The Markets October 5, 2010

Morningstar Changes Classification Structure for Global Equities

Morningstar has revised its classification structure for global equities based on the market a company serves rather than the type of business it conducts.
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In general, the new classification structure will have fewer Industries and Industry groups and redefined sectors and super sectors, according to a press release.   

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Under the new global equity classification structure, Morningstar first categorizes companies into one of 148 Industries, based on their largest sources of revenue and income. The industries roll up into 69 industry groups based on their market characteristics. Industry groups fold into one of 11 sectors, including Basic Materials, Communication Services, Consumer Cyclical, Consumer Defensive, Energy, Financial Services, Health Care, Industrials, Real Estate, Technology, and Utilities.   

The sectors finally roll up to one of three major economic spheres, or super sectors, which are Cyclical, Defensive, and Sensitive. The Super sectors indicate the degree to which macro-economic cycles affect sector groups.  

Morningstar said it will roll out the new classification structure in phases. All products will adopt the new Industry categories on October 15, 2010.
Products October 5, 2010

ASPPA and CEFEX Enhance Certification Program

The American Society of Pension Professionals & Actuaries (ASPPA) and the Centre for Fiduciary Excellence (CEFEX) have announced changes to their service provider certification program.
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The certification program will now be called “The ASPPA Retirement Plan Service Provider Certification” instead of the “ASPPA Recordkeeper Certification” to accurately reflect the scope of retirement plan administration within the certification program, according to the announcement.  

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Other changes include a revision to the assessment process to distinguish best practice criteria that applies only to recordkeeping firms from criteria which applies to all firms. CEFEX and ASPPA are also working to update the certification methodology to conform with recent changes to the ERISA 408(b)(2) regulation effective in July 2011—including metrics on how to verify a provider adheres to the new fee disclosure regulations.  

ASPPA and CEFEX will add three experts to the analyst team: 

  • Richard Carpenter,  President and Founder, USVI Pensions and Consulting; 
  • Chris L. Stroud,  President of Simoneaux & Stroud Consulting Services; and 
  • Laura S. Moskwa, of Laura S. Moskwa Consulting. 

 

“Each have an average of 30 years experience in the recordkeeping and administration industry and have already provided invaluable guidance to the program to date. They will now be directly engaged in providing assessment services as analysts,” said Carlos Panksep, General Manager, CEFEX, in the announcement. 

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