the global industry classification standard (gics) july 22, 2002 standard & poor’s the global...

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July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S. Sector Indices G The Global Industry Classification Standard (GICS) SM is the exclusive industry classification structure used for Standard & Poor's U.S. industry index calculations. G On December 31, 2001, Standard & Poor's discontinued the use of the its old industry classification methodology for the purpose of U.S. industry index calculations. G While the old classification system and GICS sector indices have distinct differences, they also have some significant common characteristics. G We present the structure of the GICS system and show similar statistical characteristics of the old sector indices and GICS sector indices. G Market participants who use Standard & Poor's U.S. GICS indices for historical returns may choose to use this analysis to create a continuous time series of index returns, with history that extends prior to the official GICS index history. G We show the correlation of historical returns between industry index returns of the two classification systems, and overlap of market capitalization and number of companies at the date when the old industry indices were discontinued. G The analysis presented here is illustrative and should not be construed as Standard & Poor's recommendation for mapping of the two different industries return series. Users should exercise judgment depending upon their situational requirements. Standard & Poor's Quantitative Services Maureen Maitland (212) 438 1178 maureen_maitland@standardan dpoors.com David M. Blitzer (212) 438 3907 david_blitzer@standardandpoor s.com Index Information Index Services (212) 438 2046 index_services@standardandpo ors.com

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Page 1: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

July 22, 2002

Standard & Poor’s

The Global Industry Classification Standard (GICS)SM An Overview for Standard & Poor’s U.S. Sector Indices

�� The Global Industry Classification Standard (GICS)SM is the

exclusive industry classification structure used for Standard & Poor's U.S. industry index calculations.

�� On December 31, 2001, Standard & Poor's discontinued the use of the its old industry classification methodology for the purpose of U.S. industry index calculations.

�� While the old classification system and GICS sector indices have distinct differences, they also have some significant common characteristics.

�� We present the structure of the GICS system and show similar statistical characteristics of the old sector indices and GICS sector indices.

�� Market participants who use Standard & Poor's U.S. GICS indices for historical returns may choose to use this analysis to create a continuous time series of index returns, with history that extends prior to the official GICS index history.

�� We show the correlation of historical returns between industry index returns of the two classification systems, and overlap of market capitalization and number of companies at the date when the old industry indices were discontinued.

�� The analysis presented here is illustrative and should not be construed as Standard & Poor's recommendation for mapping of the two different industries return series. Users should exercise judgment depending upon their situational requirements.

Standard & Poor's Quantitative Services Maureen Maitland (212) 438 1178 [email protected] David M. Blitzer (212) 438 3907 [email protected] Index Information Index Services (212) 438 2046 [email protected]

Page 2: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

A GICS Overview for Standard & Poor's U.S. Indices

Standard & Poor’s Page 2

Introduction On January 2nd, 2001, Standard & Poor’s officially released GICS

(Global Industry Classification Standard) sector, industry group, industry, and sub-industry level price indices for all Standard & Poor’s U.S. indices – the S&P 500, the S&P MidCap 400, the S&P SmallCap 600 and the S&P SuperComposite 1500. Total return index values were also released for the GICS-level S&P 500, S&P MidCap 400, and S&P SmallCap 600 sub-indices.

All sector and industry indices under Standard & Poor's old industry classification system were discontinued effective December 31st, 2001. At that time, GICS became the only industry classification system managed and maintained at Standard & Poor's for U.S. index calculation purposes.

What Is GICS? GICS is an industry classification system, developed by Standard &

Poor's in collaboration with Morgan Stanley Capital International (MSCI). GICS is currently comprised of:

�� 10 Sectors

�� 23 Industry Groups

�� 59 Industries

�� 122 Sub-Industries

A company is assigned to a single GICS sub-industry according to the definition of its principal business activity as determined by Standard & Poor's and MSCI. Revenues are a significant factor in defining principal business activity; however, earnings analysis and market perception are also important criteria for classification.

GICS was developed in response to the financial community’s need for one complete, consistent set of global sector and industry definitions. The GICS standard can be applied to companies globally, in both developed and developing markets, and currently comprises a universe of over 25,000 companies worldwide. See Appendix D for a table detailing the current GICS structure.

GICS Classification Methodology and Maintenance A company is assigned a classification at each of the four levels of

GICS; however, a company may only belong to one group at any level. The classification is generally determined by the business activity that generates a majority of the company’s revenues and/or earnings. For those companies that are engaged in more than one substantially different business activity the

Page 3: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

A GICS Overview for Standard & Poor's U.S. Indices

Standard & Poor’s Page 3

company is classified where the majority of revenues and profits are derived or, if no majority, the sub-industry that best reflects the company’s principal business. Companies whose business activities are dispersed across three or more sectors will be classified in Industrial Conglomerates or Multi-Sector Holdings. Standard & Poor’s and MSCI must agree on the current company classification for it to be labeled as ‘officially’ classified under the GICS structure.

A company’s industry classification is reviewed upon significant corporate events or when new information is made publicly available. Standard & Poor’s and MSCI meet annually to review the overall structure of the GICS system. This will keep the structure up to date with industry trends.

U.S. Sector Indices

The GICS Structure Vs. S&P’s Old Industry Classification System For Standard & Poor's U.S. sub-indices, all GICS sector, industry group,

industry, and sub-industry indices have been calculated with a common base of 100 at a start date of December 31st, 1994. In those cases when the first date of the index is subsequent to this date the index assumes a value of 100 on its start date.

Standard & Poor’s old classification methodology had two levels of detail -- 11 economic sectors and 115 industry groups. As stated above, the GICS structure currently has four levels of detail -- 10 sectors, 23 industry groups, 59 industries, and 122 sub-industries.

At the sector level, transportation has been eliminated as an individual GICS sector, but is represented by a GICS industry group. In the last decade alone, the transportation sector had shrunken from 2% to ½% of the S&P 500. Under GICS, transportation related industries are included in the GICS Industrials sector. The GICS Industrials sector -- comprised largely of the old capital goods and transportation sectors -- should not be confused with the S&P Industrials Composite Index (the S&P 500 excluding transportation, financials, and utilities). The GICS Industrials sector is one of the 10 economic sectors that are part of this new standard. Standard & Poor's continues to calculate values for the S&P Industrials Composite Index; however, this is a stand-alone index and not a part of the GICS structure. For more detail on specific differences between S&P GICS indices and S&P old industry indices refer to Appendix E.

Extension Of U.S. GICS Index History In the summer of 2001, Standard & Poor's conducted an analysis of

the S&P 500 industry index constituents and price returns history for the time period covering December 1994 through September 2000. At that time,

Page 4: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

A GICS Overview for Standard & Poor's U.S. Indices

Standard & Poor’s Page 4

Standard & Poor's concluded that index histories for 58 of the, then, 123 GICS sub-industries and the ten GICS economic sectors had high correlation and market capitalization overlap with the corresponding industry or sector under the old industry classification system.

