Global Industry Classification System (GICS) (Slides 39 / 41 / 42) GICS is a four-tiered, hierarchical industry classification system. It consists of 11 sectors, 24 industry groups, 68 industries and 157 sub-industries. The GICS methodology is widely accepted as an industry analytical framework for investment research, portfolio management and asset allocation. Companies are classified quantitatively and qualitatively. Each company is assigned a single GICS classification at the sub-industry level according to its principal business activity. MSCI and S&P Global use revenues as a key factor in determining a firm’s principal business activity. Earnings and market, however, are also recognized as important and relevant information for classification purposes. Global industry coverage is comprehensive and precise. The classification system is comprised of over 50,000 trading securities across 125 countries, covering approximately 95% of the world’s equity market capitalization. Company classifications are regularly reviewed and maintained. Specialized teams from two major index providers — MSCI and S&P Global — have defined review procedures, refined over nearly 15 years. Each sector includes the following industries: • Energy= Energy Equipment & Services, Oil, Gas & Consumables Fuels • Materials = Chemicals, Construction Materials, Containers & Packaging, Metals & Mining, Paper & Forest Products • Industrials = Aerospace & Defense, Building Products, Construction & Engineering, Electrical Equipment, Industrial Conglomerates, Machinery, Trading Companies & Distributors, Commercial Services & Suppliers, Professional Services, Air Freight & Logistics, Airlines, Marine, Road & rail, Transportation Infrastructure • Consumer Discretionary = Auto Components, Automobiles, Household Durables, Leisure Products, Textiles, Apparel & Luxury Goods, Hotels, Restaurants & Leisure, Diversified Consumer Services, Media, Distributors, Internet & Direct Marketing Retail, Multiline Retail, Specialty Retail • Consumer Staples =Food & Staples Retailing, Beverages, Food Products, Tobacco, Household Products, Personal Products • Healthcare = Healthcare Equipment & Supplies, Healthcare Providers & Services, Healthcare Technology, Biotechnology, Pharmaceuticals, Life Sciences Tools & Services • Financials = Commercial Banks, Thrifts & Mortgage Finance, Diversified Financial Services, Consumer Finance, Capital Markets, Mortgage Real Estate Investment Trusts (REITs), Insurance • Information Technology = Internet Software & Services, IT Services, Software, Communications Equipment, Computers & Peripherals, Electronic Equipment & Instruments, Semiconductors & Semiconductors Equipment • Telecommunication Services = Diversified Telecommunication Services, Wireless Telecommunication Services • Utilities = Electric Utilities, Gas Utilities, Multi-Utilities, Water Utilities, Independent Power & Renewable Electricity Producers • Real Estate = Equity Real Estate Investment Trusts (REITs), Real Estate Management & Development Source: MSCI, S&P 500 293