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General SENS Submitter Company - Follow Up Market Note 20201019 Changes to ICB & SA Sector Indices

Release Date: 19/10/2020 17:15
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Follow Up Market Note – 20201019 Changes to ICB & SA Sector Indices

                Follow Up Market Note: Changes to ICB and SA Sector Indices
                                         FTSE/JSE Africa Index Series
                                                   19 October 2020



1.    Introduction
      In December 2016 and March 2018, FTSE/JSE published a Market Consultation and Market Note respectively, to
      introduce the market to the index changes that can be expected as a result of the FTSE Russell Industry
      Classification Benchmark (ICB) changes. FTSE Russell also published several documents on the enhanced ICB
      changes, including how the current structure will be mapped to the new ICB structure. A comprehensive overview
      of the changes can be found on the JSE and FTSE Russell websites.


      The purpose of this Market Note is to provide a more detailed overview of the current ICB Index offerings together
      with the new and enhanced ICB Indices that will be available from the effective date.


2.    Current Index Offering


2.1   FTSE/JSE ICB Industry Indices
      The ICB system uses a four-tier structure with Industry, Supersector, Sector, and Subsector levels. With the current
      ICB structure, there are 10 ICB Industries. Similarly, FTSE/JSE offers 10 ICB Industry Indices and 10 SWIX variants
      of the Indices. The full structure, in its current form, can be accessed here. The Industry Index code naming
      convention is as follows:

       Character                        ALSI Index Code Convention                  SWIX Index Code Convention
       First character                  The letter J                                The letter J
       Second character                 The number 5                                The letter S
       Third character                  The first number of the ICB Industry code   The letter I
       Fourth character                 The number zero                             The first number of the ICB Industry code
      Table 1: ICB Industry Indices naming convention


      These ICB Industry Indices consist of all the companies in the All Share Index that belong to a specific ICB Industry.
      It is therefore possible that at any given period, one or more of the ICB Industry Indices will be empty should there
      be no All Share Index constituents that belong to a particular ICB industry. In this case, it has always been
      FTSE/JSE’s policy to keep the index level constant and resume index calculations once the Industry index is
      repopulated with constituents.

      The table below shows the current list of FTSE/JSE ICB Industry Indices:



       Page 1 of 13
       ICB Industry                                  Index          Index name
                                                     Code
       0001 – Oil & Gas                                   J500      FTSE/JSE Oil & Gas Index
       1000 – Basic Materials                             J510      FTSE/JSE Basic Materials Index
       2000 – Industrials                                 J520      FTSE/JSE Industrials Index
       3000 – Consumer Goods                              J530      FTSE/JSE Consumer Goods Index
       4000 – Health Care                                 J540      FTSE/JSE Health Care Index
       5000 – Consumer Services                           J550      FTSE/JSE Consumer Services Index
       6000 – Telecommunications                          J560      FTSE/JSE Telecommunications Index
       7000 – Utilities                                   J570      FTSE/JSE Utilities Index
       8000 – Financials                                  J580      FTSE/JSE Financials Index
       9000 – Technology                                  J590      FTSE/JSE Technology Index
      Table 2: ICB Industry Indices


      The table below shows the list of SWIX ICB Industry Indices:

       ICB Industry                                  SWIX Index Code            SWIX Index name
       0001 – Oil & Gas                                          JSI0           FTSE/JSE SWIX Oil & Gas Index
       1000 – Basic Materials                                    JSI1           FTSE/JSE SWIX Basic Materials Index
       2000 – Industrials                                        JSI2           FTSE/JSE SWIX Industrials Index
       3000 – Consumer Goods                                     JSI3           FTSE/JSE SWIX Consumer Goods Index
       4000 – Health Care                                        JSI4           FTSE/JSE SWIX Health Care Index
       5000 – Consumer Services                                  JSI5           FTSE/JSE SWIX Consumer Services Index
       6000 – Telecommunications                                 JSI6           FTSE/JSE SWIX Telecommunications Index
       7000 – Utilities                                          JSI7           FTSE/JSE SWIX Utilities Index
       8000 – Financials                                         JSI8           FTSE/JSE SWIX Financials Index
       9000 – Technology                                         JSI9           FTSE/JSE SWIX Technology Index
      Table 3: SWIX ICB Industry Indices


2.2   FTSE/JSE ICB Sector Indices
      The next level is the Supersector level, however FTSE/JSE does not offer any Indices at the Supersector level. At
      sector level, there are currently 40 ICB sectors. FTSE/JSE offers 39 ICB Sector Indices. Per section 4.1.5 of the
      FTSE/JSE Ground Rules, companies that are classified as Non-Equity Investment Instruments (ICB sector 8990) are
      not eligible for index inclusion therefore there is no ICB sector index for this sector.

      The index code naming convention is as follows:

       Character                           ALSI Index Code Convention                                SWIX Index Code Convention
       First character                     The letter J                                              The letter J
       Second character                    The first number of the ICB Sector code                   The letter S
       Third character                     The second number of the ICB Sector code                  The first number of the ICB sector code
       Fourth character                    The third number of the ICB Sector code                   The numbers 1-9, in chronological
                                                                                                     order, based on the order of the ICB sector code
      Table 4: ICB Sector Indices naming convention


      The table below shows the list of ICB Sector Indices:




