The current sector classification will be discontinued, together with calculation of indices based on it, with the sole exception of the fisheries index, which ICEX will continue to publish. Although fisheries is not defined as a separate industry in the GICS standard, its importance in Iceland provides more than a sufficient reason to continue the calculation of a fisheries index. Companies included in the fisheries sector will, however, like other listed companies, be classified under the GICS system and will thereby also be included in a sector index based on GICS.
There are two advantages in adopting the GICS classification: on the one hand, it facilitates comparison by investors with foreign markets, since this sector classification system is widely known and used; and on the other, it ensures that companies listed on ICEX will be eligible for inclusion in a new benchmark index for the Nordic countries, a NORDIC Index, which the NOREX exchanges are planning to launch and will utilise the GICS classification.
The GICS classification system is based on 10 sectors, 24 industry groups, 62 industries and 132 sub-industries. Companies are classified in a sub-industry in accordance with a description of their principal activities. They can only belong to one sub-industry. Their classification in an industry, industry group and sector is derived from the sub-industry to which they belong. In their classification, S&P and MSCI consider primarily for a company’s income composition. Earnings and market perception are, however, important information which is also taken into account.
ICEX will publish indices for each sector to which listed companies belong. Therefore, there can be a maximum of 10 indices, although to begin with they will be eight. The classification of companies currently listed on ICEX into sectors is given below.
10 Energy
Jardboranir hf.
15 Materials
No listed company
20 Industrials
Fiskmarkadur Islands hf.
FL Group hf.
Hampidjan hf.
Marel hf.
25 Consumer discretionary
Austurbakki hf.
30 Consumer staples
Bakkavor Group hf.
Fiskeldi Eyjafjardar hf.
HB Grandi hf.
Samherji hf.
SIF hf.
Slaturfelag Sudurlands svf.
Solumidstod hradfrystihusanna hf.
Vinnslustodin hf.
Thormodur rammi-Saeberg hf.
35 Health care
Actavis Group hf.
Flaga Group hf.
Ossur hf.
40 Financials
Atorka Group hf.
Burdaras hf.
Islandsbanki hf.
Kaupthing Bank
Landsbanki Islands hf.
Liftaeknisjodurinn hf.
Straumur Fjarfestingarbanki hf.
Tryggingamidstodin hf.
Taekifaeri hf.
45 Information technology
Kogun hf.
Nyherji hf.
50 Telecommunications services
Landssimi Islands hf. (Iceland Telecom)
Og fjarskipti hf.
55 Utilities
No listed company
The classification of the above-listed companies into industry groups, industries and sub-industries is shown in the attached document. A detailed description of GICS methodology is available on the websites of Standard & Poor's, http://www.gics.standardandpoors.com and of MSCI, www.msci.com.
Notice regarding the use of GICS:
The notice can be found on the ICEX website under the heading Quotes and markets>Share Indices>About indices: http://www.icex.is/is/shares_index?languageID=1&menu2show=1.5.1.1.