Standard & Poor's clients found this information useful, since S&P GICS index history often does not contain as much history as some of the corresponding old industry indices.

Standard & Poor's has extended this analysis to cover the additional history it has since generated for the S&P 500 GICS indices – now extending back to September 1989 – and to include the S&P MidCap 400 and the S&P SmallCap 600 GICS sub-indices for the time periods they exist.

Aligning of Old S&P Sector Returns with GICS Sector Returns Merging two distinct industry return series can depend on two

factors. First, correlations provide a quantitative judgement on whether the two return series are distinct or not. Second, the overlap of the constituents of the two different industry indices can be used to provide subjective judgement. These two variables must be used in conjunction.

Correlations Appendix A1 shows the correlation of price returns of old sector

indices, old composite indices and old industry indices with related GICS indices for the S&P 500. GICS sector indices are mapped into old sector indices, while GICS sub-industry indices are mapped into old industry indices. Appendixes B1 and C1 show similar information for the S&P MidCap 400 and the S&P SmallCap 600 indices, respectively.

We also show a statistical test of significance for the correlation coefficient. The test: For n observations and an observed correlation coefficient of r,

t = r √(n-2) √(1 - r2)

Degrees of freedom = n-2 At a 99% degree of significance, most of our chosen pairs reject the null hypothesis of the two return series having no correlation.

Overlap Of Index Composition Appendix A2 shows the composition of the companies in each S&P GICS

index as represented by percent of market capitalization and number of

Page 5: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

A GICS Overview for Standard & Poor's U.S. Indices

Standard & Poor’s Page 5

companies in the corresponding old index, and the composition of the companies in each old index as represented by percent of market capitalization and number of companies in the corresponding GICS index, for the S&P 500 industry indices. Appendices B2 and C2 show similar information for the S&P MidCap 400 and the S&P SmallCap 600 indices, respectively. The information on the number of matching companies and market capitalization shown is as of December 31, 2001. As discussed, this is the date when the old industry indices were discontinued. This analysis is illustrative only. Users may wish to perform this analysis at multiple periods in time, depending upon their specific situations. Index Services clients may be able to get the old industry index composition and GICS index compositions by contacting their account representative or the client services number listed at the front of this document.

Conclusion The purpose of this analysis is to give Standard & Poor's index

clients additional information for potentially supplementing historic GICS indices with old indices. While indices with high correlations and high overlap of constituents are good candidates for merging of index histories; users, depending upon situational requirements, should determine specific ranges for either variable.

Page 6: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

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VER

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TIN

G &

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LE T

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TIN

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132

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ENT

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AL M

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ISE)

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ILD

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PEC

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500

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b-In

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ry In

dice

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rsus

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stry

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ces,

Cor

rela

tion

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mar

y (c

ont'd

)

Page 8: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

A1 (c

ont’d

)

Stan

dard

& P

oor’

s

Pa

ge 8

GIC

S co

deS&

P G

ICS

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x

Old

In

dust

ry

code

S&P

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latio

n

Stat

istic

ally

Si

gnifi

cant

at

99%

?

Num

ber o

f M

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ly

Obs

erva

tions

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UG

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AIL

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AIL

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UG

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RES

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0.0%

yes

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D D

ISTR

IBU

TOR

S 21

7D

ISTR

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S (F

OO

D &

HEA

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.0%

yes

132

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FOO

D R

ETAI

L 44

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L (F

OO

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100.

0%ye

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230

2010

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AGES

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UR

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CTS

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ULT

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OD

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TS

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HO

LD P

RO

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CTS

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UR

ABLE

S)10

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132

3030

2010

PER

SON

AL P

RO

DU

CTS

21

5PE

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NAL

CAR

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yes

132

3510

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ITIE

S 29

5H

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H C

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MAN

AGED

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E 28

7H

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H C

ARE

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AGED

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0.0%

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2010

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OTE

CH

NO

LOG

Y 14

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OTE

CH

NO

LOG

Y10

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3520

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PHAR

MAC

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CAL

S 28

5H

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S-M

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S)10

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132

3520

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PHAR

MAC

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CAL

S 28

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UAL

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ry In

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stry

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ces,

Cor

rela

tion

Sum

mar

y (c

ont'd

)

Page 9: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

A2

Stan

dard

& P

oor’

s

Pa

ge 9

GIC

S co

deS&

P G

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ber o

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dex

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ry

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ber o

f C

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inde

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ber o

f Co

mpa

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Page 10: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

A2 (c

ont’d

)

Stan

dard

& P

oor’

s

Pa

ge 1

0

GIC

S co

deS&

P G

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x

Num

ber o

f Co

mpa

nies

in

GIC

S in

dex

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inde

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OD

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RES

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PEC

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0.0%

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MPU

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& E

LEC

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ETAI

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MPU

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ENT

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CIA

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posi

tion

of S

&P

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GIC

S Su

b-In

dust

ry In

dice

s Ve

rsus

Old

Indu

stry

Indi

ces,

as

of 1

2/31

/200

1 (c

ont'd

)

Page 11: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

A2 (c

ont’d

)

Stan

dard

& P

oor’

s

Pa

ge 1

1

GIC

S co

deS&

P G

ICS

Inde

x

Num

ber o

f C

ompa

nies

in

GIC

S in

dex

Old

In

dust

ry

code

S&P

Old

Inde

x

Num

ber o

f C

ompa

nies

in

Old

inde

x

Num

ber o

f Co

mpa

nies

in

Com

mon

GIC

S M

arke

t C

ap in

Old

In

dex

Old

Mar

ket

Cap

in G

ICS

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x30

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RU

G R

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RES

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OD

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TRIB

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OD

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ERS

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AGES

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OLI

C)

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%10

0.0%

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1020

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TILL

ERS

& VI

NTN

ERS

114

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AGES

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OH

OLI

C)

31

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FT D

RIN

KS

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AGES

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AL P

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OD

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ETW

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KIN

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QU

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RS

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MM

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APH

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0%10

0.0%

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INTE

GR

ATED

TEL

ECO

M S

ERVI

CES

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715

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PHO

NE

77

100.

0%75

.6%

5010

2010

WIR

ELES

S TE

LEC

OM

SER

VIC

ES

346

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LEC

OM

MU

NIC

ATIO

NS

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LULA

R/W

IREL

ESS)

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0%10

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1010

ELEC

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UTI

LITI

ES

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IC C

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100.