       Page 2 of 13
 ICB Sector                                      SWIX Index    SWIX Index name
                                                 Code
 0530 – Oil & Gas Producers                             J053   FTSE/JSE Oil & Gas Producers Index
 0570 – Oil Equipment, Services & Distribution          J057   FTSE/JSE Oil Equipment, Services & Distribution Index
 0580 – Alternative Energy                              J058   FTSE/JSE Alternative Energy Index
 1350 – Chemicals                                       J135   FTSE/JSE Chemicals Index
 1730 – Forestry & Paper                                J173   FTSE/JSE Forestry & Paper Index
 1750 – Industrial Metals & Mining                      J175   FTSE/JSE Industrial Metals & Mining Index
 1770 – Mining                                          J177   FTSE/JSE Mining Index
 2350 – Construction & Materials                        J235   FTSE/JSE Construction & Materials Index
 2710 – Aerospace & Defense                             J271   FTSE/JSE Aerospace & Defense Index
 2720 – General Industrials                             J272   FTSE/JSE General Industrials Index
 2730 – Electronic & Electrical Equipment               J273   FTSE/JSE Electronic & Electrical Equipment Index
 2750 – Industrial Engineering                          J275   FTSE/JSE Industrial Engineering Index
 2770 – Industrial Transportation                       J277   FTSE/JSE Industrial Transportation Index
 2790 – Support Services                                J279   FTSE/JSE Support Services Index
 3350 – Automobiles & Parts                             J335   FTSE/JSE Automobiles & Parts Index
 3530 – Beverages                                       J353   FTSE/JSE Beverages Index
 3570 – Food Producers                                  J357   FTSE/JSE Food Producers Index
 3720 – Household Goods & Home Construction             J372   FTSE/JSE Household Goods & Home Construction Index
 3740 – Leisure Goods                                   J374   FTSE/JSE Leisure Goods Index
 3760 – Personal Goods                                  J376   FTSE/JSE Personal Goods Index
 3780 – Tobacco                                         J378   FTSE/JSE Tobacco Index
 4530 – Health Care Equipment & Services                J453   FTSE/JSE Health Care Equipment & Services Index
 4570 – Pharmaceuticals & Biotechnology                 J457   FTSE/JSE Pharmaceuticals & Biotechnology Index
 5330 – Food & Drug Retailers                           J533   FTSE/JSE Food & Drug Retailers Index
 5370 – General Retailers                               J537   FTSE/JSE General Retailers Index
 5550 – Media                                           J555   FTSE/JSE Media Index
 5750 – Travel & Leisure                                J575   FTSE/JSE Travel & Leisure Index
 6530 – Fixed Line Telecommunications                   J653   FTSE/JSE Fixed Line Telecommunications Index
 6570 – Mobile Telecommunications                       J657   FTSE/JSE Mobile Telecommunications Index
 7530 – Electricity                                     J753   FTSE/JSE Electricity Index
 7570 – Gas, Water & Multi-utilities                    J757   FTSE/JSE Gas, Water & Multi-utilities Index
 8350 – Banks                                           J835   FTSE/JSE Banks Index
 8530 – Nonlife Insurance                               J853   FTSE/JSE Nonlife Insurance Index
 8570 – Life Insurance                                  J857   FTSE/JSE Life Insurance Index
 8630 – Real Estate Investment & Services               J863   FTSE/JSE Real Estate Investment & Services Index
 8670 – Real Estate Investment Trusts                   J867   FTSE/JSE Real Estate Investment Trusts Index
 8770 – Financial Services                              J877   FTSE/JSE Financial Services Index
 8980 – Equity Investment Instruments                   J898   FTSE/JSE Equity Investment Instruments Index
 8990 – Non-Equity Investment Instruments
 9530 – Software & Computer Services                    J953   FTSE/JSE Software & Computer Services Index
 9570 – Technology Hardware & Equipment                 J957   FTSE/JSE Technology Hardware & Equipment Index
Table 5: ICB Sector Indices




 Page 3 of 13
The next table shows the list of SWIX ICB Sector Indices:

 ICB Sector                                      SWIX Index Code   SWIX Index name
 0530 – Oil & Gas Producers                            JS01        FTSE/JSE SWIX Oil & Gas Producers Index
 0570 – Oil Equipment, Services & Distribution         JS02        FTSE/JSE SWIX Oil Equipment, Services & Distribution Index
 0580 – Alternative Energy                             JS03        FTSE/JSE SWIX Alternative Energy Index
 1350 – Chemicals                                      JS11        FTSE/JSE SWIX Chemicals Index
 1730 – Forestry & Paper                               JS12        FTSE/JSE SWIX Forestry & Paper Index
 1750 – Industrial Metals & Mining                     JS13        FTSE/JSE SWIX Industrial Metals & Mining Index
 1770 – Mining                                         JS14        FTSE/JSE SWIX Mining Index
 2350 – Construction & Materials                       JS21        FTSE/JSE SWIX Construction & Materials Index
 2710 – Aerospace & Defense                            JS22        FTSE/JSE SWIX Aerospace & Defense Index
 2720 – General Industrials                            JS23        FTSE/JSE SWIX General Industrials Index
 2730 – Electronic & Electrical Equipment              JS24        FTSE/JSE SWIX Electronic & Electrical Equipment Index
 2750 – Industrial Engineering                         JS25        FTSE/JSE SWIX Industrial Engineering Index
 2770 – Industrial Transportation                      JS26        FTSE/JSE SWIX Industrial Transportation Index
 2790 – Support Services                               JS27        FTSE/JSE SWIX Support Services Index
 3350 – Automobiles & Parts                            JS31        FTSE/JSE SWIX Automobiles & Parts Index
 3530 – Beverages                                      JS32        FTSE/JSE SWIX Beverages Index
 3570 – Food Producers                                 JS33        FTSE/JSE SWIX Food Producers Index
 3720 – Household Goods & Home Construction            JS34        FTSE/JSE SWIX Household Goods & Home Construction Index
 3740 – Leisure Goods                                  JS35        FTSE/JSE SWIX Leisure Goods Index
 3760 – Personal Goods                                 JS36        FTSE/JSE SWIX Personal Goods Index
 3780 – Tobacco                                        JS37        FTSE/JSE SWIX Tobacco Index
 4530 – Health Care Equipment & Services               JS41        FTSE/JSE SWIX Health Care Equipment & Services Index
 4570 – Pharmaceuticals & Biotechnology                JS42        FTSE/JSE SWIX Pharmaceuticals & Biotechnology Index
 5330 – Food & Drug Retailers                          JS51        FTSE/JSE SWIX Food & Drug Retailers Index
 5370 – General Retailers                              JS52        FTSE/JSE SWIX General Retailers Index
 5550 – Media                                          JS53        FTSE/JSE SWIX Media Index
 5750 – Travel & Leisure                               JS54        FTSE/JSE SWIX Travel & Leisure Index
 6530 – Fixed Line Telecommunications                  JS61        FTSE/JSE SWIX Fixed Line Telecommunications Index
 6570 – Mobile Telecommunications                      JS62        FTSE/JSE SWIX Mobile Telecommunications Index
 7530 – Electricity                                    JS71        FTSE/JSE SWIX Electricity Index
 7570 – Gas, Water & Multi-utilities                   JS72        FTSE/JSE SWIX Gas, Water & Multi-utilities Index
 8350 – Banks                                          JS81        FTSE/JSE SWIX Banks Index
 8530 – Nonlife Insurance                              JS82        FTSE/JSE SWIX Nonlife Insurance Index
 8570 – Life Insurance                                 JS83        FTSE/JSE SWIX Life Insurance Index
 8630 – Real Estate Investment & Services              JS84        FTSE/JSE SWIX Real Estate Investment & Services Index
 8670 – Real Estate Investment Trusts                  JS85        FTSE/JSE SWIX Real Estate Investment Trusts Index
 8770 – Financial Services                             JS86        FTSE/JSE SWIX Financial Services Index
 8980 – Equity Investment Instruments                  JS87        FTSE/JSE SWIX Equity Investment Instruments Index
 8990 – Non-Equity Investment Instruments
 9530 – Software & Computer Services                   JS91        FTSE/JSE SWIX Software & Computer Services Index
 9570 – Technology Hardware & Equipment                JS92        FTSE/JSE SWIX Technology Hardware & Equipment Index
Table 6: SWIX ICB Sector Indices




