Morningstar announced Tuesday that it is restructuring the classification system it uses for global equities. Equities will be classified based on the markets they serve instead of the business they conduct.
“The overarching structure of our original sector classification system was created nearly 10 years ago, and since that time the markets and our clients’ needs have evolved,” John Rekenthaler, vice president of research, said in a press release.
The new system was developed with Morningstar’s Equity Research team to "better reflect the sensitivity of a company’s operations to economic cycles."