New industry initiative to extend the European fund classification
On 16 october 2018, The European Fund and Asset Management Association (EFAMA) has launched an Indicative Classification (IC) to address the market need for a stronger coverage of the European Fund Classification (EFC).
The EFC is a pan‐European classification system of investment funds, which has been developed to permit simple comparison of funds with comparable investment strategies. The growth of cross-border fund distribution heightened the need for such a classification system to facilitate consistent peer group analysis across Europe and strengthen the further development of the single market for investment funds. The European Fund Classification is built on well-defined criteria to define EFC categories and ensure transparency for investors and fund management companies. In the first stage of this new industry initiative, an indicative classification has been made for funds distributed in the Nordic countries, Switzerland and/or Germany.