 Page 4 of 13
2.3   FTSE/JSE ICB Subsector Indices
      The final level of the ICB classification system is the Subsector level. There are currently 114 subsectors however
      FTSE/JSE only offers five subsector Indices and no SWIX variants of these ICB Subsector Indices. The five subsector
      Indices were created as a result of market demand, for subsector Indices within the Mining Sector.

       ALSI Character                    ALSI Index Code Convention
       First character                   The letter J
       Second character                  The number 1
       Third character                   The number 5
       Fourth character                  The numbers 0-4
                                        order, based
      Table 7: Subsector Indices Naming Convention on the order of the ICB sector code


       ICB Subsector                               Index       Index name
                                                   Code
       1777 – Gold Mining                               J150   FTSE/JSE Gold Mining Index
       1771 – Coal                                      J151   FTSE/JSE Coal Mining Index
       1773 – Diamonds & Gemstones                      J152   FTSE/JSE Diamonds & Gemstones Index
       1779 – Platinum & Precious Metals                J153   FTSE/JSE Platinum & Precious Metals Index
       1775 – General Mining                            J154   FTSE/JSE General Mining Index
      Table 8: ICB Subsector Indices


2.4   FTSE/JSE SA Sector Indices
      There are 12 SA Sector Indices based on the current ICB structure. The constituents are selected by All Share
      inclusion and their ICB Industry(ies) as follows:

           *       SA Resources: ICB Industries 0001 (Oil & Gas) and 1000 (Basic Materials)
           *       SA Financials: ICB Industry 8000 (Financials)
           *       SA Industrials: All remaining companies

      Three of the SA Sector Indices are tradable, namely the J210, J211 and J213. FTSE/JSE also offers SWIX Variants
      of the SA Sector Indices, except for the J310, J311, J3EQ, J4EQ and J5EQ Indices. The SA Sector Indices are listed
      in the table below:

       Index Code         Index name                                        SWIX Index      SWIX Index name
                                                                            Code
            J210          FTSE/JSE Resources 10 Index                           JSZ0        FTSE/JSE SWIX Resources 10 Index
            J211          FTSE/JSE Industrials 25 Index                         JSZ1        FTSE/JSE SWIX Industrials 25 Index
            J212          FTSE/JSE Financials 15 Index                          JSZ2        FTSE/JSE SWIX Financials 15 Index
            J213          FTSE/JSE Financials and Industrials 30 Index          JSZ3        FTSE/JSE SWIX Financials and Industrials 30 Index
            J250          FTSE/JSE SA Financials and Industrials Index          JSZ7        FTSE/JSE SWIX SA Financials and Industrials Index
            J257          FTSE/JSE SA Industrials Index                         JSZ5        FTSE/JSE SWIX SA Industrials Index
            J258          FTSE/JSE SA Resources Index                           JSZ4        FTSE/JSE SWIX SA Resources Index
            J310          FTSE/JSE Capped Resources 10 Index
            J3EQ          FTSE/JSE Equally Weighted Resources 10 Index
            J4EQ          FTSE/JSE Equally Weighted Financials 15 Index
            J580          FTSE/JSE Financials Index                             JSZ6        FTSE/JSE SWIX Financials Index
            J5EQ          FTSE/JSE Equally Weighted Industrials 25 Index
      Table 9: SA Sector Indices


       Page 5 of 13
3.    Enhanced ICB offering
      The enhanced ICB structure will come into effect after market close on 19 March 2021, with the introduction of
      some new Industries, Super sectors, Sectors and Subsectors. At Industry level, there will be 11 Industries, one up
      from 10. At Supersector level, there will be 20 Supersectors, one up from 19. At Sector level, there will be 45
      Sectors, five up from 40 and lastly at Subsector level, there will be 173 Subsectors, an increase of 59 from the
      current Subsectors.

