Building a sector universe before you ask for a rotation map
Rotation analysis is only as clear as the taxonomy you hand over — SET industry groups, GICS, or a custom list each change the story.
Clients sometimes arrive asking for “the sectors.” Markets do not share one permanent shelf of labels. SET industry groupings, GICS, and a family office’s internal buckets can disagree on where a holding belongs.
Lock the labels early
Before relative strength rankings mean anything, agree which map you will use for the engagement. Changing taxonomy mid-brief forces a rebuild and muddies committee memory when you compare to last quarter’s deck.
Practical tips from intake
- Prefer the taxonomy your middle office already uses for reporting.
- Note exceptions once (for example, a holding you insist on tagging as industrial rather than consumer).
- Do not mix two systems in one weight table without a reconciliation column.
A Sector Rotation Briefing that starts with a clean universe lock spends less time arguing labels and more time on leadership durability.