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2010

GAS

UTI

LITI

ES

771

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ATU

RAL

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3010

MU

LTI-

UTI

LITI

ES

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ATU

RAL

GAS

92

32.0

%10

0.0%

Com

posi

tion

of S

&P

500

GIC

S Su

b-In

dust

ry In

dice

s Ve

rsus

Old

Indu

stry

Indi

ces,

as

of 1

2/31

/200

1 (c

ont'd

)

Page 12: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

B1

Stan

dard

& P

oor’

s

Pa

ge 1

2

GIC

S co

deS&

P G

ICS

Inde

xO

ld In

dust

ry

code

S&P

Old

Inde

xC

orre

latio

n

Stat

istic

ally

Si

gnifi

cant

at

99%

?

Num

ber o

f M

onth

ly

Obs

erva

tions

10EN

ERG

Y93

5EN

ERG

Y 10

0%ye

s85

15M

ATER

IALS

970

BASI

C M

ATER

IALS

10

0%ye

s85

20IN

DU

STR

IALS

925

CAP

ITAL

GO

OD

S 94

%ye

s85

25C

ON

SUM

ER D

ISC

RET

ION

ARY

976

CO

NSU

MER

CYC

LIC

ALS

99%

yes

8530

CO

NSU

MER

STA

PLES

978

CO

NSU

MER

STA

PLES

87

%ye

s67

35H

EALT

H C

ARE

905

HEA

LTH

CAR

E 99

%ye

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40FI

NAN

CIA

LS80

0FI

NAN

CIA

LS

100%

yes

6745

INFO

RM

ATIO

N T

ECH

NO

LOG

Y94

0TE

CH

NO

LOG

Y 99

%ye

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50TE

LEC

OM

SER

VIC

ES97

4C

OM

MU

NIC

ATIO

N S

ERVI

CES

99

%ye

s80

55U

TILI

TIES

700

UTI

LITI

ES

100%

yes

67

GIC

S co

deS&

P G

ICS

Inde

xO

ld In

dust

ry

code

S&P

Old

Inde

xC

orre

latio

n

Stat

istic

ally

Si

gnifi

cant

at

99%

?

Num

ber o

f M

onth

ly

Obs

erva

tions

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1010

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& G

AS D

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LIN

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IL &

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(DR

ILLI

NG

& E

QU

IPM

ENT)

99%

yes

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1010

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IL &

GAS

EQ

UIP

MEN

T &

SER

VIC

ES39

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IL &

GAS

(DR

ILLI

NG

& E

QU

IPM

ENT)

99%

yes

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1020

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RAT

ED O

IL &

GAS

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NAT

UR

AL G

AS94

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1010

2020

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& G

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ION

& P

RO

DU

CTI

ON

380

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ION

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RO

DU

CTI

ON

)10

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2030

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& G

AS R

EFIN

ING

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ARKE

TIN

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G &

MAR

KETI

NG

)10

0%ye

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1510

1010

CO

MM

OD

ITY

CH

EMIC

ALS

160

CH

EMIC

ALS

93%

yes

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1010

20D

IVER

SIFI

ED C

HEM

ICAL

S16

5C

HEM

ICAL

S (D

IVER

SIFI

ED)

98%

yes

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1010

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IVER

SIFI

ED C

HEM

ICAL

S16

0C

HEM

ICAL

S84

%ye

s85

1510

1030

FER

TILI

ZER

S &

AGR

ICU

LTU

RAL

CH

EMIC

ALS

160

CH

EMIC

ALS

91%

yes

8515

1010

40IN

DU

STR

IAL

GAS

ES16

0C

HEM

ICAL

S38

%no

1215

1010

50SP

ECIA

LTY

CH

EMIC

ALS

167

CH

EMIC

ALS

(SPE

CIA

LTY)

93%

yes

8515

1020

10C

ON

STR

UC

TIO

N M

ATER

IALS

202

CO

NST

RU

CTI

ON

(CEM

ENT

& AG

GR

EGAT

ES)

100%

yes

8515

1030

20PA

PER

PAC

KAG

ING

210

CO

NTA

INER

S &

PAC

KAG

ING

(PAP

ER)

96%

yes

8515

1040

50ST

EEL

460

IRO

N &

STE

EL10

0%ye

s85

1510

5010

FOR

EST

PRO

DU

CTS

400

PAPE

R &

FO

RES

T PR

OD

UC

TS82

%ye

s85

1510

5020

PAPE

R P

RO

DU

CTS

400

PAPE

R &

FO

RES

T PR

OD

UC

TS94

%ye

s85

2010

1010

AER

OSP

ACE

& D

EFEN

SE11

0AE

RO

SPAC

E/D

EFEN

SE98

%ye

s85

2010

3010

CO

NST

RU

CTI

ON

& E

NG

INEE

RIN

G24

0EN

GIN

EER

ING

& C

ON

STR

UC

TIO

N10

0%ye

s85

2010

4010

ELEC

TRIC

AL C

OM

PON

ENTS

& E

QU

IPM

ENT

220

ELEC

TRIC

AL E

QU

IPM

ENT

97%

yes

8520

1050

10IN

DU

STR

IAL

CO

NG

LOM

ERAT

ES35

5M

ANU

FAC

TUR

ING

(DIV

ERSI

FIED

)85

%ye

s85

2010

6010

CO

NST

RU

CTI

ON

& F

ARM

MAC

HIN

ERY

345

MAC

HIN

ERY

(DIV

ERSI

FIED

)89

%ye

s85

2010

6020

IND

UST

RIA

L M

ACH

INER

Y35

5M

ANU

FAC

TUR

ING

(DIV

ERSI

FIED

)77

%ye

s85

2020

1010

CO

MM

ERC

IAL

PRIN

TIN

G45

8SP

ECIA

LTY

PRIN

TIN

G10

0%ye

s85

2020

1020

DAT

A PR

OC

ESSI

NG

SER

VIC

ES45

3SE

RVI

CES

(DAT

A PR

OC

ESSI

NG

)84

%ye

s85

2020

1030

DIV

ERSI

FIED

CO

MM

ERC

IAL

SER

VIC

ES17

5SE

RVI

CES

(CO

MM

ERC

IAL

& C

ON

SUM

ER)

95%

yes

8520

2010

40EM

PLO

YMEN

T SE

RVI

CES

457

SER

VIC

ES (E

MPL

OYM

ENT)

79%

yes

8520

2010

60O

FFIC

E SE

RVI

CES

& S

UPP

LIES

370

OFF

ICE

EQU

IPM

ENT

& SU

PPLI

ES10

0%ye

s85

2030

1010

AIR

FR

EIG

HT

& C

OU

RIE

RS

620

AIR

FR

EIG

HT

100%

yes

8520

3020

10AI

RLI

NES

605

AIR

LIN

ES10

0%ye

s85

S&P

Mid

Cap

400

GIC

S Se

ctor

Indi

ces

Vers

us O

ld S

ecto

r Ind

ices

, Cor

rela

tion

Sum

mar

y

S&P

Mid

Cap

400

GIC

S Su

b-In

dust

ry In

dice

s Ve

rsus

Old

Indu

stry

Indi

ces,

Cor

rela

tion

Sum

mar

y

Page 13: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

B1 (c

ont’d

)

Stan

dard

& P

oor’

s

Pa

ge 1

3

GIC

S co

deS&

P G

ICS

Inde

xO

ld In

dust

ry

code

S&P

Old

Inde

xC

orre

latio

n

Stat

istic

ally

Si

gnifi

cant

at

99%

?