      FTSE/JSE will offer new and enhanced ICB Indices that tie up with the ICB enhanced structure. The ICB Indices will
      only be introduced at Industry and Sector levels therefore the current FTSE/JSE Subsector Indices will be
      discontinued. There will be a change in the length of the ICB index codes, from four to six characters, as a result
      of the change in the length and numbering convention of the enhanced ICB codes. At Industry level, the ICB codes
      will decrease from four numbers to two numbers and at sector level, the index codes will increase from four
      numbers to six numbers. The Supersector level will maintain the four digit ICB code with the Subsector codes
      increasing from four to eight numbers. Where clients have systems in place that are hard coded with a maximum
      of four characters for Index odes, FTSE/JSE encourages clients to take note of this change and adjust these
      character limits accordingly.

      The SA Sector Indices will remain the same, that is, the index codes and index names will not change. The only
      change will be the addition of “SA” to the FTSE/JSE Financials Index at SA sector level. This is to ensure that the
      distinction between the Financials Index at Industry Level and SA Sector level is clear. The SA sector level Financials
      Index (FTSE/JSE SA Financials Index) will therefore contain Real Estate companies as per the legacy ICB mapping
      however at Industry level, the Financials Index will exclude Real Estate companies.

3.1   Enhanced FTSE/JSE ICB Industry Indices
      The table below shows the index code naming convention that will be followed for the introduction of the new
      and enhanced ICB Industry Indices:

       Character                      ALSI Index Code Convention                             SWIX Index Code Convention
       First character                The letter J                                           The letter J
       Second character               The letter I                                           The letter W
       Third character                The number zero                                        The number zero
       Fourth character               The number zero                                        The number zero
       Fifth character                The first number of the ICB Industry code              The first number of the ICB Industry code
       Sixth character                The second number of the ICB Industry code             The second number of the ICB Industry
      Table 10: New ICB Industry Indices Naming Convention                                   code


      The next table shows the ICB industries that will come into effect in March 2021.

       ICB Industry                    Index         Index name
                                       Code
       10 – Technology                  JI0010       FTSE/JSE Technology Index
       15 – Telecommunications          JI0015       FTSE/JSE Telecommunications Index
       20 – Health Care                 JI0020       FTSE/JSE Health Care Index
       30 – Financials                  JI0030       FTSE/JSE Financials Index
       35 – Real Estate                 JI0035       FTSE/JSE Real Estate Index
       40 – Consumer Discretionary      JI0040       FTSE/JSE Consumer Discretionary Index

       Page 6 of 13
       45 – Consumer Staples             JI0045        FTSE/JSE Consumer Staples Index
       50 – Industrials                  JI0050        FTSE/JSE Industrials Index
       55 – Basic Materials              JI0055        FTSE/JSE Basic Materials Index
       60 – Energy                       JI0060        FTSE/JSE Energy Index
       65 – Utilities                    JI0065        FTSE/JSE Utilities Index
      Table 11: March 2021 ICB Industry Indices


      FTSE/JSE will also offer SWIX variants of the Industry Indices as follows:

       ICB Industry                            Index         Index name
                                               Code
       10 – Technology                         JW0010        FTSE/JSE SWIX Technology Index

       15 – Telecommunications                 JW0015        FTSE/JSE SWIX Telecommunications Index

       20 – Health Care                        JW0020        FTSE/JSE SWIX Health Care Index

       30 – Financials                         JW0030        FTSE/JSE SWIX Financials Index

       35 – Real Estate                        JW0035        FTSE/JSE SWIX Real Estate Index

       40 – Consumer Discretionary             JW0040        FTSE/JSE SWIX Consumer Discretionary Index

       45 – Consumer Staples                   JW0045        FTSE/JSE SWIX Consumer Staples Index

       50 – Industrials                        JW0050        FTSE/JSE SWIX Industrials Index

       55 – Basic Materials                    JW0055        FTSE/JSE SWIX Basic Materials Index

       60 – Energy                             JW0060        FTSE/JSE SWIX Energy Index

       65 – Utilities                          JW0065        FTSE/JSE SWIX Utilities Index

      Table 12: March 2021 SWIX ICB Industry Indices


3.2   Enhanced FTSE/JSE ICB Sector Indices
      At Sector level, the enhanced ICB structure will have 45 sectors and FTSE/JSE will offer 44 Indices. With the current
      structure, ICB sector 8990 (Non-equity Investment) is not eligible for index inclusion. This sector will be mapped,
      on a one-for-one basis, to sector 302050 (Open End and Miscellaneous Investment Vehicles) and will continue to
      be ineligible for index inclusion. The next three tables will show the new ICB Sector Indices naming convention,
      the ICB Sector Indices and their SWIX variants.

       Character                        ALSI Index Code Convention                              SWIX Index Code Convention
       First character                  The letter J                                            The letter J
       Second character                 The letter S                                            The letter X
       Third character                  The first number of the ICB Sector code                 The first number of the ICB Sector code
       Fourth character                 The second number of the ICB Sector code                The second number of the ICB Sector code
       Fifth character                  The third number of the ICB Sector code                 The third number of the ICB Sector code
       Sixth character                  The fifth number of the ICB Sector code                 The fifth number of the ICB Sector code
      Table 13: New ICB Sector Indices Naming Convention


       ICB Sector                                                       Index Code        Index name
       101010 – Software & Computer Services                                JS1011        FTSE/JSE Software & Computer Services Index
       101020 – Technology Hardware & Equipment                             JS1012        FTSE/JSE Technology Hardware & Equipment Index
       151010 – Telecommunications Equipment                                JS1511        FTSE/JSE Telecommunications Equipment Index
       151020 – Telecommunications Service Providers                        JS1512        FTSE/JSE Telecommunications Service Providers Index
       201010 – Health Care Providers                                       JS2011        FTSE/JSE Health Care Providers Index

