Navigating the Industry Classification Benchmark Sector Changes
What is happening?
The Industry Classification Benchmark (“ICB”), a system used to categorise markets into industries and sectors, was originally developed in 2005 by index providers FTSE Russell and Dow Jones. Approximately 100,000 equity securities worldwide are currently classified by the system. In late 2017 FTSE Russell, now sole owners of the ICB, announced that a number of changes would be made to the benchmark categorisation, effective 1st July 2019.
These changes will broadly bring the ICB grouping into line with the Global Industry Classification Standard (“GICS”), jointly developed by MSCI and Standard and Poor’s in 1999.
A comprehensive summary of all the changes can be found on the FTSE Russell website.
What have we done?
Our database has already been adapted to handle the new ICB Sector codes, and on 1st July we will be updating all of our sector analysis results in line with the new classifications.
The new classifications will be available through Galaxia, our Data API, and will appear across our suite of Digital Solutions. For FundsLibrary clients this means that from 1st July, you will be able to explore the new classifications via the sectors widget on your Fund Pages. Users of our X-Ray tool will see the aggregated results across their entire portfolio, and all Digital Factsheets within THE Library will also reflect the changes.
Should you have any queries please contact us on +44 117 980 9994 or by email and we will be happy to help.
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All figures correct as at 31.12.2020.