{
    "type": "ETF",
    "ucits": true,
    "fund_name": "AMUNDI ETF MSCI FRANCE UCITS ETF",
    "investment_objective": "Replicate as closely as possible the performance of the MSCI France Index (Eurozone equities), net dividends reinvested.",
    "primary_asset_class": "Equity",
    "geographic_focus": "France",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Swap-based synthetic replication",
    "classification": "complex",
    "supporting_data": "The fund is a UCITS ETF aiming to replicate the MSCI France Index. The KIID and PRIIPs KID explicitly state that the fund uses swap-based replication via total return swaps (TRS) or forward foreign exchange contracts to synthetically replicate the index. However, the latest monthly factsheet dated 31/03/2025 states the replication type as 'Physical'. This discrepancy suggests the fund may use a combination or has transitioned, but the KIID and PRIIPs KID emphasize synthetic replication with swap usage. The presence of total return swaps and counterparty risk disclosures in the KIID and PRIIPs KID confirm derivative instruments are inherent to the strategy, not merely for risk management. There is no leverage, inverse exposure, or capital protection features. The risk rating is 5/7, indicating medium-high market risk, consistent with equity exposure and counterparty risk from swaps. Costs are straightforward with no performance fees, and ongoing charges are 0.25%. The fund invests in liquid, large-cap French equities, with no complex underlying assets like contingent bonds or CLOs. Despite the physical replication claim in the factsheet, the regulatory documents clearly indicate synthetic replication with swap usage, which under MiFID II rules classifies the ETF as complex due to the inherent derivative and counterparty risk exposure. No leverage or inverse exposure is present, and derivatives are used as an inherent part of the strategy, not just for hedging. Therefore, the fund is classified as complex primarily due to its synthetic replication via total return swaps and associated counterparty risk."
}