# EFAMA - EFC Categories The European Fund Classification (EFC) is a pan-European classification system of investment funds which has been developed by the European Fund Categorisation Forum (EFCF) – a dedicated Task Force of the European Fund and Asset Management Association (EFAMA). The EFC classification schema is well-defined and built on transparent classification criteria that permit an easy comparison of like-for-like investment funds across different European jurisdictions. The EFC fund universe is split into 6 main, high-level categories: Equity, Bond, Multi-asset, Money market, “Absolute Return Innovative Strategies” (ARIS) and Other. Those six categories are then further broken down into subcategories based on a combination of different categorisation elements. These subcategories are both exhaustive and unique, offering a level of detail and differentiation that sets it apart from other fund classification systems. A fund can only belong to one category, ensuring clear and comparable results. The term “fund” covers all types of funds, including all funds classified according to the EU UCITS (Undertakings for Collective Investments in Transferable Securities) Directive and AIFM (Alternative Investment Fund Managers) Directive. Exchange-Traded Funds (ETFs) are also included and are classified the same way as conventional funds. The EFC is industry owned and governed without commercial bias. All professional industry stakeholders, fund managers, distributors, platforms, data vendors, national associations and policymakers can use the EFC results freely. The classification results can be used to build other applications on (ratings, …) or integrate into stakeholders own systems. The EFC is not targeted at retail investors. **Status**: active | **URL**: https://open.gamstandards.com/collections/efama-efc-categories **License**: License: EFAMA Copyright Policy. Users may store and print content for personal, non-commercial use and cite brief excerpts with attribution. Other reproduction, modification, or distribution requires express written consent. Credit: EFAMA as the source and http://www.efama.org as the URL. Details: https://www.efama.org/disclaimer ## Resources and References ### Download Classification Results Downland the latest EFC classification results - **Type**: Web Link - **URL**: https://www.fefundinfo.com/landing-pages/inst/european-fund-classification-efc-gams - **Full contents (Markdown)**: https://open.gamstandards.com/api/ai/collections/c29c7894-7561-4edd-9966-0f3fcbba503f/references/e5787fdc-8ae3-46eb-8bc4-474ce2d461dd/contents/markdown - **Full contents (JSON)**: https://open.gamstandards.com/api/ai/collections/c29c7894-7561-4edd-9966-0f3fcbba503f/references/e5787fdc-8ae3-46eb-8bc4-474ce2d461dd/contents **Contents outline**: - EFC - Classification results - Consolidated Classification - Verified classification - Subscribe to classification results - Connect - Careers - Information - Part of the FE fundinfo group ### The EFC Categories Review the EFC Categories brochure to understand the classification structure - **Type**: Web Link - **URL**: https://www.efama.org/sites/default/files/files/efccategory-brochure_2025.pdf - **Full contents (Markdown)**: https://open.gamstandards.com/api/ai/collections/c29c7894-7561-4edd-9966-0f3fcbba503f/references/7d13f148-e025-47c1-8293-a207daab1f8c/contents/markdown - **Full contents (JSON)**: https://open.gamstandards.com/api/ai/collections/c29c7894-7561-4edd-9966-0f3fcbba503f/references/7d13f148-e025-47c1-8293-a207daab1f8c/contents **Contents outline**: - European Fund Classification (page 1) - Preface (page 3) - 1. Introduction (page 5) - 2. Background (page 6) - Main (page 7) - Bond (page 7) - ARIS (page 7) - Other (page 7) - Asset Class Level (page 8) - Sector (page 9) - Market Cap (page 9) - 4. EFC Categories (page 9) - 4.1 Equity Fund Categories (page 9) - Equity (page 9) - EFC EQUITY CATEGORIES (page 11) - Global (page 11) - Europe (page 11) - Region (page 11) - Country (page 12) - EFC EQUITY CATEGORIES (page 13) - Regions (page 13) - Countries (page 13) - Small Cap (page 13) - Sector (page 