       Page 7 of 13
 201020 – Medical Equipment & Services                        JS2012    FTSE/JSE Medical Equipment & Services Index
 201030 – Pharmaceuticals & Biotechnology                     JS2013    FTSE/JSE Pharmaceuticals & Biotechnology Index
 301010 – Banks                                               JS3011    FTSE/JSE Banks Index
 302010 – Finance & Credit Services                           JS3021    FTSE/JSE Finance & Credit Services Index
 302020 – Investment Banking & Brokerage Services             JS3022    FTSE/JSE Investment Banking & Brokerage Services Index
 302030 – Mortgage Real Estate Investment Trusts              JS3023    FTSE/JSE Mortgage Real Estate Investment Trusts Index
 302040 – Closed End Investments                              JS3024    FTSE/JSE Closed End Investments Index
 302050 – Open End and Miscellaneous Investment Vehicles
 303010 – Life Insurance                                      JS3031    FTSE/JSE Life Insurance Index
 303020 – Nonlife Insurance                                   JS3032    FTSE/JSE Nonlife Insurance Index
 351010 – Real Estate Investment & Services Development       JS3511    FTSE/JSE Real Estate Investment & Services Development Index
 351020 – Real Estate Investment Trusts                       JS3512    FTSE/JSE Real Estate Investment Trusts Index
 401010 – Automobiles & Parts                                 JS4011    FTSE/JSE Automobiles & Parts Index
 402010 – Consumer Services                                   JS4021    FTSE/JSE Consumer Services Index
 402020 – Household Goods & Home Construction                 JS4022    FTSE/JSE Household Goods & Home Construction Index
 402030 – Leisure Goods                                       JS4023    FTSE/JSE Leisure Goods Index
 402040 – Personal Goods                                      JS4024    FTSE/JSE Personal Goods Index
 403010 – Media                                               JS4031    FTSE/JSE Media Index
 404010 – Retailers                                           JS4041    FTSE/JSE Retailers Index
 405010 – Travel & Leisure                                    JS4051    FTSE/JSE Travel & Leisure Index
 451010 – Beverages                                           JS4511    FTSE/JSE Beverages Index
 451020 – Food Producers                                      JS4512    FTSE/JSE Food Producers Index
 451030 – Tobacco                                             JS4513    FTSE/JSE Tobacco Index
 452010 – Personal Care, Drug & Grocery Stores                JS4521    FTSE/JSE Personal Care, Drug & Grocery Stores Index
 501010 – Construction & Materials                            JS5011    FTSE/JSE Construction & Materials Index
 502010 – Aerospace & Defense                                 JS5021    FTSE/JSE Aerospace & Defense Index
 502020 – Electronic & Electrical Equipment                   JS5022    FTSE/JSE Electronic & Electrical Equipment Index
 502030 – General Industrials                                 JS5023    FTSE/JSE General Industrials Index
 502040 – Industrial Engineering                              JS5024    FTSE/JSE Industrial Engineering Index
 502050 – Industrial Support Services                         JS5025    FTSE/JSE Industrial Support Services Index
 502060 – Industrial Transportation                           JS5026    FTSE/JSE Industrial Transportation Index
 551010 – Industrial Materials                                JS5511    FTSE/JSE Industrial Materials Index
 551020 – Industrial Metals & Mining                          JS5512    FTSE/JSE Industrial Metals & Mining Index
 551030 – Precious Metals & Mining                            JS5513    FTSE/JSE Precious Metals & Mining Index
 552010 – Chemicals                                           JS5521    FTSE/JSE Chemicals Index
 601010 – Oil, Gas and Coal                                   JS6011    FTSE/JSE Oil, Gas and Coal Index
 601020 – Alternative Energy                                  JS6012    FTSE/JSE Alternative Energy Index
 651010 – Electricity                                         JS6511    FTSE/JSE Electricity Index
 651020 – Gas, Water & Multi-utilities                        JS6512    FTSE/JSE Gas, Water & Multi-utilities Index
 651030 – Waste & Disposal Services                           JS6513    FTSE/JSE Waste & Disposal Services Index
Table 14: March 2021 ICB Sector Indices


 ICB Sector                                                SWIX Index   SWIX Index name
                                                           Code
 101010 – Software & Computer Services                     JX1011       FTSE/JSE SWIX Software & Computer Services Index
 101020 – Technology Hardware & Equipment                  JX1012       FTSE/JSE SWIX Technology Hardware & Equipment Index
 151010 – Telecommunications Equipment                     JX1511       FTSE/JSE SWIX Telecommunications Equipment Index
 151020 – Telecommunications Service Providers             JX1512       FTSE/JSE SWIX Telecommunications Service Providers Index


