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The Commission published a new research study on European investment funds which surveys the investment outcomes of UCITS and non-UCITS funds over the five past years. It finds that a large number of UCITS funds have started to invest in derivatives.
The study also examines the risks associated with the use of enlarged investment powers such as leverage risk, valuation risk, liquidity risk and counterparty risk. The survey finds that fund managers develop strong risk management procedures before launching new, more complex products.
The study will feed into the forthcoming communication on non-harmonised investment funds to be published in autumn 2008.
A public hearing on non-harmonised retail funds and real estate funds will be held in