Efama aims to unite Europe in fund category scheme

Calssification1The European Fund and Asset Management Association (Efama) is hoping to unite fund distributors, data companies and national organisations in using a “true pan-European classification of investment funds” that will aid fund comparison. The scheme divides 3,296 funds from 124 asset managers into six broad categories. There are equity, bond, multi-asset and money market funds, alongside “absolute return innovative strategies”, which seek positive returns in all market conditions, and “other” funds, which captures a number of alternative vehicles, for instance real estate funds. There are further subdivisions within the main categories. The classification was devised by data provider FundConnect in a joint venture with Finesti, a subsidiary of the Luxembourg Stock Exchange. These firms are charged with reviewing the portfolio holdings of asset managers interested in adopting the classification scheme and monitoring, on a quarterly basis, adherence to the scheme. More than half, 53%, of the products in the scheme are equity funds, 27% are bond funds, 9% are multi-asset and 7% are “other”. Money market and absolute return innovative strategies account for just 2% each of the funds. The 3,296 funds in the scheme include 13,048 share classes. The most popular sub-category of funds is “equity global advanced markets”, which accounts for 9% of all share classes, followed by “bond emerging global”, which accounts for 3% and “multi-asset global advanced markets balanced”, with 1%. Peter De Proft, director general of Efama, said the categories “provide the European fund industry with a tool to support the Ucits brand with a single standard of fund classification designed to give distributors and their clients the confidence that the fund they select are true to their label”. ©2012 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.