The European Fund Classification (EFC) system, a pan-European standard overseen by the European Fund and Asset Management Association ( Efama) has undergone expansion, now covering nearly 180,000 fund share classes across most European countries.
With this expansion, the vast majority of European funds have received an EFC classification by Efama, the European investment management industry, further solidifying the system’s role as a comprehensive resource for fund categorisation.
This latest update introduces several new fund categories, reflecting recent market developments. The EFC now includes classifications for crypto asset funds, foreign exchange funds and ultra-short bond funds. At its most detailed level, the system now features over 880 fund subcategories, ensuring classification tailored to the evolving needs of the investment community.
Only 23% of EU green bonds to meet December ‘gold standard
Unique in its governance, the EFC is the only classification scheme managed entirely by the fund industry, offering its services free of charge. Both fund groups and data users benefit from this non-monetary model, with all classification results accessible via the EFC webpage or bespoke data feeds.
According to Efama, by expanding its coverage and staying attuned to market trends, the EFC plays a crucial role in the European investment landscape, providing transparent and accessible fund classification across the region.
Thomas Tilley, senior economist at Efama, commented: “The recent leap in the number of EFC classified funds further establishes it as THE credible and comprehensive fund classification scheme for Europe. In the current value for money discussions, it looks possible that some form of peer comparison to evaluate whether funds are indeed providing value for money will be mandated. The EFC, as the only industry-driven, transparent and fully objective pan-European fund classification scheme, could form the basis of such a peer comparison.”
