{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC MSCI AC FAR EAST ex JAPAN UCITS ETF",
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": true,
    "inverse": false,
    "complex_factors": "Swaps usage, Emerging Markets exposure, Concentrated benchmark",
    "classification": "complex",
    "supporting_data": "The Fund aims to track the MSCI AC Far East ex Japan Index primarily through physical full replication of underlying equities, which is a non-complex indicator. However, the Fund may invest up to 10% of its assets in total return swaps and contracts for difference, and derivatives are used for both investment and efficient portfolio management purposes. The KIID and PRIIPs documents explicitly mention swap usage and counterparty risk, which are complexity flags under MiFID II. The Fund also engages in securities lending up to 25-30% of assets, adding operational complexity. The benchmark is concentrated, with a small number of securities making up a significant proportion of the index, increasing tracking risk and complexity. The risk and reward indicator is high (category 6 in KIID, 4 in PRIIPs), reflecting high volatility and derivative-related risks. The monthly factsheet confirms physical full replication as the primary method but acknowledges derivative usage up to 10%, consistent with the documents. There is no leverage or inverse exposure. The Fund invests in emerging markets, which are inherently more volatile and less liquid, adding to complexity. Although derivatives are partly used for risk management, the presence of total return swaps and contracts for difference as part of the investment strategy, plus counterparty risk disclosures, require classification as complex under MiFID II. No capital protection or structured features are present. Costs are straightforward with no performance fees, but swap and derivative costs are embedded. Overall, the Fund\u2019s partial use of swaps and derivatives, combined with emerging market exposure and benchmark concentration, drive the complex classification despite physical replication being predominant."
}