The new GICS Communication Services sector being introduced late-September will include members that add considerable buoyancy to the growth rates and valuation ratios of this traditionally defensive, high yield, slow growth industry. As a newly-invented sector, Communication Services has no financial history, and we felt it was important to fill that void.
The GICS changes result in the elimination of five groups from our GS framework, which brings the group universe count down to 115 from 120.
GICS recently announced their first revision since June 30, 2010, which goes into effect on February 28th.
Standard & Poor’s/MSCI did their annual review of the GICs groups and made some changes...in a few cases adopting groups we had already established at The Leuthold Group and had been tracking for several years. This month’s “Of Special Interest” discusses the changes and presents our take on the new groups.
On May 1st, Standard and Poor’s implemented its changes in the Global Industry Classification System (GICS). Overall, we feel the changes are good.
Each year, S&P and MSCI hold an annual review to make revisions that they believe will better enable their GIC System to most accurately reflect the sectors and industries most relevant to the equity investment community. Beginning on May 1st, a number of changes took place as a result of their annual review.