{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC MULTI FACTOR WORLDWIDE EQUITY UCITS ETF",
    "replication_method": "synthetic",
    "leverage": false,
    "derivatives": false,
    "swaps": true,
    "inverse": false,
    "complex_factors": [
        "Swaps",
        "Active management with deviation from benchmark",
        "Use of derivatives for investment and risk management",
        "Securities lending"
    ],
    "classification": "complex",
    "supporting_data": "The Fund is a UCITS-compliant ETF that aims for long-term capital growth through active management of a multi-factor equity portfolio based on the MSCI AC World Index. It invests primarily in equities but may deviate materially from the benchmark. The KIID and PRIIPs documents explicitly state that the Fund may invest up to 10% of its assets in total return swaps and contracts for difference, with derivatives also used for efficient portfolio management and investment purposes. This swap usage is inherent to the investment strategy rather than solely for risk hedging, triggering complexity under MiFID II. The Fund also engages in securities lending up to 30% of assets, adding to complexity. There is no leverage or inverse exposure, and replication is not physical but synthetic via derivatives. The risk profile is medium-high (category 6 in KIID, 4 in PRIIPs), reflecting market volatility and derivative risks. No capital protection or structured features are present. Costs are straightforward with no performance fees, but derivative and swap usage imply additional complexity. The active management and use of swaps, combined with synthetic replication, mean the product is complex under MiFID II despite no leverage or contingent bonds. The PRIIPs document does not carry a specific comprehension warning but confirms derivative and counterparty risks. The monthly factsheet confirms the Fund\u2019s use of total return swaps up to 10% and active management with deviation from the MSCI AC World Index. Overall, the presence of swap agreements and synthetic replication are the main drivers of complexity classification.",
    "risk_level_assessment": "The Fund\u2019s stated risk profile is medium to high (6/7 in KIID, 4/7 in PRIIPs), consistent with the use of derivatives and active management. While no leverage is employed, the derivative and swap exposure increases risk and complexity, aligning with the MiFID II complex classification."
}