About a-team Marketing Services
The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

EFAMA Publishes Briefing on the European Fund Classification (EFC)

Subscribe to our newsletter

The European Fund and Asset Management Association (EFAMA) has published the second edition of its “European Fund Classification” (EFC) Forum Briefing which updates on progress made towards the adoption and enhancement of the EFC so far this year.

The EFC has been launched with a view to enhancing the integrity of European investment funds. The primary goal of the EFC is to make available to all industry stakeholders a classification structure which will address transparency issues. In the short-term it aims to classify and regularly monitor every investment fund available for sale in multiple jurisdictions and the long-term plan is to have complete coverage of UCITS.

The EFC Forum reports that it has now finalised the ‘high level’ categories under which the detailed sector classifications will be grouped. Under this methodology, the universe of equity, bond, mixed and money market funds is segmented according to eight criteria: country/region, sector, market capitalization, currency, credit quality, interest rate, emerging market exposure and asset allocation. EFAMA will publish a report presenting and defining all high level categories in 2012 Q1.

The EFC has made significant progress having classified 5,822 funds incorporating 14,559 shares on the basis of the portfolio holdings at end June 2011. This is a considerable increase compared to the 2,847 funds and 10,155 shares classes classified at end March 2011. Furthermore, 30 EFAMA corporate members are now submitting their cross-border funds to the EFC classification process; the list is provided in the Briefing.

Looking forward, a number of fund distributing platforms will incorporate the EFC within their selection system – Allfunds Bank is already committed to that – and a number of fund managers will start providing portfolio data for the classification of their home domiciled funds. These developments will further enhance the profile of the EFC in 2012.

Peter de Proft, Director General of EFAMA commented: “The financial crisis highlighted the need for the fund industry to inform, protect and listen to investors and the EFC initiative to improve transparency is a message to European authorities, investor associations and the public that the industry is taking action to advance the protection of investors.”

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Data standards and global identifiers update

Date: 21 June 2022 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Data standards and global identifiers are the international language of capital markets – but how widely have they been adopted, how useful are they in practice, and can they stand the test of sustaining stable markets? This webinar will...

BLOG

DSB Call for Industry Feedback on UPI Legal Terms and Conditions Consultation

The Derivatives Service Bureau (DSB) has opened a consultation on the legal terms and conditions, and client support model, expected to apply to users of the Unique Product Identifier (UPI) Service, due to launch next year. The consultation sets out a range of proposals aimed to align with industry feedback for the DSB to support...

EVENT

Data Management Summit USA Virtual (Redirected)

The highly successful Data Management Summit USA Virtual was held in September 2020 and explored how sell side and buy side financial institutions are navigating the global crisis and adapting their data strategies to manage in today’s new normal environment.

GUIDE

Regulatory Data Handbook – Third Edition

Need to know all the essentials about the regulations impacting data management? Welcome to the third edition of our A-Team Regulatory Data Handbook which provides all the essentials about regulations impacting data management. A-Team’s series of Regulatory Data Handbooks are a great way to see at-a-glance: All the regulations that are impacting data management today...