Num

ber o

f M

onth

ly

Obs

erva

tions

2030

3010

MAR

INE

612

SHIP

PIN

G10

0%ye

s85

2030

4010

RAI

LRO

ADS

610

RAI

LRO

ADS

100%

yes

1120

3040

20TR

UC

KIN

G61

5TR

UC

KER

S10

0%ye

s85

2510

1010

AUTO

PAR

TS &

EQ

UIP

MEN

T13

0AU

TO P

ARTS

& E

QU

IPM

ENT

100%

yes

8525

1010

20TI

RES

& R

UBB

ER13

0AU

TO P

ARTS

& E

QU

IPM

ENT

61%

yes

4825

2010

20H

OM

E FU

RN

ISH

ING

S31

5H

OU

SEH

OLD

FU

RN

ISH

ING

S. &

APP

LIAN

CES

93%

yes

8525

2010

20H

OM

E FU

RN

ISH

ING

S46

7TE

XTIL

ES (H

OM

E FU

RN

ISH

ING

S)80

%ye

s67

2520

1030

HO

MEB

UIL

DIN

G30

5H

OM

EBU

ILD

ING

100%

yes

8525

2010

50H

OU

SEW

ARES

& S

PEC

IALT

IES

203

CO

NSU

MER

(JEW

ELR

Y, N

OVE

LTIE

S, &

GIF

TS)

92%

yes

8525

2020

10LE

ISU

RE

PRO

DU

CTS

475

LEIS

UR

E TI

ME

(PR

OD

UC

TS)

13%

no85

2520

3030

TEXT

ILES

468

TEXT

ILES

(SPE

CIA

LTY)

100%

yes

8525

3010

10C

ASIN

OS

& G

AMIN

G26

2G

AMIN

G, L

OTT

ERY,

& P

ARI-M

UTU

EL C

OM

PAN

IES

90%

yes

8525

3010

30LE

ISU

RE

FAC

ILIT

IES

475

LEIS

UR

E TI

ME

(PR

OD

UC

TS)

61%

yes

2925

3010

40R

ESTA

UR

ANTS

420

RES

TAU

RAN

TS10

0%ye

s85

2540

1010

ADVE

RTI

SIN

G45

6SE

RVI

CES

(AD

VER

TISI

NG

/MAR

KETI

NG

)96

%ye

s85

2540

1020

BRO

ADC

ASTI

NG

& C

ABLE

TV

150

BRO

ADC

ASTI

NG

(TEL

EVIS

ION

, RAD

IO, &

CAB

LE)

100%

yes

8525

4010

40PU

BLIS

HIN

G &

PR

INTI

NG

415

PUBL

ISH

ING

(NEW

SPAP

ERS)

98%

yes

8525

5020

10C

ATAL

OG

RET

AIL

447

RET

AIL

(HO

ME

SHO

PPIN

G)

100%

yes

8525

5030

10D

EPAR

TMEN

T ST

OR

ES43

0R

ETAI

L (D

EPAR

TMEN

T ST

OR

ES)

100%

yes

6625

5030

20G

ENER

AL M

ERC

HAN

DIS

E ST

OR

ES43

2R

ETAI

L (D

ISC

OU

NTE

RS)

99%

yes

8525

5030

20G

ENER

AL M

ERC

HAN

DIS

E ST

OR

ES44

5R

ETAI

L (G

ENER

AL M

ERC

HAN

DIS

E)93

%ye

s85

2550

4010

APPA

REL

RET

AIL

452

RET

AIL

(SPE

CIA

LTY-

APPA

REL

)10

0%ye

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2550

4020

CO

MPU

TER

& E

LEC

TRO

NIC

S R

ETAI

L42

6R

ETAI

L (C

OM

PUTE

RS

& EL

ECTR

ON

ICS)

99%

yes

8225

5040

40SP

ECIA

LTY

STO

RES

449

RET

AIL

(SPE

CIA

LTY)

100%

yes

8530

1010

30FO

OD

RET

AIL

440

RET

AIL

(FO

OD

CH

AIN

S)10

0%ye

s85

3020

1030

SOFT

DR

INKS

145

BEVE

RAG

ES (N

ON

-ALC

OH

OLI

C)

100%

yes

8530

2020

20M

EAT

POU

LTR

Y &

FISH

250

FOO

DS

69%

yes

8530

2020

30PA

CKA

GED

FO

OD

S25

0FO

OD

S94

%ye

s85

3020

3010

TOBA

CC

O47

0TO

BAC

CO

100%

yes

3135

1010

10H

EALT

H C

ARE

EQU

IPM

ENT

300

SUPP

LIES

)98

%ye

s85

3510

1020

HEA

LTH

CAR

E SU

PPLI

ES30

0SU

PPLI

ES)

39%

yes

7635

1020

20H

EALT

H C

ARE

FAC

ILIT

IES

295

400

HEA

LTH

CAR

E (H

OSP

ITAL

MAN

AGEM

ENT)

81%

yes

5435

1020

30M

ANAG

ED H

EALT

H C

ARE

287

HEA

LTH

CAR

E (M

ANAG

ED C

ARE)

100%

yes

8535

2010

10BI

OTE

CH

NO

LOG

Y14

7BI

OTE

CH

NO

LOG

Y10

0%ye

s85

3520

2010

PHAR

MAC

EUTI

CAL

S28

0H

EALT

H C

ARE

(DIV

ERSI

FIED

)89

%ye

s85

3520

2010

PHAR

MAC

EUTI

CAL

S28

3H

EALT

H C

ARE

(DR

UG

S-G

ENER

IC &

OTH

ER)