 Page 8 of 13
       201010 – Health Care Providers                            JX2011   FTSE/JSE SWIX Health Care Providers Index
       201020 – Medical Equipment & Services                     JX2012   FTSE/JSE SWIX Medical Equipment & Services Index
       201030 – Pharmaceuticals & Biotechnology                  JX2013   FTSE/JSE SWIX Pharmaceuticals & Biotechnology Index
       301010 – Banks                                            JX3011   FTSE/JSE SWIX Banks Index
       302010 – Finance & Credit Services                        JX3021   FTSE/JSE SWIX Finance & Credit Services Index
       302020 – Investment Banking & Brokerage Services          JX3022   FTSE/JSE SWIX Investment Banking & Brokerage Services Index
       302030 – Mortgage Real Estate Investment Trusts           JX3023   FTSE/JSE SWIX Mortgage Real Estate Investment Trusts Index
       302040 – Closed End Investments                           JX3024   FTSE/JSE SWIX Closed End Investments Index
       302050 – Open End and Miscellaneous Investment Vehicles
       303010 – Life Insurance                                   JX3031   FTSE/JSE SWIX Life Insurance Index
       303020 – Nonlife Insurance                                JX3032   FTSE/JSE SWIX Nonlife Insurance Index
       351010 – Real Estate Investment & Services Development    JX3511   FTSE/JSE SWIX Real Estate Investment & Services Development Index
       351020 – Real Estate Investment Trusts                    JX3512   FTSE/JSE SWIX Real Estate Investment Trusts Index
       401010 – Automobiles & Parts                              JX4011   FTSE/JSE SWIX Automobiles & Parts Index
       402010 – Consumer Services                                JX4021   FTSE/JSE SWIX Consumer Services Index
       402020 – Household Goods & Home Construction              JX4022   FTSE/JSE SWIX Household Goods & Home Construction Index
       402030 – Leisure Goods                                    JX4023   FTSE/JSE SWIX Leisure Goods Index
       402040 – Personal Goods                                   JX4024   FTSE/JSE SWIX Personal Goods Index
       403010 – Media                                            JX4031   FTSE/JSE SWIX Media Index
       404010 – Retailers                                        JX4041   FTSE/JSE SWIX Retailers Index
       405010 – Travel & Leisure                                 JX4051   FTSE/JSE SWIX Travel & Leisure Index
       451010 – Beverages                                        JX4511   FTSE/JSE SWIX Beverages Index
       451020 – Food Producers                                   JX4512   FTSE/JSE SWIX Food Producers Index
       451030 – Tobacco                                          JX4513   FTSE/JSE SWIX Tobacco Index
       452010 – Personal Care, Drug & Grocery Stores             JX4521   FTSE/JSE SWIX Personal Care, Drug & Grocery Stores Index
       501010 – Construction & Materials                         JX5011   FTSE/JSE SWIX Construction & Materials Index
       502010 – Aerospace & Defense                              JX5021   FTSE/JSE SWIX Aerospace & Defense Index
       502020 – Electronic & Electrical Equipment                JX5022   FTSE/JSE SWIX Electronic & Electrical Equipment Index
       502030 – General Industrials                              JX5023   FTSE/JSE SWIX General Industrials Index
       502040 – Industrial Engineering                           JX5024   FTSE/JSE SWIX Industrial Engineering Index
       502050 – Industrial Support Services                      JX5025   FTSE/JSE SWIX Industrial Support Services Index
       502060 – Industrial Transportation                        JX5026   FTSE/JSE SWIX Industrial Transportation Index
       551010 – Industrial Materials                             JX5511   FTSE/JSE SWIX Industrial Materials Index
       551020 – Industrial Metals & Mining                       JX5512   FTSE/JSE SWIX Industrial Metals & Mining Index
       551030 – Precious Metals & Mining                         JX5513   FTSE/JSE SWIX Precious Metals & Mining Index
       552010 – Chemicals                                        JX5521   FTSE/JSE SWIX Chemicals Index
       601010 – Oil, Gas and Coal                                JX6011   FTSE/JSE SWIX Oil, Gas and Coal Index
       601020 – Alternative Energy                               JX6012   FTSE/JSE SWIX Alternative Energy Index
       651010 – Electricity                                      JX6511   FTSE/JSE SWIX Electricity Index
       651020 – Gas, Water & Multi-utilities                     JX6512   FTSE/JSE SWIX Gas, Water & Multi-utilities Index
       651030 – Waste & Disposal Services                        JX6513   FTSE/JSE SWIX Waste & Disposal Services Index
      Table 15: March 2021 SWIX ICB Sector Indices


3.3   SA Sector Indices
      The SA Sector Indices will keep their current form and structure. In addition to adding the word “SA” to the
      Financial Index, the selection criteria will be by All Share index constituency and the below ICB industry code(s):




       Page 9 of 13
           *    SA Resources: ICB Industries 55 (Basic Materials) and 60 (Energy)
           *    SA Financials: ICB Industries 30 (Financials) and 35 (Real Estate)
           *    SA Industrials: All remaining companies

3.4   Decommissioning of FTSE/JSE ICB Subsector Indices
      With the enhanced ICB structure, FTSE/JSE will no longer offer ICB indices at the subsector level. The five subsector
      indices as listed below will therefore be decommissioned after market close on 19 March 2021.

       Index       Index name
       Code
         J150      FTSE/JSE Gold Mining Index
         J151      FTSE/JSE Coal Mining Index
         J152      FTSE/JSE Diamonds & Gemstones Mining Index
         J153      FTSE/JSE Platinum & Precious Metals Mining Index
         J154      FTSE/JSE General Mining Index
      Table 16: ICB subsector indices to be decommissioned in March 2020


4.    Industry and Sector Level Index Mapping
      FTSE Russell’s approach to migration is to link the legacy to new ICB Indices. With the structure changes, almost
      all ICB Indices have been mapped to the relevant legacy Indices where the majority of the constituents have
      originated. Where the new ICB index is mapped on a One-to-One basis to the legacy ICB index, there will be no
      back-cast historical data calculated; the new Index will be a continuation of the legacy Index.

      At Industry Level, there will be name changes to some Industry Indices and the introduction of the FTSE/JSE Real
      Estate Index. This stems from the Real Estate Supersector moving up one ICB level to the Industry level with the
      enhanced structure. The remainder of the industry mapping is on a One-to-One basis at the same ICB level.

      At Sector level, the bulk of the ICB Indices have a One-to-One mapping to the legacy ICB sector Indices. A few
      subsectors will move up one ICB level to the sector level therefore there will be additional ICB sector indices as a
      result of this move.

