{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "inverse": false,
    "derivatives": false,
    "swaps": true,
    "complex_factors": [
        "Use of swaps and derivatives for income generation",
        "Active management with quantitative models",
        "Counterparty risk from derivatives",
        "Potential market leverage via derivatives",
        "Equity-related instruments including call options and futures"
    ],
    "classification": "complex",
    "supporting_data": "The iShares World Equity High Income Active UCITS ETF is a UCITS-compliant ETF that invests primarily in developed market equities. The fund is actively managed and uses a variety of derivative instruments including call options, futures, and swaps to generate income and manage risk. The KIID explicitly states the use of equity-related instruments and derivatives, including swaps, which expose the fund to counterparty risk. The fund may generate market leverage through derivatives, although no explicit leverage ratio above 1:1 or inverse/leveraged exposure is mentioned. The replication method is physical in the sense that the fund invests directly in equities but supplements this with derivatives for income and risk management. The presence of swaps and derivatives as an inherent part of the investment strategy, combined with counterparty risk disclosures and the use of quantitative models, triggers the MiFID II complexity classification. The risk profile is medium (4 out of 7 in PRIIPs, 5 in KIID), reflecting derivative usage but not extreme leverage. The fund does not use capital protection or structured products, nor does it invest in complex underlying assets like contingent convertible bonds. However, the use of derivatives and swaps for income generation and potential market leverage, along with counterparty risk, means the fund is classified as complex under MiFID II. The PRIIPs KID does not contain a specific comprehension warning but confirms the derivative usage and risk profile. The monthly factsheet confirms the fund holds a diversified equity portfolio with derivative overlays and collateral (cash collateral noted), consistent with synthetic elements. No explicit funded or unfunded swap structure is detailed, but the presence of swaps and counterparty risk is clear. No leverage or inverse exposure terms are present. Therefore, the classification is complex primarily due to swap usage and derivative instruments integral to the investment strategy."
}