76%

yes

8540

1010

10BA

NKS

817

BAN

KS (R

EGIO

NAL

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0%ye

s85

4020

1010

CO

NSU

MER

FIN

ANC

E84

5C

ON

SUM

ER F

INAN

CE

97%

yes

1140

2010

20D

IVER

SIFI

ED F

INAN

CIA

L SE

RVI

CES

822

INVE

STM

ENT

BAN

KIN

G/B

RO

KER

AGE

99%

yes

8540

3010

20LI

FE &

HEA

LTH

INSU

RAN

CE

825

INSU

RAN

CE

(LIF

E/H

EALT

H)

100%

yes

8540

3010

30M

ULT

I-LIN

E IN

SUR

ANC

E83

5IN

SUR

ANC

E (P

RO

PER

TY-C

ASU

ALTY

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%ye

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4030

1040

PRO

PER

TY &

CAS

UAL

TY IN

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ANC

E83

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SUR

ANC

E (P

RO

PER

TY-C

ASU

ALTY

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%ye

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S&P

Mid

Cap

400

GIC

S Su

b-In

dust

ry In

dice

s Ve

rsus

Old

Indu

stry

Indi

ces,

Cor

rela

tion

Sum

mar

y

Page 14: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

B1 (c

ont’d

)

Stan

dard

& P

oor’

s

Pa

ge 1

4

GIC

S co

deS&

P G

ICS

Inde

xO

ld In

dust

ry

code

S&P

Old

Inde

xC

orre

latio

n

Stat

istic

ally

Si

gnifi

cant

at

99%

?

Num

ber o

f M

onth

ly

Obs

erva

tions

4510

1010

INTE

RN

ET S

OFT

WAR

E &

SER

VIC

ES18

5C

OM

PUTE

RS

(SO

FTW

ARE

& SE

RVI

CES

)77

%ye

s53

4510

2010

IT C

ON

SULT

ING

& S

ERVI

CES

454

SER

VIC

ES (C

OM

PUTE

R S

YSTE

MS)

93%

yes

6745

1030

10AP

PLIC

ATIO

N S

OFT

WAR

E18

5C

OM

PUTE

RS

(SO

FTW

ARE

& SE

RVI

CES

)97

%ye

s85

4510

3020

SYST

EMS

SOFT

WAR

E18

5C

OM

PUTE

RS

(SO

FTW

ARE

& SE

RVI

CES

)96

%ye

s85

4520

1010

NET

WO

RKI

NG

EQ

UIP

MEN

T18

7C

OM

PUTE

RS

(NET

WO

RKI

NG

)10

0%ye

s19

4520

1020

TELE

CO

MS

EQU

IPM

ENT

180

CO

MM

UN

ICAT

ION

S EQ

UIP

MEN

T10

0%ye

s85

4520

2020

CO

MPU

TER

STO

RAG

E &

PER

IPH

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OM

PUTE

RS

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ERAL

S)10

0%ye

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ELEC

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NIC

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SEM

ICO

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UC

TOR

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EMIC

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DU

CTO

RS)

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yes

7045

2050

20SE

MIC

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DU

CTO

RS

235

ELEC

TRO

NIC

S (S

EMIC

ON

DU

CTO

RS)

100%

yes

8550

1010

20IN

TEG

RAT

ED T

ELEC

OM

SER

VIC

ES71

5TE

LEPH

ON

E95

%ye

s85

5010

2010

WIR

ELES

S TE

LEC

OM

SER

VIC

ES46

2TE

LEC

OM

MU

NIC

ATIO

NS

(CEL

LULA

R/W

IREL

ESS)

19%

no85

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1010

ELEC

TRIC

UTI

LITI

ES70

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ECTR

IC C

OM

PAN

IES

96%

yes

8555

1020

10G

AS U

TILI

TIES

710

NAT

UR

AL G

AS10

0%ye

s85

5510

3010

MU

LTI -

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LITI

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ECTR

IC C

OM

PAN

IES

82%

yes

8555

1040

10W

ATER

UTI

LITI

ES72

5W

ATER

UTI

LITI

ES10

0%ye

s73

S&P

Mid

Cap

400

GIC

S Su

b-In

dust

ry In

dice

s Ve

rsus

Old

Indu

stry

Indi

ces,

Cor

rela

tion

Sum

mar

y

Page 15: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

B2

Stan

dard

& P

oor’

s

Pa

ge 1

5

GIC

S co

deS&

P G

ICS

Inde

x

Num

ber o

f C

ompa

nies

in

GIC

S in

dex

Old

In

dust

ry

code

S&P

Old

Inde

x

Num

ber o

f Co

mpa

nies

in

Old

inde

x

Num

ber o

f C

ompa

nies

in

Com

mon

GIC

S M

arke

t Ca

p in

Old

In

dex

Old

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ket

Cap

in G

ICS

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x10

ENER

GY

2393

5EN

ERG

Y 21

2110

0%94

%15

MAT

ERIA

LS29

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BASI

C M

ATER

IALS

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2997

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IND

UST

RIA

LS67

925

CAP

ITAL

GO

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S 37

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CO

NSU

MER

DIS

CR

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Y57

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NSU

MER

CYC

LIC

ALS

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81%

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ON

SUM

ER S

TAPL

ES19

978

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NSU

MER

STA

PLES

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HEA

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CIA

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99%

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MAT

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GY

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CH

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LOG

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M S

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N S

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UTI

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100%

GIC

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P G

ICS

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x

Num

ber o

f C

ompa

nies

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S in

dex

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ry

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x

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ber o

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f C

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dex

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ket

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IL &

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ILLI

NG

439

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ILLI

NG

& E

QU

IPM

ENT)

134

28%

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1010

1020

OIL

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QU

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CES

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ILLI

NG

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QU

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139

72%

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1010

2010

INTE

GR

ATED

OIL

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AS1

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UR

AL G

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RO

DU

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MAR

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NG

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0%87

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10C

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MO

DIT

Y C

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CH

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1020

DIV

ERSI

FIED

CH

EMIC

ALS

316

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HEM

ICAL

S (D

IVER

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16%

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1020

DIV

ERSI

FIED

CH

EMIC

ALS

316

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UR

AL C

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UST

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UC

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ATER

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rsus

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stry

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ces,

as

of 1

2/31

/200

1

Page 16: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

B2 (c

ont’d

)

Stan

dard

& P

oor’

s

Pa

ge 1

6

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S co

deS&

P G

ICS

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x

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ber o

f Co

mpa

nies

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dex

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ry

code

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ber o

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inde

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ber o

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mon

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ap in

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dex

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ket

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ICS

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rsus

Old

Indu

stry

Indi

ces,

as

of 1

2/31

/200

1

Page 17: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

B2 (c

ont’d

)

