The European Fund Classification (EFC), a prominent pan-European system managed by the European Fund and Asset Management Association (EFAMA), has significantly broadened its scope. The system now includes nearly 180,000 fund share classes across most European nations, encompassing the vast majority of European investment funds.
New Categories and Subcategories
The recent update introduces several new fund categories, reflecting the latest market developments. The EFC now features over 880 subcategories, including the following additions:
Crypto Asset Funds
FX Funds
Ultra-Short Bond Funds
Unique Classification System
The EFC remains the only fund classification system managed exclusively by the fund industry. It operates free of charge for both fund managers and data users. All classification results are available to the public without cost through the EFC website or customized data feeds.
Expert Commentary
Thomas Tilley, Senior Economist at EFAMA, highlighted the significance of the expansion: “The increase in EFC classified funds reinforces its status as the leading and most comprehensive fund classification system in Europe. As discussions about Value for Money (VfM) continue, it is likely that some form of peer comparison will be required to assess fund value. The EFC, with its industry-driven, transparent, and objective approach, could serve as the foundation for such evaluations.”
Conclusion
The expanded EFC classification system underscores its growing importance in the European investment landscape, providing valuable tools for fund evaluation and comparison.
