S&P Dow Jones Indices and MSCI Inc. will reclassify the Real Estate Industry Group in their forthcoming GICS reorganisation. Real Estate will now become its own new sector and no longer an industry group that is part of the Financials sector. This will take the number of GICS sectors from 10 to 11 and will reduce the weight of Financials in any index that contains the Real Estate sub-industry.
How will this impact the Style Research Enterprise platform?
MSCI will implement this change effective September 1. Therefore, most Style Research Enterprise clients will see the addition of the new sector in early October (September portfolios).
For users that load and analyze monthly data, the first reports to contain the new sector will be at the end of September. If, however, analysis is scheduled on a daily basis then the new sector will be visible immediately in September.
The main noticeable difference will be wherever sector breakdowns are displayed. These include:
- Sector weight charts including trails and ranges
- Risk decompositions by sector
- Performance attribution by sector
The risk model will also incorporate the new sector.