Stan

dard

& P

oor’

s

Pa

ge 1

7

GIC

S co

deS&

P G

ICS

Inde

x

Num

ber o

f Co

mpa

nies

in

GIC

S in

dex

Old

In

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ry

code

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x

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ber o

f C

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nies

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inde

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ber o

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rsus

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stry

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as

of 1

2/31

/200

1

Page 18: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

C1

Stan

dard

& P

oor’

s

Pa

ge 1

8

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ctor

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us O

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r Ind

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lCap

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rsus

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stry

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ces,

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rela

tion

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mar

y

Page 19: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

C1 (c

ont’d

)

Stan

dard

& P

oor’

s

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ge 1

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ber o

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mar

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Page 20: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

C1 (c

ont’d

)

Stan

dard

& P

oor’

s

Pa

ge 2

0

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deS&

P G

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mar

y

Page 21: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

C2

Stan

dard

& P

oor’

s

Pa

ge 2

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posi

tion

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lCap

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S Se

ctor

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ces

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us O

ld S

ecto

r Ind

ices

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of 1

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1

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posi

tion

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lCap

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ry In

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rsus

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stry

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ces,

as

of 1

2/31

/200

1

Page 22: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

C2 (c

ont’d

)

Stan

dard

& P

oor’

s

Pa

ge 2

2

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S co

deS&

P G

ICS

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x

Num

ber o

f Co

mpa

nies

in

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S in

dex

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In

dust

ry

code

S&P

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x

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ber o

f Co

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nies

in

Old

inde

x

Num

ber o

f Co

mpa

nies

in

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mon

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t Ca

p in

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dex

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ket

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b-In

dust

ry In

dice

s Ve

rsus

Old

Indu

stry

Indi

ces,

as

of 1

2/31

/200

1

Page 23: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

C2 (c

ont’d

)

Stan

dard

& P

oor’

s

Pa

ge 2

3

GIC

S co

deS&

P G

ICS

Inde

x

Num

ber o

f Co

mpa

nies

in

GIC

S in

dex

Old

In

dust

ry

code

S&P

Old

Inde

x

Num

ber o

f Co

mpa

nies

in

Old

inde

x

Num

ber o

f Co

mpa

nies

in

Com

mon

GIC

S M

arke

t Ca

p in

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dex

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ket

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ICS

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b-In

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dice

s Ve

rsus

Old

Indu

stry

Indi

ces,

as

of 1

2/31

/200

1

Page 24: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

D – T

he G

ICS

Stru

cture

Stan

dard

& P

oor’

s

Page

24

GIC

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ring

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stru

ctio

n &

Eng

inee

ring

2010

4010

El

ectri

cal E

quip

men

t El

ectri

cal C

ompo

nent

s & E

quip

men

t 20

1040

20

H

eavy

Ele

ctric

al E

quip

men

t 20

1050

10

Indu

stria

l Con

glom

erat

es

Indu

stria

l Con

glom

erat

es

2010

6010

M

achi

nery

C

onst

ruct

ion

& F

arm

Mac

hine

ry &

Hea

vy

Truc

ks

2010

6020

Indu

stria

l Mac

hine

ry

2010

7010

Tr

adin

g C

ompa

nies

& D

istri

buto

rs

Trad

ing

Com

pani

es &

Dis

tribu

tors

20

2010

10

C

omm

erci

al S

ervi

ces &

Sup

plie

s C

omm

erci

al S

ervi

ces &

Sup

plie

s C

omm

erci

al P

rintin

g 20

2010

20

D

ata

Proc

essi

ng S

ervi

ces

2020

1030

Div

ersi

fied

Com

mer

cial

Ser

vice

s 20

2010

40

Em

ploy

men

t Ser

vice

s 20

2010

50

En

viro

nmen

tal S

ervi

ces

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Appe

ndix

D – T

he G

ICS

Stru

cture

(con

t’d)

Stan

dard

& P

oor’

s

Page

25

G

ICS

Cod

e SE

CTO

R

IND

UST

RY

GR

OU

P IN

DU

STR

Y

SUB

-IN

DU

STR

Y

2020

1060

In

dust

rials

(con

t’d)

Com

mer

cial

Ser

vice

s & S

uppl

ies

Com

mer

cial

Ser

vice

s & S

uppl

ies

Off

ice

Serv

ices

& S

uppl

ies

2030

1010

Tran

spor

tatio

n A

ir Fr

eigh

t & L

ogis

tics

Air

Frei

ght &

Log

istic

s 20

3020

10

Airl

ines

A

irlin

es

2030

3010

M

arin

e M

arin

e 20

3040

10

Roa

d &

Rai

l R

ailro

ads

2030

4020

Truc

king

20

3050

10

Tran

spor

tatio

n In

fras

truct

ure

Airp

ort S

ervi

ces

2030

5020

Hig

hway

s & R

ailtr

acks

20

3050

30

M

arin

e Po

rts &

Ser

vice

s 25

1010

10

Con

sum

er D

iscr

etio

nary

A

utom

obile

s & C

ompo

nent

s A

uto

Com

pone

nts

Aut

o Pa

rts &

Equ

ipm

ent

2510

1020

Tire

s & R

ubbe

r 25

1020

10

Aut

omob

iles

Aut

omob

ile M

anuf

actu

rers

25

1020

20

M

otor

cycl

e M

anuf

actu

rers

25

2010

10

C

onsu

mer

Dur

able

s & A

ppar

el

Hou

seho

ld D

urab

les

Con

sum

er E

lect

roni

cs

2520

1020

Hom

e Fu

rnis

hing

s 25

2010

30

H

omeb

uild

ing

2520

1040

Hou

seho

ld A

pplia

nces

25

2010

50

H

ouse

war

es &

Spe

cial

ties

2520

2010

Le

isur

e Eq

uipm

ent &

Pro

duct

s Le

isur

e Pr

oduc

ts

2520

2020

Phot

ogra

phic

Pro

duct

s 25

2030

10

Text

iles,

App

arel

& L

uxur

y G

oods

A

ppar

el, A

cces

sorie

s & L

uxur

y G

oods

25

2030

20

Fo

otw

ear

2520

3030

Text

iles

2530

1010

Hot

els R

esta

uran

ts &

Lei

sure

H

otel

s Res

taur

ants

& L

eisu

re

Cas

inos

& G

amin

g 25

3010

20

H

otel

s, R

esor

ts &

Cru

ise

Line

s 25

3010

30

Le

isur

e Fa

cilit

ies

2530

1040

Res

taur

ants

25

4010

10

M

edia

M

edia

A

dver

tisin

g 25

4010

20

B

road

cast

ing

& C

able

TV

25

4010

30

M

ovie

s & E

nter

tain

men

t 25

4010

40

Pu

blis

hing

25

5010

10

R

etai

ling

Dis

tribu

tors

D

istri

buto

rs

2550

2010

In

tern

et &

Cat

alog

Ret

ail

Cat

alog

Ret

ail

2550

2020

Inte

rnet

Ret

ail

2550

3010

M

ultil

ine

Ret

ail

Dep

artm

ent S

tore

s 25

5030

20

G

ener

al M

erch

andi

se S

tore

s

Page 26: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

D – T

he G

ICS

Stru

cture

(con

t’d)

