICS takes a market-oriented approach for classifying companies within sub-industries to better reflect the evolution of the marketplace. Many companies offer both goods and services; therefore, a company is classified in the sub-industry whose definition most closely describes the business activities that generate the majority of the company’s revenues. A diverse company that may have multiple business activities will have its classification determined by factoring in each of the business interests and how those interests contribute to the overall corporation.

Key Advantages

• Define peer groups tightly and accurately
• Limit risk by using standardized industry definitions, which ensure that stock classifications are grouping similar companies accurately
• Increase portfolio, index and derivative product construction customization
• Efficiently track historical changes in company classifications as demonstrated in the example below:

Other GICS Products That May Interest You

GICS Direct