{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Swaps",
        "Complex Bond Universe",
        "Securities Lending"
    ],
    "classification": "complex",
    "supporting_data": "The HSBC Global Funds ICAV - Global Aggregate Bond UCITS ETF tracks the Bloomberg Global Aggregate Bond Index using a synthetic replication method, explicitly employing total return swaps up to 30% of its assets, although the factsheet notes this exposure is expected to be close to 0%. The Fund may also invest in derivatives for hedging and efficient portfolio management, but derivative use is not an inherent element of the strategy, so 'derivatives' is marked false. The Fund engages in securities lending up to 30-45% of assets, which adds complexity. The underlying index includes a broad range of fixed income securities including asset-backed securities (ABS), mortgage-backed securities (MBS), and bonds with credit ratings below investment grade (Ba1, BB+ and below), which are complex and potentially illiquid. There is no leverage or inverse exposure, and the risk indicator is low (2 out of 7), reflecting low risk to investors. However, the presence of synthetic replication via total return swaps, counterparty risk, and the complexity of the underlying bond universe (including securitized products and lower-rated bonds) drive the MiFID II classification as complex. The PRIIPs KID does not include a comprehension warning but does highlight counterparty, liquidity, and investment leverage risks. The Fund is UCITS compliant and an ETF listed on exchanges. The replication method is synthetic due to swap usage, and the presence of swaps mandates classification as complex under MiFID II, despite low leverage and risk profile. The Fund uses optimisation sampling rather than full physical replication, and the swap exposure, even if minimal, is an inherent part of the strategy. No capital protection or structured features are present. Costs are straightforward with no performance fees, but securities lending and swap fees add complexity. Overall, the synthetic replication and complex underlying assets are the main complexity drivers."
}