14) - 4.2 Bond Fund Categories (page 15) - 4.2.1 General Bond Fund Categories (page 15) - EFC GENERAL BOND CATEGORIES (page 17) - Short Term (page 17) - Medium Term (page 17) - Long Term (page 17) - Aggregate (page 17) - EFC GENERAL BOND CATEGORIES (page 18) - Short Term (page 18) - Medium Term (page 18) - Long Term (page 18) - Corporate (page 18) - EFC GENERAL BOND CATEGORIES (page 19) - Short Term (page 19) - Medium Term (page 19) - Long Term (page 19) - Government (page 19) - EFC GENERAL BOND CATEGORIES (page 20) - Short Term (page 20) - Medium Term (page 20) - Long Term (page 20) - Aggregate High Yield (page 20) - EFC GENERAL BOND CATEGORIES (page 21) - Short Term (page 21) - Medium Term (page 21) - Long Term (page 21) - High Yield (page 21) - 4.2.2 Emerging Market Bond Fund Categories (page 22) - Bond (page 22) - Currency (page 22) - Local Currency (page 22) - EFC EMERGING MARKET BOND CATEGORIES (page 23) - Africa (page 23) - Global (page 23) - Emerging Markets (page 23) - EFC FLOATING RATE CATEGORIES (page 24) - Floating Rate (page 24) - EFC INFLATION LINKED CATEGORIES (page 24) - Inflation Linked (page 24) - 4.2.5 Flexible Bond Fund Categories (page 25) - EFC FLEXIBLE CATEGORIES (page 25) - 4.2.6 Ultra Short Bond Fund Categories (page 25) - EFC ULTRA SHORT BOND CATEGORIES (page 25) - Bond Ultra Short (page 25) - 4.2.7 Mortgage-backed Bond Fund Categories (page 25) - 4.3 Multi-Asset Fund Categories (page 26) - EFC MULTI-ASSET CATEGORIES (page 28) - Defensive (page 28) - Balanced (page 28) - EFC MULTI-ASSET CATEGORIES (page 29) - Defensive (page 29) - Balanced (page 29) - EFC MULTI-ASSET CATEGORIES (page 30) - Defensive (page 30) - Balanced (page 30) - Balanced (page 30) - Region (page 30) - Americas (page 30) - Asia Pacific (page 30) - EFC MULTI-ASSET CATEGORIES (page 31) - Defensive (page 31) - Balanced (page 31) - 4.4 Money Market Fund Categories (page 32) - Currency (page 32) - LVNAV (page 32) - Currency (page 32) - EFC MONEY MARKET CATEGORIES (page 33) - LVNAV (page 33) - Money Market (page 33) - 4.5 ARIS Categories (page 34) - ARIS (page 34) - Long/Short (page 34) - Multi-Strategy (page 34) - Event Driven (page 34) - EFC ARIS CATEGORIES (page 35) - EFC ARIS CATEGORIES (page 36) - Long/Short (page 36) - Event Driven (page 36) - 4.6 Other Categories (page 37) - EFC OTHER CATEGORIES (page 37) - Other (page 37) - Appendix 1: List and Composition of EFC Regions (page 39) ### EFC Procedural Overview for Fund Managers Downland the Procedural brochure to find out how the funds are classified - **Type**: Web Link - **URL**: https://www.efama.org/sites/default/files/files/efc-procedure-brochure-january-2025_0.pdf - **Full contents (Markdown)**: https://open.gamstandards.com/api/ai/collections/c29c7894-7561-4edd-9966-0f3fcbba503f/references/96cf9867-9441-48e5-a77a-118ee258ad30/contents/markdown - **Full contents (JSON)**: https://open.gamstandards.com/api/ai/collections/c29c7894-7561-4edd-9966-0f3fcbba503f/references/96cf9867-9441-48e5-a77a-118ee258ad30/contents **Contents outline**: - Table of Contents (page 2) - Yes (page 6) - Yes See Figure 3.1 (page 8) - Yes Yes (page 8) - No No No (page 8) - Yes (page 8) - 4. Declaration and the Verification Report (page 9) ### European Fund Classification Learn more about the EFC and view latest statistics - **Type**: Web Link - **URL**: https://www.efama.org/SitePages/EFCF.aspx - **Full contents (Markdown)**: https://open.gamstandards.com/api/ai/collections/c29c7894-7561-4edd-9966-0f3fcbba503f/references/b11826f4-0bb3-471e-bee8-43a79e00a3ee/contents/markdown - **Full contents (JSON)**: https://open.gamstandards.com/api/ai/collections/c29c7894-7561-4edd-9966-0f3fcbba503f/references/b11826f4-0bb3-471e-bee8-43a79e00a3ee/contents **Contents outline**: - Follow us: - Member - European Fund Classification - Members ## Frequently Asked Questions **Q: What does the European Fund Classification (EFC) standard define?