{
    "type": "ETF",
    "ucits": true,
    "replication_method": "synthetic",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Total return swaps usage",
        "Contingent Convertible Bonds exposure",
        "Counterparty risk",
        "Optimization technique with tracking error",
        "Securities lending"
    ],
    "classification": "complex",
    "supporting_data": "The HSBC Global Funds ICAV - Global Aggregate Bond UCITS ETF tracks the Bloomberg Global Aggregate Bond Index using an optimisation technique and may invest up to 30% in total return swaps, indicating synthetic replication. The Fund invests in a broad range of bonds including asset-backed securities (ABS), mortgage-backed securities (MBS), and contingent convertible bonds (CoCo bonds), which are complex underlying assets. The KIID and PRIIPs documents disclose counterparty risk related to swap agreements and derivatives, although derivatives are used primarily for hedging and efficient portfolio management, not as an inherent element of the strategy. The Fund does not employ leverage or inverse exposure. The risk profile is moderate to low (risk category 3 in KIID, 2 in PRIIPs), but the presence of CoCo bonds, swap usage, and counterparty risk elevate complexity under MiFID II. The Fund is UCITS compliant and uses synthetic replication via total return swaps, which are funded and expose investors to counterparty risk. Securities lending up to 45% of assets adds further complexity. No capital protection or leverage is present. Costs are straightforward with no performance fees, but swap fees and securities lending revenues imply additional complexity. The PRIIPs KID does not include a comprehension warning but confirms derivative and swap usage. The monthly factsheet confirms swap usage up to 30%, though expected to be near zero currently, and confirms the presence of complex bond types including CoCo bonds. Overall, the synthetic replication via swaps combined with complex underlying assets and counterparty risk leads to a MiFID II classification of complex."
}