{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC JAPAN SUSTAINABLE EQUITY UCITS ETF",
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": true,
    "inverse": false,
    "complex_factors": "Swaps",
    "classification": "complex",
    "supporting_data": "The Fund aims to track the FTSE Japan ESG Low Carbon Select Index using primarily physical replication (full replication of underlying shares). However, it may invest up to 10% of its assets in total return swaps and contracts for difference, with swap usage explicitly mentioned in the KIID and PRIIPs documents. The swaps are used to gain exposure to index constituents when direct investment is not possible or practical, but the presence of funded or unfunded swap structures and counterparty risk is noted. The Fund is UCITS compliant and does not employ leverage or inverse strategies. The risk profile is medium-high (category 5-6 in KIID and PRIIPs), partly driven by derivative and counterparty risks. The Fund also engages in securities lending up to 30% of assets, which adds complexity. No capital protection or structured features are present. The underlying assets are equities of Japanese companies with ESG focus, which are liquid and transparent. The presence of swap agreements, counterparty risk disclosures, and derivative usage for investment purposes (not solely risk management) triggers the MiFID II classification as complex. The Fund does not use leverage or inverse exposure, and the replication is physical with some synthetic overlay. The complexity arises mainly from the swap usage and counterparty risk exposure, despite the physical replication base and straightforward index tracking objective."
}