Mind your peer group disclosures and LTI offer letters – The GICS sectors have changed
12/12/2016
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From 1 July 2016, real estate companies are no longer an industry within the finance sector, they are now a stand alone GICs sector. If you have a relative TSR peer group that specifically includes or excludes finance sector and/or real estate companies, you may need to amend the wording of your disclosures and offer letters.

Remember, you have to do what you said you would do, not what you meant.

The following table summarises the impact of the change and suggests what action is required.

Current Peer Group Rewording Required
General index constituents excluding finance sector companies You will have historically excluded real estate companies, so you will now need to exclude both finance sector and real estate sector companies
General index constituents excluding REITs REITs are now an industry within the real estate, so the wording should be the same as in previous years
General finance sector peer group You will have historically included real estate companies, so you will need to add the real estate sector to your peer group definition
General finance sector peer group excluding real estate companies or REITs You no longer need to exclude real estate companies or REITs, since they are no longer captured by the finance sector
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