{
    "type": "ETF",
    "ucits": true,
    "fund_name": "Amundi MSCI World II UCITS ETF USD Hedged Dist",
    "investment_objective": "Replicate the USD-denominated MSCI World Net Total Return Index (net dividends reinvested) with currency hedging to reduce exchange risk",
    "primary_asset_class": "Equity",
    "geographic_focus": "Developed countries globally",
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Swaps",
        "Currency Hedging"
    ],
    "classification": "complex",
    "supporting_data": "The ETF uses indirect replication via OTC total return swaps (financial derivative instruments) to achieve its investment objective, explicitly stated in both the KIID and PRIIPs KID. The replication method is synthetic, confirmed by the factsheet. The fund employs a monthly currency hedging strategy to reduce exchange risk, which adds derivative usage but is part of the core strategy rather than risk management only. There is no leverage or inverse exposure. The underlying assets are large- and mid-cap equities in developed markets, which are liquid and transparent. The risk profile is medium (4/7), with explicit counterparty risk disclosures due to swap usage. Costs are straightforward with no performance fees, but swap-related counterparty risk and derivative use are significant complexity drivers. The fund is UCITS compliant. The presence of synthetic replication and swap agreements mandates classification as complex under MiFID II, despite the absence of leverage or complex underlying assets like contingent bonds. The currency hedging and swap counterparty risk increase complexity beyond a simple physical replication ETF. No capital protection or structured features are present. The risk indicator and disclosures align with a medium risk profile but highlight counterparty and derivative risks. No leverage or inverse terms are mentioned. The PRIIPs KID does not carry a specific comprehension warning but confirms the use of swaps and medium risk. Overall, the synthetic replication via swaps and counterparty risk are the main complexity factors driving the classification as complex."
}