Pan-European fund classification makes progress

ClassificationThe European Fund and Asset Management Association says it is making progress in introducing a new pan-European classification system of investment funds.

The European Fund Classification has been developed by the European Fund Organization, a working group of the association, to ensure transparent comparisons of cross border funds.

The number of classified funds rose to 5,822 funds, incorporating 14,559 shares on the basis of the portfolio holdings, by June. In comparison, at the end of March 2,847 funds, incorporating 10,155 shares, were classified.

Furthermore, 30 corporate members of the association are now submitting their cross-border funds to the classification process.

The new classification system aims to create a basis for a less controversial group analysis, by using a common language for fund classifications, high threshold levels and a greater standardisation.

Today the association published the second edition of its European Fund Classification Forum Briefing, which updates on progress made towards the adoption and enhancement.

Peter de Proft, the director general, says: “The financial crisis highlighted the need for the fund industry to inform, protect and listen to investors and the [classification] 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.”

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