Watch an introductory video presented by Geoff Horrell

TRBC Structure

Use the system developed by Thomson Reuters’ expert research and data teams. Why choose our schema? 

• A market-oriented schema, useful for any global market, not just US or Europe focused
• Builds on our experience as a global data provider and relies on detailed financial information from the most comprehensive fundamentals database in the world, Reuters Fundamentals
• Frequent review. Our team of analysts constantly monitors Reuters News, Deals & Global Filings for changes of activity that impact classification
• An up-to-date schema with more relevant industries e.g. Renewable Energy
• Well defined sectors, detailed enough to focus on particular industries whilst ensuring enough constituents for effective analysis
  

TRBC General fact sheets:

• Overview PDF 
• Quick Guide  PDF 
• Industry Descriptions   XLS

TRBC Sectors fact sheets:

• Basic Materials fact sheet PDF
• Energy fact sheet PDF
• Healthcare fact sheet PDF
• Industrials fact sheet PDF
• Cyclicals fact sheet PDF
• Non-cyclicals fact sheet PDF
• Financials fact sheet PDF
• Telecomm fact sheet PDF
• Technology fact sheet PDF
• Utilities fact sheet PDF

TRBC is developed, maintained and reviewed according to specific and transparent guidelines set forth by the TRBC team.

Thomson Reuters Business Classification Methodology
Updated November 2009

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2012 SCHEMA REVISION

As Markets and Businesses evolve, the tools you use need to adapt. We are pleased to announce changes to Thomson Reuters Business Classification that we think will make it an even more effective part of your investment toolkit. The changes follow a consultation period which has now ended, and the new schema will be effective as of April 2012. All Thomson Reuters Sector Indices will also feature the updated TRBC schema (5th level available on request).

Changes include new Industries for Uranium, Phones & Handheld Devices and Independent Power Producers. TRBC 2012 also includes a major innovation with the introduction of the "Activity", a new 5th level that identifies niche industries and allows the construction of exciting new themes such as Luxury, Cleantech and Infrastructure.

The 2012 hierarchy for all 5 levels of TRBC is available below. Descriptions for all Sectors, Groups, Industries and Activities will be available shortly before the new schema is available.

• TRBC April 2012 Schema 180K

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SECTOR REVIEW

Thomson Reuters Business Classification schema is reviewed every year. Company assignments are reviewed quarterly when earnings are filed.

Since its introduction in 2004 the TRBC steering group, consisting of internal Thomson Reuters and external business stakeholders has met regularly to review the structure of the scheme. The 2008 review produced recommendations to revise the scheme, with revisions effective from August 2009. The steering group meets on a quarterly basis to review emerging issues and solicit feedback from the investment community.

Every company in the TRBC universe is reviewed at least annually to determine if the assignment remains valid or whether the company has changed business model and/or business segments have changed in importance either organically or through acquisition/divestment. Over 50,000 companies are therefore reviewed every year by our dedicated content operations. Our analysts review the detailed financials of each business segment, update company descriptions and review any corporate activity that may have impacted company operations. We have a sophisticated alerting mechanism for corporate actions using various Thomson Reuters databases to ensure that all activity that could impact industry assignment is considered. Please see our methodology document for more details.

IndexUniverse.com – Sector ETFs: Highly Classified
June 2011

IndexUniverse.com talks about the importance of sector classification schemes for ETFs. The article uses differences between TRBC consumer sectors and rival schemas to show how choice of schema methodology is more important than expense ratio when selecting sector ETFs.

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Journal of Indexes
Signal from Noise: Evaluating sector classification systems
Dave Nadig and Lara Crigger
March/April 2011 Issue

This Journal of Indexes article compares TRBC with its two closest competitors by looking at the size and depth of their securities universes; the structure of their sorting methodologies; and inter-sector correlation analysis. The authors conclude that TRBC stands out as the most useful sector classification system for building sector indices and ultimately for ETF investors. 

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Test Driving Industry Classifications
Geoff Horrell & Rich Meraz
Sept./Oct. 2009 Issue

This paper describes how industry classifications in general, and Thomson Reuters Business Classification (TRBC) in particular, drive many aspects of modern investment management. They explore the idea that for an industry grouping to be useful, its constituents should have a tighter correlation to each other than each has to the overall market.