      The below table shows the index mapping at Industry and sector Level. Where the current index code / name is
      bold and denoted by the letters “TBC”, this represents a legacy index that does not exist at the current ICB level.
      This is due to the mapping convention arising from different ICB levels, i.e. from Supersector to Industry Level and
      from Subsector to Sector Level. FTSE/JSE will confirm, at a later date, what the index mapping will be for these
      Indices




       Page 10 of 13
Current Index                                 Current SWIX Index                                       New/Enhanced Index                               New/Enhanced SWIX Index
Index                                                                                           ICB    Index                                            Index
Code    Shortened Index Name                  Index Code   Shortened Index Name                 Code   Code      Shortened Index Name                   Code      Shortened Index Name                     ICB Code

 J590   Technology                               JSI9      SWIX Technology                      9000    JI0010   Technology                              JW0010   SWIX Technology                             10
 J560   Telecommunications                       JSI6      SWIX Telecommunications              6000    JI0015   Telecommunications                      JW0015   SWIX Telecommunications                     15
 J540   Health Care                              JSI4      SWIX Health Care                     4000    JI0020   Health Care                             JW0020   Health Care                                 20
 J580   Financials                               JSI8      SWIX Financials                      8000    JI0030   Financials                              JW0030   Financials                                  30
 TBC    TBC                                      TBC       TBC                                  8600    JI0035   Real Estate                             JW0035   Real Estate                                 35
 J530   Consumer Goods                           JSI5      SWIX Consumer Goods                  3000    JI0040   Consumer Discretionary                  JW0040   Consumer Discretionary                      40
 J550   Consumer Services                        JSI3      SWIX Consumer Services               5000    JI0045   Consumer Staples                        JW0045   Consumer Staples                            45
 J520   Industrials                              JSI2      SWIX Industrials                     2000    JI0050   Industrials                             JW0050   Industrials                                 50
 J510   Basic Materials                          JSI1      SWIX Basic Materials                 1000    JI0055   Basic Materials                         JW0055   Basic Materials                             55
 J500   Oil & Gas                                JSI0      SWIX Oil & Gas                       0001    JI0060   Energy                                  JW0060   Energy                                      60
 J570   Utilities                                JSI7      SWIX Utilities                       7000    JI0065   Utilities                               JW0065   Utilities                                   65
 J953   Software & Computer Services             JS91      SWIX Software & Computer Services    9530   JS1012    Software & Computer Services            JX1011   SWIX Software & Computer Services         101010
 J957   Technology Hardware & Equipment          JS92      SWIX Technology Hardware &           9570   JS6513    Technology Hardware & Equipment         JX1012   SWIX Technology Hardware & Equipment      101020
                                                           Equipment
 TBC    TBC                                      TBC       TBC                                  9578   JS5512    Telecommunications Equipment            JX1511   SWIX Telecommunications Equipment         151010
 J653   Fixed Line Telecommunications            JS61      SWIX Fixed Line Telecommunications   6530   JS1512    Telecommunications Service Providers    JX1512   SWIX Telecommunications Service           151020
                                                                                                                                                                  Providers
 J657   Mobile Telecommunications                JS62      SWIX Mobile Telecommunications       6570   JS6511    Telecommunications Service Providers    JX1512   SWIX Telecommunications Service           151020
                                                                                                                                                                  Providers
 J453   Health Care Equipment & Services         JS41      SWIX Health Care Equipment &         4530   JS4021    Health Care Providers                   JX2011   SWIX Health Care Providers                201010
                                                           Services
 J453   Health Care Equipment & Services         JS41      SWIX Health Care Equipment &         4530   JS3021    Medical Equipment & Services            JX2012   SWIX Medical Equipment & Services         201020
                                                           Services
 J457   Pharmaceuticals & Biotechnology          JS42      SWIX Pharmaceuticals &               4570   JS4051    Pharmaceuticals & Biotechnology         JX2013   SWIX Pharmaceuticals & Biotechnology      201030
                                                           Biotechnology
 J835   Banks                                    JS81      SWIX Banks                           8350   JS3032    Banks                                   JX3011   SWIX Banks                                301010
 J877   Financial Services                       JS86      SWIX Financial Services              8770   JS3022    Finance & Credit Services               JX3021   SWIX Finance & Credit Services            302010
 J877   Financial Services                       JS86      SWIX Financial Services              8770   JS6011    Investment Banking & Brokerage          JX3022   SWIX Investment Banking & Brokerage       302020
                                                                                                                 Services                                         Services
 TBC    TBC                                      TBC       TBC                                  8676   JS1511    Mortgage Real Estate Investment         JX3023   SWIX Mortgage Real Estate Investment      302030
                                                                                                                 Trusts                                           Trusts
 J898   Equity Investment Instruments            JS87      SWIX Equity Investment Instruments   8980   JS1011    Equity Investment Instruments           JX3024   SWIX Equity Investment Instruments        302040
 J857   Life Insurance                           JS83      SWIX Life Insurance                  8570   JS3511    Life Insurance                          JX3031   SWIX Life Insurance                       303010
 J853   Nonlife Insurance                        JS82      SWIX Nonlife Insurance               8530   JS3031    Nonlife Insurance                       JX3032   SWIX Nonlife Insurance                    303020
 J863   Real Estate Investment & Services        JS84      SWIX Real Estate Investment &        8630   JS3512    Real Estate Investment & Services       JX3511   SWIX Real Estate Investment & Services    351010
                                                           Services                                              Development                                      Development
 J867   Real Estate Investment Trusts            JS85      SWIX Real Estate Investment Trusts   8670   JS3024    Real Estate Investment Trusts           JX3512   SWIX Real Estate Investment Trusts        351020
 J335   Automobiles & Parts                      JS31      SWIX Automobiles & Parts             3350   JS4022    Automobiles & Parts                     JX4011   SWIX Automobiles & Parts                  401010
 J537   General Retailers                        JS53      SWIX General Retailers               5370   JS4041    Consumer Services                       JX4021   SWIX Consumer Services                    402010
 J372   Household Goods & Home Construction      JS34      SWIX Household Goods & Home          3720   JS2013    Household Goods & Home                  JX4022   SWIX Household Goods & Home               402020
                                                           Construction                                          Construction                                     Construction