Stan

dard

& P

oor’

s

Page

26

G

ICS

Cod

e SE

CTO

R

IND

UST

RY

GR

OU

P IN

DU

STR

Y

SUB

-IN

DU

STR

Y

2550

4010

C

onsu

mer

Dis

cret

iona

ry

(con

t’d)

Ret

ailin

g Sp

ecia

lty R

etai

l A

ppar

el R

etai

l 25

5040

20

C

ompu

ter &

Ele

ctro

nics

Ret

ail

2550

4030

Hom

e Im

prov

emen

t Ret

ail

2550

4040

Spec

ialty

Sto

res

3010

1010

C

onsu

mer

Sta

ple

Food

& D

rug

Ret

ailin

g Fo

od &

Dru

g R

etai

ling

Dru

g R

etai

l 30

1010

20

Fo

od D

istri

buto

rs

3010

1030

Food

Ret

ail

3020

1010

Food

Bev

erag

e &

Tob

acco

B

ever

ages

B

rew

ers

3020

1020

Dis

tille

rs &

Vin

tner

s 30

2010

30

So

ft D

rinks

30

2020

10

Food

Pro

duct

s A

gric

ultu

ral P

rodu

cts

3020

2020

Mea

t Pou

ltry

& F

ish

(Dis

cont

inue

d, 3

/28/

02)

3020

2030

Pack

aged

Foo

ds &

Mea

ts

3020

3010

To

bacc

o To

bacc

o 30

3010

10

H

ouse

hold

& P

erso

nal P

rodu

cts

Hou

seho

ld P

rodu

cts

Hou

seho

ld P

rodu

cts

3030

2010

Pe

rson

al P

rodu

cts

Pers

onal

Pro

duct

s 35

1010

10

Hea

lth C

are

Hea

lth C

are

Equi

pmen

t & S

ervi

ces

Hea

lth C

are

Equi

pmen

t & S

uppl

ies

Hea

lth C

are

Equi

pmen

t 35

1010

20

H

ealth

Car

e Su

pplie

s 35

1020

10

Hea

lth C

are

Prov

ider

s & S

ervi

ces

Hea

lth C

are

Dis

tribu

tors

& S

ervi

ces

3510

2020

Hea

lth C

are

Faci

litie

s 35

1020

30

M

anag

ed H

ealth

Car

e 35

2010

10

Ph

arm

aceu

tical

s & B

iote

chno

logy

B

iote

chno

logy

B

iote

chno

logy

35

2020

10

Phar

mac

eutic

als

Phar

mac

eutic

als

4010

1010

Fi

nanc

ials

B

anks

B

anks

B

anks

40

2010

10

D

iver

sifie

d Fi

nanc

ials

D

iver

sifie

d Fi

nanc

ials

C

onsu

mer

Fin

ance

40

2010

20

D

iver

sifie

d Fi

nanc

ial S

ervi

ces

4020

1030

Mul

ti-Se

ctor

Hol

ding

s 40

3010

10

In

sura

nce

Insu

ranc

e In

sura

nce

Bro

kers

40

3010

20

Li

fe &

Hea

lth In

sura

nce

4030

1030

Mul

ti-lin

e In

sura

nce

4030

1040

Prop

erty

& C

asua

lty In

sura

nce

4030

1050

Rei

nsur

ance

40

4010

10

R

eal E

stat

e R

eal E

stat

e R

eal E

stat

e In

vest

men

t Tru

sts

4040

1020

Rea

l Est

ate

Man

agem

ent &

Dev

elop

men

t

Page 27: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appe

ndix

D – T

he G

ICS

Stru

cture

(con

t’d)

Stan

dard

& P

oor’

s

Page

27

G

ICS

Cod

e SE

CTO

R

IND

UST

RY

GR

OU

P IN

DU

STR

Y

SUB

-IN

DU

STR

Y

4510

1010

In

form

atio

n Te

chno

logy

So

ftwar

e &

Ser

vice

s In

tern

et S

oftw

are

& S

ervi

ces

Inte

rnet

Sof

twar

e &

Ser

vice

s 45

1020

10

IT C

onsu

lting

& S

ervi

ces

IT C

onsu

lting

& S

ervi

ces

4510

3010

So

ftwar

e A

pplic

atio

n So

ftwar

e 45

1030

20

Sy

stem

s Sof

twar

e 45

2010

10

Te

chno

logy

Har

dwar

e &

Equ

ipm

ent

Com

mun

icat

ions

Equ

ipm

ent

Net

wor

king

Equ

ipm

ent

4520

1020

Tele

com

mun

icat

ions

Equ

ipm

ent

4520

2010

C

ompu

ter &

Per

iphe

rals

C

ompu

ter H

ardw

are

4520

2020

Com

pute

r Sto

rage

& P

erip

hera

ls

4520

3010

El

ectro

nic

Equi

pmen

t & In

stru

men

ts

Elec

troni

c Eq

uipm

ent &

Inst

rum

ents

45

2040

10

Off

ice

Elec

troni

cs

Off

ice

Elec

troni

cs

4520

5010

Se

mic

ondu

ctor

Equ

ipm

ent &

Pro

duct

s Se

mic

ondu

ctor

Equ

ipm

ent

4520

5020

Sem

icon

duct

ors

5010

1010

Te

leco

mm

unic

atio

n Se

rvic

es

Tele

com

mun

icat

ion

Serv

ices

D

iver

sifie

d Te

leco

mm

unic

atio

n Se

rvic

es

Alte

rnat

ive

Car

riers

5010

1020

Inte

grat

ed T

elec

omm

unic

atio

n Se

rvic

es

5010

2010

W

irele

ss T

elec

omm

unic

atio

n Se

rvic

es

Wire

less

Tel

ecom

mun

icat

ion

Serv

ices

55

1010

10

Util

ities

U

tiliti

es

Elec

tric

Util

ities

El

ectri

c U

tiliti

es

5510

2010

G

as U

tiliti

es

Gas

Util

ities

55

1030

10

Mul

ti-U

tiliti

es

Mul

ti-U

tiliti

es &

Unr

egul

ated

Pow

er

5510

4010

W

ater

Util

ities

W

ater

Util

ities

Page 28: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appendix E

Standard & Poor’s Page 28

Standard & Poor's U.S. Indices and GICS The Standard & Poor's Global 1200 and its regional components were

created and designed with GICS as their original industry scheme. The Standard & Poor's family of U.S. indices pre-date GICS and were developed using an alternate industry classification system.

