Global: Consultation on including listed funds that hold “real assets” in GICS closing

Why should I read this?

The consultation launched by the MSCI and S&P Dow Jones Indices (the Indices) to potentially change the Global Industry Classification Standard (GICS) structure closes tomorrow.

One of the proposed changes is to classify listed investment companies that invest in or operate real assets (infrastructure, renewables, property and private equity) by their underlying assets. This proposal is in acknowledgement of the fact that listed investment vehicles have grown significantly in scale and market relevance across global capital markets. 

If the proposal is adopted, this would result in such listed investment companies being eligible for GICS classification for the first time. 

Listed investment companies investing in traditional financial assets, such as equities, will remain ineligible for GICS classification – although the Indices are open to receive feedback as to whether such companies should remain ineligible.

The Indices have also consulted on whether or not listed investment vehicles that are significantly diversified across three or more GICS sectors, none of which contributes the majority of revenues or earnings, be classified in the Multi-Sector Holdings Sub-Industry under the Financials Sector.

Sarah Burnside, Partner and Head of Listed Funds at Eversheds Sutherland comments: 

“Improving the visibility of listed investment companies investing in real assets to analysts and investors would be a very welcome commercial development. It should ease the flow of capital into these vehicles and help to level the playing field between these companies and comparable operating businesses.”

Next steps

You can comment on the Indices proposals via their online survey or directly until Friday 30 October when the consultation closes. Links to do so can be found on page 3 of the consultation.

Any changes and associated timeline for implementation are expected to be published in November 2026.

How Eversheds Sutherland can help

Eversheds Sutherland is a leading legal adviser to the UK investment funds sector, including investment trusts, REITs and VCTs listed on UK markets. Our team advises boards, AIFMs, portfolio managers administrators and depositaries on all lifecycle matters relating to these funds.