{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC Global Funds ICAV - Global Corporate Bond UCITS ETF",
    "investment_objective": "Track Bloomberg Global Aggregate Corporate Bond Index (total return hedged to USD) aiming for regular income and capital growth",
    "primary_asset_class": "Corporate Bonds",
    "geographic_focus": "Global (Developed and Emerging Markets)",
    "replication_method": "physical",
    "swaps": false,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Contingent Convertible Bonds, Securities Lending, Optimisation Technique",
    "classification": "complex",
    "supporting_data": "The Fund is a UCITS ETF physically replicating the Bloomberg Global Aggregate Corporate Bond Index with an optimisation technique to minimise tracking error. It invests primarily in investment grade corporate bonds globally, including emerging markets, and may hold bonds rated below investment grade (Ba1, BB+ and below) and contingent convertible bonds (CoCo bonds), which are complex and volatile instruments. The Fund uses derivatives only for hedging and efficient portfolio management, not for leverage or synthetic replication. There is no use of swaps or synthetic replication. The Fund engages in securities lending up to 30% of assets, which adds counterparty risk. The Risk and Reward Indicator is moderate (4 in KIID, 3 in PRIIPs KID), but the presence of CoCo bonds, counterparty risk, and derivatives risk disclosures indicate complexity. The Fund\u2019s optimisation approach and inclusion of lower-rated bonds and CoCo bonds increase complexity beyond a straightforward physical replication. The PRIIPs KID does not include a comprehension warning but highlights investment leverage risk due to derivatives use for risk management, not inherent leverage. The Fund\u2019s risk disclosures include counterparty risk and derivatives risk, and the presence of CoCo bonds is a key complexity driver. No leverage or inverse exposure is present. The Fund is UCITS compliant and physically replicates the index, but the complexity of underlying assets (CoCo bonds) and securities lending counterparty risk lead to a classification as complex under MiFID II. The Fund\u2019s cost structure is simple with no performance fees and low ongoing charges. Overall, the complexity arises from the nature of underlying assets (CoCo bonds), securities lending, and derivative use for hedging, not from synthetic replication or leverage.",
    "risk_level_assessment": "The Fund\u2019s stated risk level is moderate (4 in KIID, 3 in PRIIPs KID), reflecting medium fluctuations and risks associated with corporate bonds including CoCo bonds and counterparty risk. This aligns with the complexity classification as the presence of CoCo bonds and counterparty risk elevate the complexity despite the absence of leverage or synthetic replication."
}