In January, 2001, GICS became the primary industry classification system for all Standard & Poor’s U.S. indices – the S&P 500, the S&P MidCap 400, the S&P SmallCap 600 and the S&P 1500 SuperComposite. All sector and industry indices under the old industry classification scheme were officially discontinued on December 31st, 2001.

Listed below are some of the more meaningful changes that occurred to industry definitions in the movement of the Standard & Poor's U.S. Indices to the Global Industry Classification Standard.

GICS Consumer Discretionary Sector: �� The old Consumer Cyclicals Sector name has been changed to the

Consumer Discretionary Sector under GICS.

�� The old S&P 500 Retail Stores Composite Index has been largely replaced by the S&P 500 Retailing Industry Group Index in the GICS Consumer Discretionary Sector. The only sub-industries that do not fall under the new GICS Retailing Industry Group are companies classified under the Food & Drug Retailing Industry Group in the GICS Consumer Staples Sector.

�� Introduction of a Media Industry Group, which includes the Advertising, Broadcasting & Cable TV, Movies & Entertainment and Publishing GICS sub-industries. As a result of this consolidation, traditional Entertainment and Broadcasting companies are now classified under the GICS Consumer Discretionary Sector; they are no longer under Consumer Staples.

�� Introduction of a Hotels, Restaurants & Leisure Industry Group, which includes the Casinos & Gaming, Hotels, Resorts & Cruise Lines, Leisure Facilities and Restaurants GICS sub-industries. As a result of this consolidation, traditional Restaurant companies are now classified under the GICS Consumer Discretionary Sector, they are no longer under Consumer Staples.

GICS Consumer Staples Sector: �� Introduction of a Food Products Industry, which includes the Agricultural

Products, and Packaged Foods & Meats GICS sub-industries. As a result of this consolidation, traditional Agricultural Products companies are now

Page 29: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appendix E (cont’d)

Standard & Poor’s Page 29

classified under the GICS Consumer Staples Sector, they are no longer under Basic Materials.

GICS Energy Sector: �� The old S&P 500 Oil Composite Index has been replaced by the S&P 500

Integrated Oil & Gas Sub-Industry Index in the GICS Energy Sector and GICS Oil & Gas Industry.

GICS Financials Sector: �� The old S&P 500 Banks Composite Index has been largely replaced by the

S&P 500 Banks Industry Group Index in the GICS Financials Sector, the major difference being the addition of traditional Savings & Loans companies to this GICS Industry Group.

�� The old S&P 500 Insurance Composite Index has been largely replaced by the S&P 500 Insurance Industry Group Index in the GICS Financials Sector, the major difference being the addition of traditional Insurance Brokers companies to this GICS Industry Group.

�� The REITs sub-industry is a part of the Financials Sector and is aligned with the Real Estate Management & Development sub-industry to form a Real Estate Industry and Industry Group.

GICS Health Care Sector: �� � The old S&P 500 Pharmaceuticals Composite Index has been replaced by

the S&P 500 Pharmaceuticals Industry and Sub-Industry Indices in the GICS Health Care Sector.

GICS Industrials Sector: �� The old Transportation Sector has been discontinued. Transportation has

become an Industry Group within the GICS Industrials Sector. In the last decade alone, the transportation sector shrank from 2% to ½% of the S&P 500. Now transportation related industries are included in the GICS Industrials Sector. The S&P 500 GICS Industrials Sector Index -- comprised largely of the old capital goods and transportation sectors -- should not be confused with the S&P Industrials Composite Index (the S&P 500 excluding Transportation, Financials, and Utilities).

�� The old Capital Goods Sector has been discontinued. Most of these companies are classified within a Capital Goods Industry Group in the GICS Industrials Sector.

Page 30: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Appendix E (cont’d)

Standard & Poor’s Page 30

�� Data Processing Services is now a sub-industry within the GICS Industrials Sector. Companies classified as Data Processors are no longer in the Information Technology Sector.

�� Employment Services, Environmental Services, and Diversified Commercial Services are now sub-industries the Commercial Services & Supplies Industry Group, which is part of the GICS Industrials Sector. Companies belonging to these industries are no longer classified in the Consumer Sectors.

�� The Building Products sub-industry is part of the GICS Industrials Sector to align with the Construction & Engineering GICS sub-industry. These companies are no longer considered Consumer Cyclicals.

GICS Materials Sector: �� The old S&P 500 Chemicals Composite Index has been replaced by the

S&P 500 Chemicals Industry Index in the GICS Materials Sector.

�� Introduction of a Containers & Packaging Industry, which includes the Metal & Glass Containers and Paper Packaging GICS sub-industries. As a result of this consolidation, traditional Containers companies are now classified as Materials, no longer Capital Goods.

Page 31: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Standard & Poor’s Page 31

Notes

Page 32: The Global Industry Classification Standard (GICS) July 22, 2002 Standard & Poor’s The Global Industry Classification Standard (GICS) SM An Overview for Standard & Poor’s U.S

Standard & Poor’s Page 32

This report is published by Standard & Poor’s, 55 Water Street, New York NY 10041. Copyright © 2001. Standard & Poor’s is a division of The McGraw-Hill Companies, Inc. All rights reserved. Standard & Poor’s does not undertake to advise you of changes in the information. These materials have been prepared solely for informational purposes based upon information generally available to the public from sources believed to be reliable. Standard & Poor’s makes no representation with respect to the accuracy or completeness of these materials, the content of which may change without notice. Standard & Poor’s disclaims any and all liability relating to these materials, including, without limitation, and makes no express or implied representations or warranties concerning the statements made contained in, or omissions from, these materials. No portion of this publication may be reproduced in any format or by any means including electronically or mechanically, by photocopying, recording or by any information storage or retrieval system, or by any other form of manner whatsoever, without the prior written consent of Standard & Poor’s. Occasionally, The McGraw-Hill Companies may use information you have provided to offer you products and services that may be of interest to you. If you do not wish us to share your information outside of The McGraw-Hill Companies, if you have questions about our privacy practices, or wish to confirm the accuracy of the information you may have provided, please contact us at 212-438-3534 or refer to http://www.mcgraw-hill.com/privacy.html. The Global Industry Classification Standard (GICS) SM was developed by and is the exclusive property and a service mark of Standard & Poor's and MSCI. Neither Standard & Poor's, MSCI nor any other party involved in making or compiling any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such standard or classification. Without limiting any of the forgoing, in not event shall Standard & Poor's, MSCI, any of their affiliates or any third party involved in making or compiling any GICS classification have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.