{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC UK SCREENED EQUITY UCITS ETF",
    "investment_objective": "Track the FTSE UK ESG Low Carbon Select Index",
    "primary_asset_class": "Equity",
    "geographic_focus": "United Kingdom",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Swaps",
        "Counterparty Risk",
        "ESG Screening",
        "High Concentration Index"
    ],
    "classification": "complex",
    "supporting_data": "The Fund aims to physically replicate the FTSE UK ESG Low Carbon Select Index by investing in shares of companies in the index, primarily UK equities. However, the Fund may invest up to 10% of its assets in total return swaps and contracts for difference, which are derivative instruments, and up to 10% in other funds. The use of total return swaps, even if limited, introduces counterparty risk and derivative exposure beyond mere risk management, which under MiFID II rules classifies the Fund as complex. The Fund is UCITS compliant and uses physical replication as the primary method, but the presence of swap agreements (up to 10%) and contracts for difference, along with securities lending (up to 30%), adds complexity. The risk profile is high (category 6 out of 7 in the KIID), reflecting high price fluctuations and derivative-related risks. The PRIIPs KID shows a medium risk indicator (4 out of 7), but confirms derivative and counterparty risks, and investment leverage risk due to derivatives usage. There is no leverage or inverse exposure, and no capital protection or structured features. The Fund invests in liquid, transparent UK equities with ESG screening, but the partial use of derivatives and swaps for gaining exposure and efficient portfolio management triggers the complex classification. The Fund's benchmark is highly concentrated, which may increase tracking error and complexity. Costs are straightforward with no performance fees, but swap and derivative costs are implicit. Overall, the Fund's partial use of swaps and derivatives, counterparty risk, and high risk rating drive the MiFID II complex classification despite physical replication being the main method."
}