** The EFC is a proven and stable classification method based on the portfolio holdings of funds, rather than fund labels or marketing categories. It brings tangible benefits to all market participants by enabling transparent comparisons of funds and facilitating peer group analysis. The enriched data set offered by the classification enhances depth of possible analysis, making it highly versatile and applicable across diverse regulatory, investment, and reporting contexts. **Q: How does the EFC relate to existing industry practices and regulations?** Supported by [EFAMA](https://www.efama.org/), the EFC serves as an industry-led standard that replaces fragmented, proprietary classification systems used by different industry players. It enhances transparency and facilitates cross-border fund distribution by providing a single, objective classification framework across Europe. The schema is regularly updated to include new categories, reflecting the evolving nature of the investment landscape. **Q: What is the difference between verified and indicative classifications?** The EFC offers two types of classification: **verified classification**, which is based on analysis of actual portfolio holdings data and is regularly monitored; and **indicative classification**, which serves as a preliminary step toward full verification. The monitoring is carried out by a neutral Classification Administrator ([FE fundinfo](https://www.fefundinfo.com/)), while fund managers remain actively involved throughout the process. **Q: What are Additional Categorisation Elements and structural flags?** Beyond the primary category, the EFC includes a number of structural characteristics and flags that provide additional context about a fund. These include indicators such as whether a fund is passively or actively managed, whether it is open-ended or closed-ended, and investment themes for equity funds. These flags are presented alongside the main classification results and can be declared by fund providers to the Classification Administrator for inclusion in the public report. **Q: What is the EFC Category Code and how can it be used?** The EFC Category Code is a 13-step alphanumeric code that provides a structured, machine-readable representation of a fund's classification. The code is built on a consistent logic applicable across all asset classes, whereby each position in the code corresponds to a specific classification parameter. Not all steps will be populated for every fund, as their relevance varies depending on the asset class. The EFC Category Code is particularly useful for organisations looking to store, process, or automate the handling of classification results in a systematic way. ## Glossary **EFC (European Fund Classification)**: A pan-European industry standard for classifying investment funds to facilitate cross-border comparison, transparency, and peer group analysis. **EFAMA (European Fund and Asset Management Association)**: The representative association for the European investment management industry, which oversees and promotes the European Fund Classification standard. **CA (Classification Administrator)**: Fund classifications are reviewed on a quarterly basis by the CA to monitor a fund’s adherence to the classification criteria. The classification process is done free of charge by FE fundinfo. **UCITS (Undertakings for Collective Investment in Transferable Securities)**: A regulatory framework of the European Commission that creates a harmonized regime for the management and cross-border distribution of mutual funds across Europe. **AIFMD (Alternative Investment Fund Managers Directive)**: A European Union directive that regulates alternative investment fund managers, covering funds outside the UCITS framework such as hedge funds, private equity, and real estate funds. **ARIS (Absolute Return and Investment Strategies)**: An EFC asset class encompassing funds that utilize non-traditional investment strategies aiming to generate positive returns regardless of broader market conditions. --- ## Suggested Workflow (1) Consult the reference documents for supporting guidance via GET https://open.gamstandards.com/api/ai/collections/c29c7894-7561-4edd-9966-0f3fcbba503f/references/{referenceId}/contents/markdown. (2) Use the glossary terms to interpret domain-specific terminology.