Thomson Reuters Business Classification
Thomson Reuters Business Classification (TRBC) is the global, comprehensive, industry classification owned and operated by Thomson Reuters. A market oriented schema that tracks the primary business of corporations, TRBC helps you identify, analyze and monitor companies and industries across global markets and is the ideal tool for benchmarking, peer comparison and navigation.
Watch an introductory video presented by Geoff Horrell
TRBC Structure - Updated in 2012
Use the 5 tier classification 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. Phone & Handheld Devices
- Well defined sectors, detailed enough to focus on particular industries whilst ensuring enough constituents for effective analysis
- Consist & Relevant Methodology-Updated in 2012, major innovation with the introduction of the "Activity", an additional level of analysis to monitor niche industries
TRBC General fact sheets:
TRBC Sectors fact sheets:
(COMING SOON: Updated fact sheets incorporating 'Activities')
TRBC is developed, maintained and reviewed according to specific and transparent guidelines set forth by the TRBC team.
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.
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.
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.