                          Page 11 of 13
 Current Index                                      Current SWIX Index                                      New/Enhanced Index                              New/Enhanced SWIX Index
 Index                                                                                               ICB    Index                                           Index
 Code      Shortened Index Name                     Index Code   Shortened Index Name                Code   Code     Shortened Index Name                   Code      Shortened Index Name                     ICB Code

  J374     Leisure Goods                               JS35      SWIX Leisure Goods                  3740   JS4024   Leisure Goods                           JX4023   SWIX Leisure Goods                        402030
  J376     Personal Goods                              JS36      SWIX Personal Goods                 3760   JS4513   Personal Goods                          JX4024   SWIX Personal Goods                       402040
  J555     Media                                       JS54      SWIX Media                          5550   JS1512   Media                                   JX4031   SWIX Media                                403010
  J537     General Retailers                           JS53      SWIX General Retailers              5370   JS2012   Retailers                               JX4041   SWIX Retailers                            404010
  J575     Travel & Leisure                            JS55      SWIX Travel & Leisure               5750   JS6512   Travel & Leisure                        JX4051   SWIX Travel & Leisure                     405010
  J353     Beverages                                   JS32      SWIX Beverages                      3530   JS4512   Beverages                               JX4511   SWIX Beverages                            451010
  J357     Food Producers                              JS33      SWIX Food Producers                 3570   JS4023   Food Producers                          JX4512   SWIX Food Producers                       451020
  J378     Tobacco                                     JS37      SWIX Tobacco                        3780   JS4521   Tobacco                                 JX4513   SWIX Tobacco                              451030
  J533     Food & Drug Retailers                       JS52      SWIX Food & Drug Retailers          5330   JS4031   Personal Care, Drug & Grocery Stores    JX4521   SWIX Personal Care, Drug & Grocery        452010
                                                                                                                                                                      Stores
  J235     Construction & Materials                    JS21      SWIX Construction & Materials       2350   JS5021   Construction & Materials                JX5011   SWIX Construction & Materials             501010
  J271     Aerospace & Defense                         JS22      SWIX Aerospace & Defense            2710   JS5022   Aerospace & Defense                     JX5021   SWIX Aerospace & Defense                  502010
  J273     Electronic & Electrical Equipment           JS24      SWIX Electronic & Electrical        2730   JS4011   Electronic & Electrical Equipment       JX5022   SWIX Electronic & Electrical Equipment    502020
                                                                 Equipment
  J272     General Industrials                         JS23      SWIX General Industrials            2720   JS5024   General Industrials                     JX5023   SWIX General Industrials                  502030
  J275     Industrial Engineering                      JS25      SWIX Industrial Engineering         2750   JS5026   Industrial Engineering                  JX5024   SWIX Industrial Engineering               502040
  J279     Support Services                            JS27      SWIX Support Services               2790   JS4511   Industrial Support Services             JX5025   SWIX Industrial Support Services          502050
  J277     Industrial Transportation                   JS26      SWIX Industrial Transportation      2770   JS5025   Industrial Transportation               JX5026   SWIX Industrial Transportation            502060
  J173     Forestry & Paper                            JS12      SWIX Forestry & Paper               1730   JS5023   Industrial Materials                    JX5511   SWIX Industrial Materials                 551010
  J175     Industrial Metals & Mining                  JS13      SWIX Industrial Metals & Mining     1750   JS5513   Industrial Metals & Mining              JX5512   SWIX Industrial Metals & Mining           551020
  J177     Mining                                      JS14      SWIX Mining                         1770   JS5011   Precious Metals & Mining                JX5513   SWIX Precious Metals & Mining             551030
  J135     Chemicals                                   JS11      SWIX Chemicals                      1350   JS5511   Chemicals                               JX5521   SWIX Chemicals                            552010
  J055     Oil & Gas Producers                         JS01      SWIX Oil & Gas Producers            0530   JS6012   Non-Renewable Energy                    JX6011   SWIX Non-Renewable Energy                 601010
  J057     Oil Equipment, Services & Distribution      JS02      SWIX Oil Equipment, Services &      0570   JS5521   Non-Renewable Energy                    JX6011   SWIX Non-Renewable Energy                 601010
                                                                 Distribution
  J508     Alternative Energy                          JS51      SWIX Alternative Energy             0580   JS2011   Renewable Energy                        JX6012   SWIX Renewable Energy                     601020
  J753     Electricity                                 JS71      SWIX Electricity                    7530   JS3011   Electricity                             JX6511   SWIX Electricity                          651010
  J757     Gas, Water & Multi-utilities                JS72      SWIX Gas, Water & Multi-utilities   7570   JS6011   Gas, Water & Multi-utilities            JX6512   SWIX Gas, Water & Multi-utilities         651020
  TBC      TBC                                         TBC       TBC                                 2799   JS3023   Waste & Disposal Services               JX6513   SWIX Waste & Disposal Services            651030
Table 17: ICB Index mapping



                              Page 12 of 13
5.   Conclusion
     The enhanced ICB structure will affect the bulk of the ICB Indices, with the exception of the SA Sector Indices.
     There may however be knock on effects to non-ICB Indices, such as the Dividend Plus Index. This Index ranks
     constituents on a one year forward dividend yield and currently excludes companies in sectors 8670 and 8630. In
     this instance, reference will be made to the corresponding ICB sectors and sector codes in the enhanced ICB
     structure.

     The ICB changes will affect all listed instrument, however this Market Note has focused solely on the Indices
     impact. There is a large number of listed instruments and only a fraction of these are index constituents, with an
     even smaller number of these being ICB Index constituents. The JSE’s Issuer Regulation department has been
     liaising with listed companies on the sub-sector that will be most applicable for each Issuer with the enhanced ICB
     structure. It is important to note that until March 2021, the Issuer sector classifications may be subject to change.




     This document is not confidential and should be distributed as widely as possible to all stakeholders.




     Yours Sincerely,

     Indices Department




      Page 13 of 13

Date: 19-10-2020 05:15:00
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